The LAPINDO Mud Disaster

a presentation by

UGURU Paul
Jiexin DENG
ALEJI Amos
Rusman RIANTO
EDEKE Lawrence
INDONESIA – An overview
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 INDONESIA – An overview
v Largest Archipelago country, located in Southeast Asia with a
population of over 228 million.

v Major islands: Kalimantan, Sumatra, Papua, Sulawesi and Java

v Main natural resources: Petroleum, Natural Gas, Coal, precious

metals, timber and fertile soils.

v 35% of the GDP is from the industrial sector most of which is

petroleum, natural gas and mining.

v Sidoarjo is a regency in Eastern Java and home to the Banjar Panji 1

Gas Well: THE MOST ENVIRONMENTALLY DESTRUCTIVE OIL AND GAS
WELL EVER DRILLED! (www.indonesia-ottawa.org) .
 HS & E Issues In Developing
Countries

v Absence of adequate National legislation

v Non/poor implementation and enforcement of

existing legislation

v Lack of transparency in reporting industrial

accidents e.g. RIDDOR

v Negligence and “poor operating standards” by

operators (both Local and International)
 The LAPINDO Mud Disaster
v Banjar Panji 1 Gas well is operated by PT
Lapindo Brantas Inc. on behalf of Santos,
Australia’s 3rd largest O&G company and Medco
Energi of Indonesia.

v Had a depth of over 3,000m but the company

failed to install casing in line with Indonesian
drilling guideline

v Pressurized (up to 8000 lbs), Hot (≈70o C), Toxic

and viscous mud started seeping into the well
and to the land surface @ 1800m depth

v Cement plugs were inserted to cease the mud

flow but this forced the high pressured mud
forcing its way to the surface about 180m near
the well

v This was the beginning of DISSASTER!

Cross section of - BANJAR PANJI 1 Gas Well

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And the disaster continues ...
v Since May 2006, Banjar-Panji 1 gas well
has emitted ≈ 150,000 m3 of hot,
viscous and toxic mud

v Submerged approx. 6km of land

http://www.foeeurope.org/

v Mud found to contain an inestimable

cocktail of benzene, toluene, xylene,
heavy metals, NH3, SO2, phenol,
steam, H2S, CH4 & H2O! (
www.energytribune.com)

v Over 1,500 people affected by H2S

poisoning

v More than of 15,000 people displace

from 11 villages
The Disaster in U$D
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One action - Multiple IMPACTS!

v Environmental impacts
v Health and Safety impacts
v Economic impacts
v Social impacts
Impact on the ENVIRONMENT
v Loss of biodiversity
v Flora disorder
v Fauna disorder
v Soil microorganism disorder

v Air pollution:
v toxic gas emission such as CH4,
SO2, CO2, NO2, NH3 and H2S

v Water pollution

v Land Contamination
 Impact on HEALTH & SAFETY
v Physical
v High risk of accidents
v Ill health problem due to pollution of air and water
v Acute effect:
v Respiratory tract irritations (from nose to bronchus)
v Cough
v Toxic gas emission causes headache, unconsciousness,
disorientation and death
v skin irritation
v gastritis due to psychogenic effects.
v Chronic effect: Leukemia & Cancer
v Psychosomatic:
v Emotion
v Frustration
Impact on HEALTH & SAFETY

SOURCE : Government Lapindo Team

 ECONOMIC Losses
v Job loss & loss of investment from
25 companies shut down

v Loss of revenue to governments

v Loss of farm resources:

Largest shrimps farm & Rice paddies

v Loss of rent on Lands and houses

v National losses due to infrastructure breakdown

v Loss of revenue from international trade (export & import)

 SOCIAL Impact
v Human displacement
v 13,000 people displaced

v It has inundated 11 towns

v 30 schools, 25 factories

v Family dislocation
v Communal Conflict
What should have been done?
 Some Suggestions ...
v Revise all legislation related to the exploration and exploitation of natural resources,
and make “sustainability”, health, safety, environment and welfare of the host
community the first and foremost priorities (WALHI).

v Put in place a “coherent”, “adequate” and “international” legal framework1 for

HS&EM in the mining industry

v Institute strict monitoring, compliance and enforcement mechanism backed by a

technical and sound legal framework (PPC) e.g. Polluter Pays Principle

v Adopt and ensure compliance of “International Best Practice” for foreign investors and
their local counterparts.

v Create an increased awareness about the Environment, Health and Safety in both
public and corporate domain.

v An endless list...
... and the disaster continues up till this
day!

Thank you for

listening!