Oil and gas drilling company Lapindo Brantas Inc. said on Friday it has agreed to provide Rp6.8 billion in compensation to relocate 11 plants covered by mud from its leaking gas drilling well in the East Java area of Porong.
The agreement reflected Lapindo`s commitment to compensating the losses suffered by the plants that had to cease operating due to mudflows, head of the company`s public relations service Yuniwati Teryana said.
The decision on the compensation was made after the company`s legal team had surveyed the condition of the 11 plants and studied carefully their claim for a compensation, she said.
The legal team came to the conclusion that the 11 plants deserved a compensation, she said.
Incessant mudflows coming out of the leakage in Lapindo Brantas Inc.`s gas drilling well has been going on since May 29.
The mudflows covered thousands of houses, tens of school buildings and at least 15 factories and prompted the evacuation of around 9,000 people.
So far police have named nine suspects in the mudflow case. (*)
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