After destroying the oilfields, Dutch forces retreated inland, taking up positions in and around Samarinda II Airfield, while the Japanese landed and seized the also-destroyed refineries.
Shortly thereafter, an American naval task force ambushed the invasion convoy and sank multiple transport ships, but they ultimately failed to stop Japan from swiftly occupying Balikpapan.
[9] To prevent enemy landings, Dutch Navy (Koninklijke Marine) minelayers Gouden Leeuw, Eland Dubois and Soemenep laid out a barrier of 290 mines around the approaches to Balikpapan Bay between September 1939 and December 1941.
[10] Finally, to prepare for the guerrilla campaign, van den Hoogenband set up evacuation camps that could accommodate about 3,000 people around 6 to 9 km from Balikpapan.
[11][12] As the capture of Tarakan went faster than their predicted timetable, the Sakaguchi Detachment and Western Attack Unit moved up their date to occupy Balikpapan.
Still, as the postponement did not provide enough time to ready the Tarakan airfield for transport planes, the plan to attack Balikpapan using paratroopers were scrapped.
Differing sources indicate that Colijn and Reinderhoff either overpowered or deceived their captors — some accounts claim the Japanese were drunk — and managed to lock them inside a cabin.
The Dorniers returned and landed the following morning, picked up Colijn and Reinderhoff and flew them to Balikpapan, where they delivered the ultimatum directly to van den Hoogenband.
van den Hoogenband wasted no time and immediately gave the order for the demolition team to began destroying all the wells, refineries and port facilities in Balikpapan.
In the Louise oilfields located north of Balikpapan, Dutch demolition teams dismantled the well tubing, cut off to a depth of 15 meter, which were then dropped down the holes together with pump plungers and accessory rods.
The destruction efforts ended with the obliteration of laboratories, tank farms, and the power station, with chains of explosions shattering windows throughout the town.
On the next run on 22 January, two additional Dorniers joined the convoy, but only two made the landing on Wain River and evacuated 58 BPM members of the demolition team and the remaining MLD ground personnel.
When Japanese troops cut off the route, the porters ran off and the team decided to split into smaller groups that would try to reach Samarinda II at their own pace.
[24] At 17:00 on the 21 January, the Japanese invasion fleet of one light cruiser, ten destroyers, four minesweepers, three submarine chasers, three patrol boats and sixteen transport ships left Tarakan for Balikpapan.
With little reserve at his disposal, van den Hoogenband was left to choose on whether he should reinforce the Klandasan position, or attempt a break out through the Raid Unit and retreat inland.
He informed the General Headquarters in Bandung of his decision and ordered his troops to destroy the guns, searchlights and radio station and bolster the rear defenses for the breakout.
Later, even though there were no reports from them, van den Hoogenband was under the impression that 2nd Company managed to hold the pumping station and that the overvalwagen patrols have kept the retreat routes safe from Japanese troops.
On 21 January, Boise struck an uncharted reef off Kelapa Island in Sape Strait that caused a 120-ft long gash in the ship's port keel.
[41] To maintain the element of surprise, Talbot ordered his destroyers to use their torpedoes as their primary attack weapon for that night and only fired their guns when these were expended.
Guided by the burning wreck of Nana Maru and Balikpapan's blazing fires, TF 5 entered the Makassar Strait just after midnight on 24 January.
Ten minutes later, Talbot spotted the Japanese transport fleet, silhouetted by fire from the burning oilfields before them and guarded by three patrol boats, four minesweepers, and four submarine chasers.
As they reached the northern end of the transport fleet, Parrott fired three torpedoes at 03:00, hitting Sumanoura Maru and caused a tremendous explosion that sank the ship, as it was carrying depth charges and mines at the time.
[49][50] Upon reaching Batu Ampar, van den Hoogenband realized that Japanese troops had occupied defensive points leading into the pumping station.
[51] Considering that his troops were too fatigued by now, van den Hoogenband refrained from attacking the pumping station and persuaded the women and children to return to Balikpapan, as there's better chance there to obtain food.
Thick clouds and Japanese AA fire scattered the formations and the attack scored no hits, but they managed to shoot down two Mitsubishi F1M 'Pete' scout planes.
As soon as the Buffalos returned around 09:30, 27 Mitsubishi G4M 'Betty' bombers bombarded Samarinda II from a height of 21,000 ft (6,400 m), making them impervious to Dutch AA defenses.
Bad weather forced four of them to turn back to Malang along the way, with three of the four eventually making emergency landings on the beach of Madura Island due to lack of fuel.
Even though one of them had to turn back due to bad weather, at 13:00 the bombers scored hits on the seaplane tender Sanuki Maru, forcing it to withdraw to the Makassar Strait.
[67] After completed occupying Balikpapan's urban area the previous day, the Sakaguchi Detachment began mopping up any remaining Dutch resistance and setting up Manggar Airfield on 26 January.
Although the Dutch had thoroughly destroyed the refineries and other supporting facilities, Japanese defense details managed to repair the oilfields and kept them running from June 1942 until August 1943, when the first Allied air raids began bombarding them once more.