Gov't would bear the cost of Lapindo disaster, how generous!
As the number of people forced to leave their homes has reached 5,000 following the mudflow from Lapindo Brantas drilling activities in Sidoarjo, PT Energi Mega Persada (EMP)---Lapindo's parent company claimed that the loses inflicted will be setoff with government's profit sharing from the operation. How generous!
In a letter dated June 22 to Jakarta Stock Exchange, EMP management stated as follows:
First, the company has implemented all standard operating procedures for well control in such drilling activities.
Second, Lapindo has insured the well drilling activities and the cost related to the evacuation of the community so the losses and damages inflicted will be covered by the Insurance Company. In addition, the losses and damages inflicted will also be setoff in the distribution of profits with the government.
Unfortunately, the company didn't elaborate further the second statement. What they really meant with setoff in the distribution of profits with the government.
By law, Lapindo or EMP is just a contractor for the state under a profit sharing mechanism. Normally for oil, the contractor would get 30%, while government 70% and for gas the portion could be 15% and 85% after all the costs deducted. So, there is a possibility that Lapindo will record the losses and damages inflicted as cost component to be recovered by government that would result in a lower profit sharing for the state.
I just can't get it. The company had been secured with insurance coverage for the losses and damages inflicted, but still has to claim the losses to the state?
I was happy when Vice President Jusuf Kalla stated early this week that Lapindo's controlling shareholder (Bakrie Family) should bear all the costs inflicted, including compensations that should be paid to all the victims. Both BP Migas, Energy Minister, and VP Jusuf Kalla have to clarify, once again, that the state would not bear the losses and damages inflicted.
And on EMP's self-proclaimed SOP that has been fully implemented in the drilling, I have to say that's a way too early conclusion and very much in contrast with earlier statements made by Energy Minister Purnomo Yusgiantoro that the disaster is a pure drilling failure. So, if Lapindo had implemented all the SOPs, why the mudflow at the rate of 25 thousands cubic meter keeps on and ruin many companies activities in the region?
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In a letter dated June 22 to Jakarta Stock Exchange, EMP management stated as follows:
First, the company has implemented all standard operating procedures for well control in such drilling activities.
Second, Lapindo has insured the well drilling activities and the cost related to the evacuation of the community so the losses and damages inflicted will be covered by the Insurance Company. In addition, the losses and damages inflicted will also be setoff in the distribution of profits with the government.
Unfortunately, the company didn't elaborate further the second statement. What they really meant with setoff in the distribution of profits with the government.
By law, Lapindo or EMP is just a contractor for the state under a profit sharing mechanism. Normally for oil, the contractor would get 30%, while government 70% and for gas the portion could be 15% and 85% after all the costs deducted. So, there is a possibility that Lapindo will record the losses and damages inflicted as cost component to be recovered by government that would result in a lower profit sharing for the state.
I just can't get it. The company had been secured with insurance coverage for the losses and damages inflicted, but still has to claim the losses to the state?
I was happy when Vice President Jusuf Kalla stated early this week that Lapindo's controlling shareholder (Bakrie Family) should bear all the costs inflicted, including compensations that should be paid to all the victims. Both BP Migas, Energy Minister, and VP Jusuf Kalla have to clarify, once again, that the state would not bear the losses and damages inflicted.
And on EMP's self-proclaimed SOP that has been fully implemented in the drilling, I have to say that's a way too early conclusion and very much in contrast with earlier statements made by Energy Minister Purnomo Yusgiantoro that the disaster is a pure drilling failure. So, if Lapindo had implemented all the SOPs, why the mudflow at the rate of 25 thousands cubic meter keeps on and ruin many companies activities in the region?
Labels: Bakrie, BP Migas, Energi Mega Persada, Lapindo, Purnomo Yusgiantoro
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posted by yosef at 9:37 PM
1 Comments:
maybe it's better if u put the original wordings of that set-off clause so we can get a clearer picture of their plan.
IMHO, they can record the loss as cost as long as they also record the insurance claim. if the losses is greater than the insurance coverage, residual cost is valid to be recovered by govt.
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