Lapindo disaster, quo vadis?
Few days ago, energy minister Purnomo Yusgiantoro said government is considering stern sanction on Lapindo Brantas Inc for the environmental disaster in Sidoardjo, East Java. The maximum penalty will be revoking the company's license.
Lapindo's parent company, the listed PT Energi Mega Persada Tbk, responded quickly with a letter to Jakarta Stock Exchange (JSX) yesterday saying the revoking of such license should be based on production sharing contract (PSC) signed by the company and government.
It's interesting to see where the government will take the case. Revoking the license might seems perfect, but real politic is unlikely to support that. Worse, under the PSC terms, government should share the burden through cost recovery scheme. Lapindo reiterated in the letter to JSX yesterday that the drilled well which caused the unstoppable hot mudflow falls into production well category, so the cost incurred is recoverable.
But environmentalists or the victims of the disaster, who might be upset, could file a class action lawsuit in US court since Lapindo Brantas Inc is a US-registered company.
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Lapindo's parent company, the listed PT Energi Mega Persada Tbk, responded quickly with a letter to Jakarta Stock Exchange (JSX) yesterday saying the revoking of such license should be based on production sharing contract (PSC) signed by the company and government.
It's interesting to see where the government will take the case. Revoking the license might seems perfect, but real politic is unlikely to support that. Worse, under the PSC terms, government should share the burden through cost recovery scheme. Lapindo reiterated in the letter to JSX yesterday that the drilled well which caused the unstoppable hot mudflow falls into production well category, so the cost incurred is recoverable.
But environmentalists or the victims of the disaster, who might be upset, could file a class action lawsuit in US court since Lapindo Brantas Inc is a US-registered company.
Labels: Energi Mega Persada, Lapindo, Purnomo Yusgiantoro
READ MORE!!!
posted by yosef at 10:44 AM
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