ASIA

Downer EDI unit to help stem mudflow from Indonesian well

LAPINDO Brantas, operator of the contentious Banjar Panji-1 gas exploration well in Indonesia, ha...

Downer EDI unit to help stem mudflow from Indonesian well

The onshore well, located in the Brantas Production Sharing Contract near Surabaya on the island of Java, has been flowing for the last six weeks and Century may not be able to halt the flow before late October, the Australian Financial Review reported yesterday.

The company is shipping a 1500-tonne drilling rig from an island near Papua. This unit will be set up several hundred metres from the well site and will drill diagonally to the original well, then seal it with cement.

Government agencies have said the blow-out at the well was triggered by poor drilling practices. It is believed that protective casing was not installed at the required depth.

The Financial Times also reported a leaked letter from joint venture partner PT Medco E&P Brantas that alleges “gross negligence” on behalf of Lapindo Brantas and the drilling contractor.

It is unclear whether Lapindo Brantas or the JV as a whole, will be liable for the compensation and clean-up costs, which are estimated to be about $A265 million and rising.

Interests in the well are Lapindo Brantas, which holds a 50% stake, PT Medco E&P Brantas (32%) and Santos (Brantas) (18%).

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