Wise Solution Needed on Illegal Drilling

KOMPAS/ZULKARNAINI

Devastation marks the location of an illegal oil well that exploded in Pasir Putih village, Rautau Peureulak district, East Aceh regency, Aceh, on Thursday (26/4/2018). The resulting fire killed 22 people and severely injured 37.

IDI RAYEUK, KOMPAS — In the wake of an explosion at an illegal oil well in Pasir Putih village, Ranto Peureulak district, East Aceh regency, all oil drilling activities in the area have been temporarily shut down. The Aceh government said that it hoped all stakeholders would sit together and come up with a wise solution that would enable locals to benefit from the local oil source.

A spokesman for the Aceh governor, Saifullah Abdulgani, said on Friday (27/4/2018) that the oil well drilled by locals in Ranto Peureulak was illegal. The provincial government faces a dilemma in banning oil drilling as it is a source of livelihood for many locals. However, the oil well explosion that led to 21 deaths will be an important lesson for all stakeholders to pay more attention to the issue. Previous reports said that 22 people had died from the incident. However, the Aceh Disaster Mitigation Agency later verified the data of victims and clarified that 21 had died. “We will coordinate with the Energy and Mineral Resources Ministry, Pertamina and East Aceh regency to evaluate the incident and find the best solution,” Saifullah said.

On Wednesday (25/4), an illegal oil drilling site managed by locals in Ranto Peureulak exploded at 2 a.m. An oil spill at the site caught fire and caused the incident. Some 21 died and 39 others sustained severe burns.

Violation

Head of the Aceh branch of the Indonesian Association of Geologists (IAGI), Joni, said the oil drilling in Ranto Peureulak violated Law No. 22/2001 on Oil and Gas Mining. “No regulation allows locals to drill and mine oil and gas. Drilling can only be done by companies that manage a mining work area,” he said.

Locals may manage old oil wells owned by companies through cooperatives or region-owned enterprises. This is stipulated in Energy and Mineral Resources Ministerial Regulation No. 1/2008 on old oil well mining and business guidance.

The fact is that the oil well managed by locals in Ranto Peureulak is not a company-owned old oil well. Instead, it is a new oil well drilled by locals. Furthermore, there was no cooperative to manage the oil. Locals drill the oil using techniques similar to drilling a water well. The machines, equipment and work system are all similar to drilling water wells. Drilling is usually done up to a depth of 100-250 meters. Oil wells are located in backyards and plantations. The oil well that exploded on Wednesday was only 15 meters away from houses.

Locals usually sell their oil to agents or small-scale factories in North Sumatra at between Rp 500,000 (US$36) and Rp 600,000 per 20-liter drum. One well can produce dozens of drums of oil.

Aceh Legislative Council member Iskandar Usman Alfarlaki said the illegal oil well had been in operation since 2013. In 2014, there was a plan to issue a management permit for the well owner but no agreement has been made with Pertamina EP Rantau.

“Thousands of people in Ranto Peureulak and other regencies depend on the oil well for a living. It makes a huge amount of money and has improved locals welfare,” Iskandar said. If the oil wells are closed, many will be unemployed. Therefore, a wise solution must be found so that locals can manage the oil well while adhering to safety standards.

East Aceh regent Hasballah Thaib said that, after the explosion, all oil wells managed by locals had been shut down. Hasballah said he would coordinate with Pertamina and various parties to find a long-term solution.

On the third day after the explosion, the oil blowout had stopped and been replaced by a 50-meter blowout of water and gas. Some 198 locals whose houses are within 100 meters from the blowout spot were evacuated.

(AIN)