Pertamina, the state-run company of Indonesia, has admitted that its cracked underwater pipeline was the reason for the oil spill off the coast of the port city of Balikpapan on the island of Borneo.

The fire, caused by spillage, had killed four people.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The oil had spread to an area of around 12km² last weekend, following which authorities rushed to contain the spill off Balikpapan.

Pertamina’s Balikpapan refinery general manger Togar MP was quoted by Reuters as saying: “The pipe was found in a broken condition. There were external factors that caused that.

“We are still calculating the volume of the leak and losses.”

“The pipe was found in a broken condition. There were external factors that caused that.”

This pipeline is located 25m under the sea. Some initial tests indicated that the spilled oil was marine oil used in boats. This led to a belief that the spill could have been caused by a bulk coal carrier, which was transporting coal from Indonesia to Malaysia.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

A government official is now unclear what had caused the leak. Energy Ministry’s oil and gas director general Djoko Siswanto was quoted by the news agency as saying: “It could be that the pipeline is rusty or an anchor hit it.”

Balikpapan, a major mining and energy hub, has a population of 700,000. Residents are struggling to deal with the toxic smoke after the spill caught fire. Almost 1,200 residents complained of nausea, vomiting and breathing problems and the city officials distributed masks.

Indonesia had declared a state of emergency on Monday following the oil spill and cautioned residents to stay off the coast as this area was prone to fires.