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OUR BUSINESS |
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Chronology of Banjarpanji
| Month & Event |
Technical Action Taken |
Community Action Taken |
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| MAY |
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| Banjarpanji well experiences loss of circulation after an earthquake in Yogyakarta measuring 6.2 on the richter Scale. |
The Lapindo Emergency Response Team is activated. The broach is immediately assessed. |
People in the immediate vicinity are temporarily evacuated following the detection of minor levels of H2S (hydrogen sulfide) in the surface emissions. |
| Steam, water and gas observed bubbling to the surface at three locations between 200m and 500m from the Banjarpanji exploration well at Sidoarjo, East Java. |
LBI works with local officials and selected suppliers to contain the mud by pumping drilling fluid into the well. Communication between well and mudflow could not be established and pumping drilling fluid had no impact on the developing mud volcano. |
LBI offers free medical assistance to local villagers. |
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Existing H2S monitoring is intensified. |
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| JUNE |
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Emissions of H2S stop.
Volume of mud flowing from the
broach increases to
50,000m3 per day,
covering a total area
of 110 hectares of
land: 1.1 million m3.
6,668 villagers from
Renokenongo, Siring
and Jatirejo are
displaced.
7 factories are closed,
and 45 hectares of
rice and sugarcane
fields are affected.
Mud encroaches on
the Surabaya-Gempol
toll road.
The toll road is closed. |
The Banjarpanji Emergency Task Force is formed
comprising LBI and seconded EMP personnel.
The Ministry of Environment leads an independent team to analyze and monitor the
mud, ambient air, and water.
Abel Engineering, international well control
specialists, carry out engineering work and assist
with the design of relief efforts.
The design of relief wells is assisted by external
drilling specialists.
LBI builds ponds and levees to contain the mud
and installs pumping systems. Pond walls are
reinforced. Local communities assist with pond
construction.
SATLAK is formed: a task force comprising LBI,
BPMIGAS, the Departments of Social Welfare,
Environment, and Health, and other relevant
departments of the Sidoarjo local government.
SATLAK is led by the head of the local
government.
The Indonesian Association of Geologists, in
cooperation with LBI, assesses mud extrusion,
and conducts surveys and geological and
geochemical studies of this and other mud
volcanoes in the area.
Integrated geological, geophysical and geochemical studies are undertaken by the
Institute of Technology Bandung and Institute of
Technology Surabaya in cooperation with LBI.
A number of mud disposal options are evaluated,
including piping it to the sea.
The C-5 Galaxy, the world's largest cargo plane,
was chartered to fly in a 10K Blow Out Preventer
from Singapore to be used in Snubbing Unit
operations.
SATKORLAK is formed: a task force led by
the Governor of East Java, including SATLAK
members, LBI, BPMIGAS, the Ministry of Energy
and Mineral Resources and the Ministry of the Environment.
Snubbing Unit activities commence to: Determine conditions in the well;
Confirm source of mud flow;
Staunch the flow.
The toll road is elevated by 1.5m, drains are
added, and a bridge is constructed. |
LBI establishes the following priorities:
1. The health and safety of local communities;
2. Mud flow management;
3. The curtailment of the mud flow.
LBI provides masks to students in two schools
and community members in Renokenongo, Siring,
and Jatirejo to prevent fume inhalation.
Emergency accommodation, food, drinking
water, and amenities are provided for the 6,668
displaced people, along with a monthly stipend of
Rp 300,000 per person. Amenities include school
transportation for children, and entertainment, vocational training, and religious programs.
Temporary emergency shelter is located at
Pasar Baru Porong. In cooperation with the local
Department of Education, affected schools are
relocated.
Potable water and sanitation facilities are
constructed for displaced citizens.
Free medical care is provided for all displaced
families. The Sidoarjo Department of Health
appoints 5 hospitals and 9 health centers to care
for those affected. In addition, 2 emergency
hospitals and 9 mobile units are set up.
LBI provides salary compensation for the
employees unable to work in the affected
factories.
LBI announces compensation arrangements: it
will pay damages for affected rice and sugarcane fields; rent the affected land for two years;
provide households with Rp 5 million to fund
two-year housing leases, and provide a moving
costs allowance of Rp 500.000.
The Ministry of Energy and Mineral Resources
announces three resolutions:
1. To stop the mud flow;
2. To determine suitable locations for the digging
of mud ponds;
3. To care for the victims.
LBI and the Government undertake joint
investigations into the cause of the broach.
LBI makes an initial Rp 5 billion compensation
payout to the displaced citizens through the
local SATLAK account administered by the local
government head.
Instances of loss are recorded into a database.
A media center is established to provide regular
updates. |
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| JULY |
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The volume of mud
from the broach reaches 2.5 million m3,
covering 179 hectares
of land, and develops into a mud volcano.
The air above the mud
volcano is found to
be neither toxic nor hazardous, despite its
faint odour.
The toll road reopens. |
The Snubbing Unit is unable to reach the source
of water and mud.
Worst case scenario simulations predict the areas
next likely to be affected by the mud as the
volume expands. Predictive maps are drawn.
The Ministry of Environment leads a Surface
Management Team to contain the surface mud
and divert it into purposely built settlement
ponds.
A 750 HP rig replaces the efforts of the Snubbing
Unit.
Halliburton provide integrated equipment and
services regarding the relief wells.
The location of the first relief well is prepared. Three alternate locations are prepared.
7 ponds are built with a combined capacity of
767,000m3 covering 135 hectares of land; they
are worked by 70 pumps. |
To date, LBI have safely evacuated 7,918 people.
Affected families receive two-year rental
assistance.
Studies examine the properties of the mud, and
conclude that it is:
a. Non-toxic and not hazardous;
b. Suitable for producing bricks, paving blocks,
and concrete blocks.
LBI and the environmental division of the local
government support local industry in Mojokerto
by training villagers to make bricks and
construction materials from the mud.
Local government leads a Community and Social
Impact Team to mediate between LBI and the
communities regarding remedial actions and
compensation.
A Media Relations Team is established responsible
for local community communications.
Traffic is diverted to Jl. Raya Porong while the toll
road is cleaned. |
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| AUGUST |
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The volume of mud
increases to 100,000
m3 per day, making
a total of 3.65
million m3 covering
approximately 350
hectares of land.
A retaining wall
of an emergency
containment pond is
broached affecting
the villages of Siring
and Kedung Bendo;
causing temporary
closure to the
Surabaya-Gempol toll
road and the railway.
The toll road
and railway are intermittently open.
Fishermen in Desa
Kalirejo demonstrate
against the proposal
to dump the mud
into the Madura
Strait, fearing
contamination.
Demonstrators
block the Porong
road and railway
line demanding
compensation. |
LBI, in cooperation with the army (ZIPUR), POLRI,
and the local government, repair the retaining
mud-pond wall on the same day it was broached.
Boots & Coots, well control specialists, assist with
the drilling of relief wells.
A 1500 HP drilling rig replaces the 750 HP rig, and
drills a relief well 500m from the Banjarpanji well,
350m from the broach, to identify the source of
mud and water and kill it with heavy drilling mud
and cement.
The first relief well is flooded two days prior to its
spudding date.
Land is assessed for subsidence.
Scientific Drilling, USA, provides specialist
equipment to assist with drilling and relief
efforts.
The toll road is elevated 2.5m.
Pond construction continues, bund walls are
reinforced with geotextile, 20km of levees are
built, and local irrigation canals are rehabilitated.
The installation of 18 inch and 20 inch pipes
commences to carry the mud to the sea. |
Villagers from Siring and Kedung Bendo are
safely evacuated following the broach in the mud
pond-wall.
To date, 10,860 people have been displaced.
It is announced that permanent housing will be
provided for the displaced villagers. Temporary
housing and food continues to be provided.
The fishermen are told that the water and mud
will be separated and treated before being
disposed of.
LBI tells demonstrators it will appoint a firm to
handle the technicalities of compensation for
property damage.
A sugar plantation receives Rp 592 million for
damages incurred. |
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| SEPTEMBER |
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The Surabaya-Gempol
toll road is reopened.
EMP announces
intention to divest
ownership in Kalila
Energy Limited and
Pan Asia Enterprise
Limited, which
together own 99.99%
shares in LBI, to the
Bakrie Group.
A retaining wall is
breached causing the
toll road to close.
The railway is
impaired. |
Two fatalities occur at the site as a result of
contractor heavy equipment accidents. LBI
investigates the incidents and reviews the site's
safety procedures. The families of the two men
receive compensation.
The first monitoring well spudded to assess and
monitor shallow drilling hazards.
With Presidential Decree No. 13, the National
Mudflow Mitigation Team (Tim Nas) is formed
to take operational measures in an integrated
manner to overcome the mud volcano including:
1. Sealing off the broach;
2. Mitigating the impact of the mud flow;
3. Managing social issues.
LBI is a representative member of the Executing
Team and provides technical, operational and
management assistance to support Tim Nas.
Following further evidence that the mud is not
toxic, the Government authorizes the disposal of
the mud into the sea via the Porong river. This is
determined to be the most viable and effective
solution for short term emergency relief.
Construction of a spillway commences to increase
the flow of mud into the river.
A section of the railway is elevated and the
crossing at Siring is reinforced.
The first relief well spudded.
The Government's guidelines for Tim Nas state
that drilling efforts should continue to stop the
mud flow; that practical uses for the mud should
be developed; that the mud containment area
should be strengthened; that the toll road, gas
pipeline, and railway should be relocated. |
Traffic is diverted to the Porong Road. Public
roads are rehabilitated.
A pilot project commences processing the mud
into bricks, but is discontinued after the project
site is submerged by mud.
Tim Nas's guidelines from the Government state
that families from the affected area will be
resettled as the land is no longer fit for human
habitation and is considered a ‘disaster zone'.
LBI presents results of a subsidence survey which
investigated the possibility of subsidence around
relief wells, extrusion points, the gas pipeline, the
railway and toll road.
Donations are made to affected schools. Affected
schools are relocated. |
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| OCTOBER |
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Between 100,000
– 150,000 m3 of mud
flow daily from the
mud volcano. Mud has
affected an area of
400 hectares and 8
villages.
The Surabaya-Gempol
toll road reopens.
Bapepam rejects
proposals to divest LBI
to Lyte Ltd and Bakrie
Oil & Gas. |
Geotextile is applied to mudpond levees.
To date, three water treatment units have been
installed, and 20 inch and 32 inch pipes connect
mud ponds to the Porong river.
Ecological and hydrological studies continue to
ensure that the discharge of mud is conducted in
an ecological and sustainable manner. Long term
environmentally sustainable solutions to mud
disposal are investigated.
LBI, the Institute of Technology Surabaya, and
Tim Nas work together to minimize any effects to
the ecology of the Porong river.
Local and international contractors continue with
relief well drilling efforts.
The second relief well spudded.
LBI and Tim Nas work together to mitigate the
effects of any possible subsidence in the area.
A differential GPS system is used to undertake
continuous readings of the bund walls and mud
elevations.
The total capacity of ponds built is 11,744,000m3,
covering 252 hectares of land.
Penkonindo, the Indonesian subsidiary of Van
Oord, assists LBI with mud containment issues.
1,400 army personnel assist with the
strengthening and stabilization of levee walls
and the mud containment area. |
LBI, the Institute of Technology Surabaya, and
the affected communities develop permanent
relocation plans.
To date, 3,300 families have been re-located
to safety. LBI continues to provide a monthly
stipend of Rp 300,000 per person to cover food
costs, and provides free medical assistance.
Temporary accommodation at Pasar Baru Porong
is vacated as people utilize LBI's rental assistance
to relocate to more permanent housing.
The Mindi Village Public Cemetery is relocated.
LBI receives the first insurance installment.
US$ 24 million compensation is announced for
the relocation of the community and their living
costs.
LBI continues to work with the owners of farms,
factories and small/medium enterprises, as well
as market sellers and other businesses to ensure
that their commercial enterprises are relocated
promptly and that compensation is made for any
losses.
LBI reiterates that the mud is neither toxic nor
poisonous, despite media reports.
The Ministry of Environment believes that the
mud can be disposed of safely without being
treated.
The United Nations Environment Program finds
the current impact of the incident on human
health to be low.
LBI agrees to fund a religious holiday allowance of
Rp 700,000 per worker. |
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| NOVEMBER |
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The toll road is closed.
EMP signs agreement
to sell its shares
in Kalila Energy
Limited and Pan Asia
Enterprise to Freehold
Group Limited.
Pertamina's East Java
Gas Pipeline ruptures
at KM 38 of the
Porong-Gempol toll.
The toll road collapses
and is closed
permanently.
EMP announces the
cancellation of the
divestment to the
Freehold Group. |
EMP Kangean Ltd shuts in the supply of gas to
customers following the explosion.
The disposal of mud into the Porong river ceases
following the gas pipeline rupture which caused
the mud to spread north instead of south into the
spillway.
GPS monitoring of subsidence levels around both
relief wells continues, as does monitoring of the
spillway.
Construction of a spillway pump house is
underway, and bund walls are reinforced in
anticipation of the rainy season. 5 additional
pumps are installed.
Tim Nas announces the decision to broaden the
Porong Road. |
There were 14 fatalities as a result of the rupture
in the gas pipeline. Families were given financial
support, and assistance with burial expenses.
The Ministry of Energy and Mineral Resources
declares the pipeline rupture a natural disaster.
The affected communities continue to receive
food and beverages, as well as medical care.
3,779 people affected by the pipeline rupture
are provided emergency shelter at Pasar Baru
Porong. |
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| DECEMBER |
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EMP Kangean Ltd
recommences gas
supplies after an 8-
day shut-in.
A bund wall is
broached in the
vicinity of the second
relief well and the
area is deemed
unsafe.
The Association of
National Oil and
Gas Companies
(Aspermigas)
concludes the Sidoarjo
mud volcano is a
natural disaster.
Pertamina, Kodeco
Energy and LBI
sign gas sales and
purchase agreements
with seven companies
to the total of US$ 2.8
billion.
The mud continues
to flow at a rate of
approximately 1.1
million barrels per
day. |
Minarak Labuan Co starts supporting LBI.
Subsidence continues to be monitored through
the GPS system.
Subsidence causes the Porong flyover bridge to
become unstable and it is dismantled.
By the end of the year, 40km of large scale
levees had been constructed to contain the mud,
measuring up to 30m in height, 30m across the
base width, and narrowing to 8m at the top.
LBI estimates the total costs for drilling relief
wells and mud management to be
US$ 183 million to the end of 2007. To date,
LBI has paid US$ 92 million on containing the
mud, stopping the mud flow and compensating
victims. |
Refugees continue to receive free medical care. To
date, 35,000 patients have been attended to.
LBI receives the second insurance installment.
Tim Nas proposes to buy affected land
and property from those with proper land
certification at the following rates:
* Land: Rp 1,000,000/m2
* Buildings: Rp 1,500,000/m2
* Rice fields Rp 120,000/m2
12,463 people are being given shelter in Pasar
Baru Porong, Dinas Diklat, and Balai Desa
Ketapang.
LBI announces that displaced people who meet
specified criteria have the option to be relocated
to Kawasan Sidoarjo Baru, a residential area to
be developed which will include a school, medical
clinic, sports facilities, a mosque, cemetery, and
traditional market. |
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