Sidoarjo Mud Flow Momogi

16
Sidoarjo Mud Flow Momogi Syndicate

Transcript of Sidoarjo Mud Flow Momogi

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Sidoarjo Mud Flow

Momogi Syndicate

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Enviromental Ethics

Part of environmental philosophy which considersextending the traditional boundaries of ethics fromsolely including humas to including the non-humanworld.

Shallow ecology Deep Ecology

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Sidoarjo Mud Flow

2004

2008

2009

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Sidoarjo Mud Flow

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Main Issue

Lusi  mud volcano at Porong (since May 2006)

Blowout of a natural gas well drilled by PT Lapindo Brantas

PT Lapindo Brantas by a distant earthquake

August 2011 10,000 m³ of mud/day (peak : 180,000 m³ ofmud/day ) with 15 bubbles around the gush point

Expected the flow will continue for the next 25 to 30 years

Flooding regularly disrupts local highways and villages (5 -14.5m/year) and further breakouts of mud are still possible.

Mud volcano is collapsing under its own weight calderaformation

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Geological Setting

• Lying in the east-westdirection, filled withoverpressure marinecarbonates and marinemuds.

• Forms an invertedextensional basin geologically active since thePaleogene epoch.

• Some of the mud escapesto the surface to form mud

volcanoesSangiran Dome(200 km west of Lusi)

Island of Java

• Significant amount of oil andgas reserves

• Brantas Production SharingContract (PSC) Wunut,Carat and Tanggulangin.

• Concession are for mineralexploration 2006 : Santos(18%), MedcoEnergi (32%)and PT Lapindo Brantas(50%)

MineralContent

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Mud Eruptions Chronology 

• A magnitude of 6.3 earthquake occurred inYogyakarta (250 km South West fromSidoarjo)

• Seven minutes later a mud loss problem inthe well was noted.

May27,

2006

• PT Lapindo Brantas targeted gas in theKujung Formation carbonates in the

Brantas PSC area by drilling a boreholeBanjar-Panji 1 exploration well• There are two stages of drilling, first is

500-1,300 m deep then 2,834 m

May

28,2006

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Mud Eruptions Chronology 

• Steam, water and mud began erupting 200 m away from thewell

May29,2006

• Two further eruptions occurred about 800 –1000 m northwestof the well, but these stopped on June 5, 2006

June2-3,2006

• During eruptions H2S was released and local villagersobserved hot mud, thought to be at a temperature of around 60°C (140 °F)

• Eruptions stopped

June5,

2006

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Investigation : Cause

What triggered the eruption and whether the event was a natural disaster or not? 

PT Lapindo Brantas earthquake that triggered the

mud flow eruption, and not their drilling activities

If “natural” cause: Government of Indonesia coverthe damage.

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Investigation : Cause

The UK team of geologists

concluded that theearthquake was not merely coincidental.

In June 2008, a report released by British, American,

Indonesian, and Australian scientists concludedthat the volcano was not a natural disaster, but theresult of oil and gas drilling

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Investigation : Legal Case

MedcoEnergi (June 5, 2006) accused PT LapindoBrantas of breaching safety procedures during thedrilling process : "gross negligence" to the operatorcompany for not equipping the well bore with safetysteel casing.

Jusuf Kalla (Vice President) PT Lapindo Brantasand Bakrie Group (owner) must compensatethousands of victims affected by the mud flows.

A criminal investigation was then started againstseveral senior executives of the company becausethe drilling operation has put the lives of local people

at risk.

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Investigation : Legal Case

Bakrie Group (Aburizal Bakrie, Minister of Welfare at thattime) trying to distance themselves from the Lusiincident announced would sell PT Lapindo Brantas to an offshore

company for only $2 blocked by Indonesia's Capital MarketsSupervisory Agency blocked the sale

try to sell to a company registered for $1 million in the VirginIslands (Freehold Group) halted by the governmentsupervisory agency for being an invalid sale. 

Lapindo Brantas asked to pay about 2.5 trillion rupiah

to the victims and about 1.3 trillion rupiah as additionalcosts to stop the flow.

 Some analysts predict that the Bakrie Group will pursuebankcruptcy to avoid the cost of clean up, which couldamount to US$ 1 billion.

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Investigation : Legal Case

(August 15, 2006) the East Java police seized theBanjar-Panji 1 well to secure it for the court case.

After investigations by independent experts :

The mud flow was an "underground blow out” triggered by

the drilling activity The steel casing lining had not been used which could

have prevented the disaster.

Thirteen Lapindo Brantas' executives and engineers

face twelve charges of violating Indonesian laws.

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Revived Controversy 

Oct 2008 PR agency in London stated that drillingcould not have been the trigger of LUSI.

Hearing process is made by 72 scientist:

1. 42 scientist conclude that drilling was entirelyresponsible1

2. 13 felt that combination of drilling and earthquakewas to blame.

3. 3 people felt that earthquake was solelyresponsible

4. 16 geoscientist believed that evidence wasinconclusive

Feb 2010, Britain’s Durham Univ experts find newclues that the catastrophe was caused by human

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Current Status

June 2009• The residents had received less than 20% of the suggestedcompensation.

April 2010• new mud spot : Porong Highway & Railway

mid-2010

• reimbursement payments for victims have not been fullysettled, and legal actions against the company have stalled.

2011

• Lapindo Brantas published an independent Social ImpactReport

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Lesson Learned

We always learn from our mistakes, and the engineeringfraternity has always incorporated lessons learned fromengineering disasters to at least avoid the same kind offailure again. For new types of failures, we can alwaysstay positive that more lessons are learned at the cost of

less damage. Pemerintah dianggap tidak serius menangani kasus

luapan lumpur panas ini. Masyarakat adalah korban yangpaling dirugikan, di mana mereka harus mengungsi dan

kehilangan mata pencaharian tanpa adanya kompensasiyang layak.

PT Lapindo Brantas Inc sendiri lebih sering mengingkariperjanjian-perjanjian yang telah disepakati bersama

dengan korban.