Indonesia's state oil and gas company Pertamina has confessed to causing a spill that caused a wall of flames to engulf a bulker at Balikpapan.
It said a leak occurred from one of its pipelines being used to transfer crude, the Jakarta Post reported.
The oil was ignited on 31 March, possibly by a discarded fisherman's cigarette, starting a fatal blaze that damaged the 82,000-dwt Ever Judger (built 2014).
Pertamina at first said it was not responsible and added that the oil was marine fuel.
A later sample, however, confirmed that it was crude.
"We discovered that a pipeline had been dragged 120 metres from its initial location, (causing it to break)," the general manager of the Pertamanina refinery unit, Togar MP, said in a press conference.
"When the oil spill was detected, we shut down the pipeline to prevent (further spillage)," Togar added.
The company is still trying to ascertain the amount spilled.
Police have launched an investigation and the master of the bulker has been interviewed.
The death toll from the fire has now risen to five fishermen. Two were reported dead initially.
Oil reaches coastline
According to the environment and forestry ministry, the leak affected some 7,000 hectares of Balikpapan Bay.
Around 60km of coastline has been hit and residents have suffered nausea.
Video footage showed the bulker's port side blackened, with flames in its accommodation block.
ISM manager Fleet Management of Hong Kong told TradeWinds: "The Ever Judger suffered a fire from burning oil in the water.
"The fire was extinguished with the assistance of the shore tugs and the crew were safely taken ashore.
"All the crew are safe with one crew member undergoing treatment for minor burn injury in the hospital. He is recovering well. The fire caused some damage to the aft part of the vessel which is currently being assessed."
The vessel had reportedly completed loading and was about to leave with a cargo of more than 70,000 tons of coal.
It is operated by Everest Shipping of Singapore.
