Words flow like the mud in Sidoarjo

Lapindo Told to Shell Out For Mudflow Before Drilling Again.



Surabaya. East Java Governor Soekarwo said on Friday that Lapindo Brantas, blamed for triggering a devastating mudflow in Sidoarjo, could only resume drilling operations there if it paid outstanding damages to residents.

“There are some overdue payments and this has to be paid if they want to drill again. This is in line with a sense of justice,” Soekarwo said.

He said the oil and gas drilling firm, which is part of the Bakrie Group, still owed victims of the 2006 disaster Rp 452 billion ($52.9 million) in compensation after the May 15 deadline set by the company to settle all payments lapsed.

Though the government had set a later deadline — by the end of 2012 — for indemnities, Soekarwo said the company should “accelerate the payments.”

“And even then, it would still depend on whether the local community would allow them [to drill for oil and gas],” he said.

But company spokesman Diaz Raichan said the drilling project in Kalidawir village, Tanggulangin subdistrict — an area close to Porong subdistrict, where the mudflow occurred — had to push through.

“What is clear is that the city gas program should continue to run because this is a project of the central government,” he said.

The Ministry of Energy and Mineral Resources launched the gas program last year for Surabaya and surrounding areas.

Under the program, Lapindo will provide gas to the area from one of the its wells in Kalidawir.

“All will be taken from the Kalidawir well. We deem it enough to meet the gas demand for Surabaya,” Diaz said. “There are five wells in Kalidawir, although only two are in operation.”

Diaz added that only upstream oil and gas regulator BPMigas had the authority to allow or restrict the company from pushing through with the project.

He said BPMigas had issued a permit for drilling operations until 2020 in Sidoarjo, where Lapindo operates several wells.

However, officials in Tanggulangin had refused to approve the permit, saying the company had to consult with villagers first.

“The authority lays with BPMigas but we will continue to work together with the regional administration because the location [of the drilling project] is close to settlements,” Diaz said.

He added that the company would be able to complete payments this year to residents in 12 villages of Porong subdistrict, which had been swamped in mud following a blowout of one of Lapindo’s natural gas wells in May 2006. Mud is expected to continue gushing until at least 2037.

(x the JG)