PT Lapindo Brantas
PT Lapindo Brantas Inc is an Indonesian oil and gas exploration company, initially established as a joint venture between PT. Energi Mega Persada Tbk. (50%), PT. Medco Energi Tbk. (32%) and Santos Australia (18%), where the Bakrie family, through its investments, held a controlling stake in PT. Energi Mega Persada Tbk.. Lapindo Brantas currently employs a staff of 77 permanent and contract employees and 142 personnel working for the company through a third party contract.
It operates in the Brantas Block in East Java, Indonesia where its working site covers 3,042 km2. encompassing two onshore and three offshore sites:
Area-1: Kediri Regency, Nganjuk Regency and Jombang Regency (onshore)
Area-2: Sidoarjo Regency, Pasuruan Regency and Mojokerto Regency (onshore)
Area-3: Probolinggo Regency and Situbondo Regency (offshore)
Area-4: Probolinggo Regency and Situbondo Regency (offshore)
Area-5: Probolinggo Regency and Situbondo Regency (offshore)
As of January 2011, approximately 20.58 MSTB of oil and gas has been produced by LBI from its two productive areas.
The CITYGAS project by Lapindo supplies households in East Java with a steady supply of natural gas through a built in pipeline infrastructure to complement the Indonesian government's policy and gas initiative to reduce dependence on kerosene as an energy source. The project involved the signing of a contract to sell 8MMSCFD of gas to "City Gas" in a 2009 agreement with the Director General of Oil and Gas to supply households in surrounding villages of Surabaya and to encourage the switch to LPG.
After the Sidoarjo mud flow disaster, Lapindo Brantas took over responsibility in covering for the cost of emergency response and victim resettlement, citing having paid more than Rp. 5 trillion (approx. USD 550 million) despite being acquitted as the cause of the mudflow in 2009 by Indonesia's Supreme Court. Uncertainty still surrounds the exact cause of the mud eruption with scientists and geological experts unable to reach a unanimous conclusion as some argue it was the result of man-made drilling while others support the theory that its cause was a natural disaster linked to the reactivation of Mt. Semeru in nearby Yogyakarta. Most observers believe this uncertainty over the cause to be whitewash.
In August 2012, geologists definitely stated that the Sidoarjo mudflow was caused by drilling operation misconduct which only used a quarter of the height of drilling wallpipe and was not caused by an earthquake 275 kilometer away. This was stated by a Constitutional Court concerned with the National Budget to bear a part of the disaster fund. It is also the conclusion of a British team of geologists. The UK team of geologists downplayed Lapindo's argument and concluded that the earthquake was not merely coincidental. While it could have generated a new fracture system and weakened strata surrounding the Banjar-Panji 1 well, it could not have been the cause of the formation of the hydraulic fracture that created the main vent 200 m (660 ft) away from the borehole. Additionally there was no other mud volcano reported on Java after the earthquake and the main drilling site is 300 km (190 mi) away from the earthquake's epicenter. The intensity of the earthquake at the drilling site was estimated to have been only magnitude 2 on Richter scale, the same effect as a heavy truck passing over the area.
In June 2008, a report released by British, American, Indonesian, and Australian scientists concluded that the volcano was not a natural disaster, but the result of oil and gas drilling. In spite of this Indonesia's Agency for the Assessment & Application of Technology (BPPT) declared the mudflow to be a natural disaster, contradicting the previous government investigation headed by Professor Rudi Rubiandini (former head of the investigative team, established by the Energy and Mineral Resources Ministry). In the previous assessment, he declared that scientifically the mud that spewed out is because of human error.
To understand how, after its own investigations and international investigations concluded that the disaster was caused by shortcuts taken in the drilling precedure, the government could suddenly change tack and declare it a natural disaster, thus exonerating Lapindo Brantas and wannabee president Aburizal Bakrie, one needs to understand that both courts and government departments in Indonesia are easily bought by those with enough money. Convicted murderers with money leave prison after a few years, e.g. Tommy Soeharto, released after 4 years of a 15-year murder sentence (and during the 4 years he was "in jail" – in his own luxury wing – he was often seen at luxury hotels, restaurants and nightclubs) Adiguna Sutowo, jailed for a paltry 7 years after murdering a hotel employee because a partner's credit card was declined, and released within 3 years (also with reported sightings while he was supposed to be in jail). Bank Century, is another example of how money talks and walks in Indonesia. Bank Century was granted a government bailout after declaring itself insolvent. Four times the approved bailout left government coffers. It is alleged that the extra money was to pay off political backers of president Susilo Bambang Yudhoyono who had paid for his election victory. Getting the Indonesian government to declare the mudflow a natural disaster would be a simple matter of paying off the right people.
Claims that some mudflow victims have not been paid compensation as promised by Lapindo Brantas is still a matter of controversy due to disagreements over compensation packages and lack of documents to verify legal land ownership. As a result, mudflow victims often hold demonstrations to demand payments amidst the mud disaster's highly political climate.
- "Welcome". Lapindo-brantas.co.id. Retrieved 23 November 2012.
- "Government May Subsidize City Gas Pipelines". The Jakarta Globe. Retrieved 23 November 2012.
- "Lapindo – History". Lapindo-brantas.co.id. Retrieved 23 November 2012.
- "Bakrie: Social Impact Report: Sidoarjo Mud Volcano". Dl.dropbox.com. Retrieved 23 November 2012.
- "New Evidence May Reopen Lapindo Mud Case". The Jakarta Globe. Retrieved 23 November 2012.
- Lazy, The (6 October 2010). "Debate Renewed Over Cause of Lusi Mud Volcano". EarthCurrent. Retrieved 23 November 2012.
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- "Pakar Geologi Pastikan Lumpur Lapindo Karena Salah Pengeboran". 7 August 2012.
- Richard J. Davies, Richard E. Swarbrick, Robert J. Evans and Mads Huuse (February 2007). "Birth of a mud volcano: East Java, May 29, 2006". GSA Today 17 (2): 4. doi:10.1130/GSAT01702A.1. Retrieved 4 March 2007.
- Richard van Noorden (30 August 2006). "Mud volcano floods Java". email@example.com. Retrieved 18 October 2006.
- Javan mud volcano triggered by drilling, not quake , press release from UC Berkely, 9 June 2008
- Sidoarjo mud flow from NASA's Earth Observatory, posted 10 December 2008. This article incorporates public domain text and images from this NASA webpage.
- , Tempo, Tuesday, 18 March 2008
- Moore, Matthew (17 June 2005). "Super-rich murderer jailed for seven years". Sydney Morning Herald. Retrieved 20 March 2013.
- "New facts on Bank Century scandal: Legislator". Antara. 10 August 2012. Retrieved 20 March 2013.
- "Mining Advocacy Network – Lapindo mudflow victims stage rally at Presidential Palace". JATAM. 2 December 2008. Retrieved 23 November 2012.
- "Lapindo Mud Saga May End Today". The Jakarta Globe. Retrieved 23 November 2012.