“In addition, as the mud and water flows continue, clean up operations are unable to commence in earnest,” the company said on Friday.

“Accordingly, an accurate quantification of damage is not possible at this stage and any speculation is premature."

The well is being drilled 38km southwest of the East Javanese city of Surabaya in the Brantas Production Sharing Contract.

Gaseous mud and water have been rising to the surface from cracks in the ground near the well.

The mud, which looks much like wet cement, has buried paddy fields, three villages and a major road, displacing thousands of people.

The Indonesian media has alleged negligence on the part of the operator, Lapindo Brantas.

Santos is not involved in operating the well. The company has been in Indonesia since 1993, working without major incident.

The PSC partners include Lapindo Brantas (operator 50% equity), PT Medco E&P Brantas (32%) and Santos (Brantas) Pty Ltd (18%).