By OGJ editors
HOUSTON, Oct. 19 -- Santos Ltd. reported that Boots & Coots International Well Control Inc. has started drilling a relief well near the Banja-Panji-1 gas well in Sidoarjo, East Java.
Mud began flowing on May 29 about 200 m from the Banjaa Panji 1 well, drilled to 2,833 m. The mud continues to flow at an estimated 100,000 cu m/day.
The mud flow, which involves hydrogen sulfide, has inundated at least eight villages, displaced thousands of villagers, ruined crops, and cut off roads.
Banjar Panji 1 targets Miocene Kujung formation reefal carbonates on the eastern margin of Wunut gas field, which produces from Pleistocene volcaniclastic sand.
The underground blowout occurred at about 2,700 m, just above a high-pressure water zone. A total of 1,000 acres reportedly was under several meters of mud.
A group of international contractors, including Boots & Coots, spudded a relief well about 500 m south-southwest of the Banjar Panji. A second relief well is planned from the north-northwest.
Santos refuses to discuss the possible cause of the well's blowout because of an investigation being conducted by BPMigas, Indonesia's oil and gas regulator.
Well operator Lapindo Brantas Inc. initially blamed the mud flow on an earthquake in central Java, but the National Disaster Study Centre reported the earthquake barely affected east Java.
Lapindo estimates the total costs for drilling relief wells and mud management to be $180 million, which "includes assumptions and may require further adjustment when estimates relating to the cost of long-term mud disposal options, proposed cost of infrastructure relocation, and costs relating to unrealized third-party claims are known," Lapindo said in a statement.
"With the [mud] flow continuing, the complexity of the event, and the dynamic nature of the ongoing work, it is not possible to accurately estimate a total rectification cost at this time," the company said.
Lapindo has 50% interest in the Brantas production-sharing contract. Partners are PT Medco E&P Brantas, with 32% interest, and Santos Brantas Pty. Ltd., 18% interest.
