Keep Us Strong WikiLeaks logo

Currently released so far... 51122 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Browse by classification

Community resources

courage is contagious

Viewing cable 06JAKARTA8250, East Java: Update - Mudflow Continues Unabated,

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #06JAKARTA8250.
Reference ID Created Released Classification Origin
06JAKARTA8250 2006-07-01 07:28 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Jakarta
VZCZCXRO6832
PP RUEHCHI RUEHDT RUEHHM
DE RUEHJA #8250/01 1820728
ZNR UUUUU ZZH
P 010728Z JUL 06
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC PRIORITY 6603
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEHBY/AMEMBASSY CANBERRA 9683
RUEHWL/AMEMBASSY WELLINGTON 0927
RHHMUNA/HQ USPACOM HONOLULU HI
RUEHGP/AMEMBASSY SINGAPORE 5368
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHDC
ZEN/AMCONSUL SURABAYA
UNCLAS SECTION 01 OF 03 JAKARTA 008250 
 
SIPDIS 
 
DEPT FOR EAP/MTS AND EB/ESC/IEC 
DEPT PASS OPIC, EXIM, TDA 
DOE FOR CUTLER/PI-32 AND NAKANO/PI-42 
COMMERCE FOR USDOC 4430 
 
FROM AMCONSUL SURABAYA 1771 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: ECON EINV EPET PGOV ID
SUBJECT: East Java: Update - Mudflow Continues Unabated, 
Closes Toll Road, Threatens East Java Gas/Water Supplies 
 
REF:   Jakarta 7839 
 
1. (SBU) SUMMARY: More than a month after a gas well 
ruptured just outside of Surabaya, East Java, the mudflow 
continues unabated (Reftel).  The good news is, the mud is 
most likely not harmful in the long term (even if a bit 
smelly in the short term) and that eventually, they should 
be able to contain the well.  The bad news is, the mudflow 
has increased in volume, the response by the responsible 
firms and local and national government has been 
insufficient and has failed to address even the more 
pressing issues (like the 3 feet of mud that have now cut 
off the main north-south toll road), cost estimates to fix 
the well are in the USD 100 million range, commercial and 
economic losses are mounting, and the situation is now 
threatening the main liquefied natural gas (LNG) line for 
East Java.  End Summary. 
 
So What Actually Happened? 
------------------------- 
 
2.  (SBU) As reported Reftel, PT Lapindo Brantas, was 
drilling an exploratory gas well in an area 12 miles south 
of Surabaya.  The well fractured and has been spewing hot 
mud since the end of May.  PT Lapindo Brantas is owned by 
the holding company of Minister of Social Welfare Aburizal 
Bakrie and his brother.  Lapindo Brantas, the operator of 
Brantas PSC and 50 percent interest holder, is a subsidiary 
of local oil firm PT Energi Mega Persada, which is 
controlled by the Bakrie Group.  Local oil company Medco 
Energi holds a 32 percent interest in the block and 
Australia's Santos Limited holds the remaining 18 percent. 
PT Lapindo Brantas maintains that it followed all regulatory 
procedures, standard drilling procedures and had a 
government approved environmental impact permit.  The firm 
also tried to lay blame for the accident on the May 27 
Yogyakarta earthquake.  The police investigation underway 
has heard expert testimony that this accident was completely 
unrelated to the earthquake.  According to our contacts and 
preliminary reports from the police investigation, Lapindo 
Brantas apparently did not conduct sufficient geological 
research (there's a question whether they actually did any 
geological surveys at all) and drilled on a known fault 
line.  They used old, worn out equipment which was unable to 
withstand the stresses of drilling a high pressure well. 
They did not use sufficient casings for the well 
(international standards), and the drilling crew and 
supervisors all had no previous experience in drilling a 
high pressure well.  The final nail was, once the well 
fractured, the crew appeared to panic, immediately removed 
the drilling equipment and broke the POB valve in the 
process, eliminating the only fast way of trying to control 
the well.  The crew, according to police reports, then 
simply left the site. 
 
The Good News 
------------- 
 
3.  There is not much good news but at least it appears the 
mud is not "toxic."  ConGen Surabaya Pol/Econoff spoke with 
an overseas well containment expert brought in to assist. 
The mud consists of dissolved young shale rock and may 
contain trace amounts of heavy metals and phenols but not in 
dangerous levels as has been reported in the press.  Massive 
amounts of salty water (millions of gallons) is shooting up 
from the earth and dissolving the sedimentary rock back in 
to its previous form.  (Hydrogen Sulfide gas was initially 
emitted from the fissure but that has apparently ceased.) 
Also, the well-containment expert is confident that the well 
can be contained but estimates a   minimum of 4 months 
unless they are lucky and the well stops on its own. 
 
The Bad News 
------------ 
 
4.  The mudflow is much larger than previously reported and 
 
JAKARTA 00008250  002 OF 003 
 
 
there is as yet no strategy on how to contain it, much less 
remove it.  The flow has covered an area estimated 
approximately the equivalent of 1600 football fields. 
According to our contact, who has been out at the site for 
the last few weeks, 25,000 cubic meters per day grossly 
underreports the amount of mud shooting out of the fissure. 
The mud has built up to a "mountain" 25 to 30 feet above 
grade at the fissure point and is spreading rapidly although 
at a slower rate because the area is larger.  It has now 
completely cut off the main north-south toll road with mud 3 
feet deep, severely disrupting commerce in East Java.  To 
date, efforts to contain the mud have been insufficient, 
consisting mainly of small dam walls which are being 
ruptured on a daily basis and rebuilt with no engineering 
plan or input.  Outside experts have helped PT Lapindo 
Brantas draft a organizational action plan to deal with the 
problem but after 3 weeks, the firm has yet to fill 10 
percent of the positions. 
 
5.  There may in fact be no way to contain a flow of this 
size; our contacts have recommended that mud be diverted via 
a channel to where it would do the least amount of damage. 
One option would be to have it empty into the Porong river 
where it would theoretically wash out to sea but local 
officials and environmentalists are cautious about any 
solution that could endanger the river or water supply for 
the greater Surabaya area.  So far, Lapindo Brantas has 
focused most of its containment efforts on preventing the 
mud from flooding two new high-end housing developments, 
leaving the local village residents to fend for themselves. 
That strategy may lead to an increase in the number of local 
residents forced to evacuate their houses/villages.  Our 
contacts think the numbers could rise from the current 4,000 
displaced to 10,000 in the next few weeks. 
 
6.  The well is emitting brackish, salty water at very high 
temperatures to dissolve the shale into mud.  This water is 
breaching the local underground water table, tainting all 
wells in the area (for most of the villages and residents, 
well-water was the only potable water available.)  This is 
happening over a much larger area than the radius of the mud 
flow itself. 
 
7.  Estimates of cost to fix the well keep rising and will 
likely reach at least USD 100 million (far exceeding PT 
Lapindo Brantas assets.)  This figure does not include any 
of the economic damages to local companies, residents, or 
the toll road. Lapindo Brantas has been very slow in 
approving necessary measures to stop the mudflow, especially 
if they are costly.  According to our contacts, officials 
from Lapindo Brantas were unhappy when their insurance 
company started discussing culpability during a recent 
meeting.  It appears, according to our contacts, that human 
error, poor decision making and outright incompetence all 
contributed to this accident.  Preliminary police 
investigations also cite human error and negligence.  If 
Lapindo Brantas insurance claim is denied due to gross 
negligence and willful ignoring of standard operating 
practices, they could be headed for bankruptcy and try to 
stick the government with the bill. 
 
The Very Bad News 
----------------- 
 
8.  If it weren't bad enough that the well was drilled in 
the middle of a heavily populated area, within 40 yards of 
the main road artery for East Java, on a geologic fault, 
with faulty equipment and inexperienced staff, it turns out 
the main liquefied natural gas (LNG) line for East Java runs 
between the fissure and the toll road.  This is a large line 
under 1,200 pounds of pressure that carries virtually of the 
LNG in East Java which feeds all of the power generation 
plants in this province.  Since the "mud monster" is 
essentially hot pressurized water scouring out the drilling 
channel 10-30 yards away from the pipeline, according to 
experts we talked to, there is a significant risk that 
 
JAKARTA 00008250  003 OF 003 
 
 
action could undermine the pipe bed.  In a worst case 
scenario, the weight from the earth on top and the heavy 
equipment that PT Lapindo Brantas is running over the area 
could cause the pipe to fracture disrupting the gas flow 
throughout East Java.  PT Lapindo Brantas has been 
unreceptive to suggestions that they bypass that area due to 
the expense involved in construction an alternate access 
route. 
 
Comment 
------- 
 
9.  (SBU) So far, the police investigation has focused on 
the actions of the immediate players, i.e. PT Lapindo 
Brantas, and is already finding plenty to fault.  It won't 
get really interesting though until the police broaden their 
investigation to authorities who issued the permits, 
including officials in the Energy and Mineral Resources 
Ministry and the Oil and Gas Regulatory Body (BP Migas), and 
national or local environment ministry offices.  Our local 
contacts all ask the same question - how did they  get 
permits to drill and/or who was making sure they followed 
the rules?  However, few in East Java will give you odds on 
that happening anytime soon.  Although Minister for Social 
Welfare, Aburizal Bakrie, who owns a controlling interest in 
the well through the Bakrie Group, initially acknowledged 
responsibility for damage claims, more recently, his 
response has been "talk to my brother, it's his company." 
 
PASCOE