The United Nations Environment Program and AusAid have released a study that estimates the cost of the East Java clean-up cost to Santos could be as much as 10 times higher than has been reported to the Stock Exchange.
The front page of the Financial Review reports today that the new estimated clean-up cost is now in the order of A$830 Million.
Santos has not admited liability for the drilling accident but they did report to the stock exchange that they had made a provision of A$88Million for the clean-up.
Santos has not admited liability for the drilling accident but they did report to the stock exchange that they had made a provision of A$88Million for the clean-up.
The drilling accident that occured in 2006; it resulted in a “mud volcano” that has now affected 1800 hectares of East Java.
Over 75,000 people were affected by the accident and none have yet been paid compensation.
The new clean up estimate is based on a solution that would transport the mud 14 Km to the ocean and create a new wetland.
Over 75,000 people were affected by the accident and none have yet been paid compensation.
The new clean up estimate is based on a solution that would transport the mud 14 Km to the ocean and create a new wetland.
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