Beneath the stones, the beach


The company and shareholders

The Banjar Panji-1 exploration well is located in the Brantas Production Sharing Contract (PSC) area in Sidoardjo district, East Java province, and is operated by Lapindo Brantas, which has a 50% working interest in the contract.The others shareholders are PT Medco E&P Brantas and the Australian company Santos Ltd.

The well drilling was subcontracted to a company called PT Medici Citra Nusantara Lapindo's parent company was, until recently, Energi Mega Persada, part of group of companies controlled by social affairs minister Aburizal Bakrie . But Lapindo was sold for US$2 in September to Lyte, a company registered in Jersey, also owned by the Bakrie Group, sparking fears that it would file for bankruptcy to avoid paying the huge costs associated with the Banjar Panji 1 disaster.

In its October update, the company estimated the total costs of relief well drilling and mud management to be US$180 million, subject to revision once other costs are known, including the costs of long term mud disposal and proposed infrastructure relocation.Total gross costs to date are estimated at US$56 million.

Santos, the Australian company with an 18% share in the Brantas PSC, holds others interests in East Java: a 40.5% interest in the Sampang PSC, which contains the giant Jeruk and Oyong fields, a 67.5% interest in the Madura Offshore PSC which contains the Maleo field, a 40.1% interest in the Nth Bali 1 PSC, as well as an 18% interest in the producing Brantas PSC.

New York Times 6/Oct/06; Santos
0, accessed 9/Nov/06)