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Oil spill to cost Pertamina hundreds of billions of rupiah
Pertamina requires a large amount of money to rent a new rig to close a broken well and equipment to contain the oil spill.
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The Transportation Ministry is working with other institutes to contain an oil spill at a Pertamina oil and gas block in Karawang, West Java. (Courtesy of /The Transportation Ministry)
S
tate oil and gas giant Pertamina has to spend hundreds of billions of rupiah to deal with a broken well that has been spilling oil for more than a month at its Offshore North West Java (ONWJ) Block.
A source close to the matter said Pertamina needed a large amount of money to rent a new rig that would be used to close the well and equipment to contain the spill.
“The cost of stopping and overcoming the oil spill will be so enormous as a lot will be spent on renting the rig in order to make a relief well and to finance operation. And we don’t know when it will be stopped,” the source told The Jakarta Post recently
Pertamina partners with the Oil Spill Combat Team (OSCT) Indonesia, an oil spill management company, in handling the accident. The company deploys personnel to operate oil-capture equipment, such as octopus skimmers and oil boom equipment.
Meanwhile, for the mission to close down the broken well, Pertamina hired American well-control company Boots & Coots, which handled the Deepwater Horizon oil spill in the Gulf of Mexico that took 11 lives.
Boots & Coots has the crucial job of stopping the leak, which occurred at one of the three wells located beneath ONWJ’s YY oil and gas field. It is working to drill a relief well that will pave the way for the firm to inject it with cement.
The company is an affiliate of US well service contractor Halliburton, which is the subcontractor for the operation at the YY field, where oil was first expected to be produced in September.
