PT Lapindo Brantas

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Lapindo Brantas Inc is an Indonesian oil and gas exploration company and initially formed 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.[1]

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.

Contents

[edit] CITYGAS

The CITYGAS project by Lapindo supplies households in East Java with steady supply of natural gas through built in pipline infrastructure to complement the Indonesian government 's policy and gas initiative to reduce dependence of kerosene as an energy source.[2] 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.[3]

[edit] Lumpur Sidoarjo

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)[4] despite being acquitted as the cause of the mudflow in 2009 by Indonesia's Supreme Court.[5] 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.[6][7] 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 [8] amidst the mud disaster's highly political climate.[9]

[edit] References

[edit] External links

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