Caltex, authorities still at sea over security problems<\/p>\n
By Mochammad N. Kurniawan<\/p>\n
DURI, Riau (JP): Although security problems have been plaguing
\noil firm PT Caltex Pacific Indonesia (CPI)'s operations in Riau
\nprovince for several years now, the company and the local
\nauthorities are still in the dark as to how to resolve them.<\/p>\n
Both parties seem to prefer pinning the blame on each other as
\nregards the responsibility for coping with increasing theft from
\nCPI's oil fields, and in dealing with the various compensation
\nclaims made by local people.<\/p>\n
Vice President for CPI's Bekasap Sub Business Unit (SBU)
\nSuwito Anggoro said on Tuesday that CPI was not satisfied with
\nthe law enforcement measures taken by the local authorities.<\/p>\n
\"The local police should be more active in finding the
\nmasterminds and bringing them to court for punishment,\" he told
\nreporters during a visit to the oil fields.<\/p>\n
He said that incidents of theft in the 4,000-square-kilometer
\nBekasap SBU had increased threefold to 1,800 cases between
\nJanuary and mid-August compared to the same period last year.<\/p>\n
The equipment which had been stolen included cables, pipes,
\nmeasuring devices and insulating materials, he said.<\/p>\n
The compensation demanded by local people in relation to
\nvarious land disputes and alleged pollution had also reached
\nbillions of rupiah, he added.<\/p>\n
The incidence of theft and land disputes had been on the rise
\nover the past several years following the downfall of the
\ncountry's former authoritarian president Soeharto in mid-1998.<\/p>\n
According to Suwito, the company had increased the number of
\nits security personnel to about 1,600 by contracting the private
\nsecurity firm 911 to help protect its oil fields. The results,
\nhowever, had not been optimum so far due to the vast area
\ninvolved and the limited powers of the security guards.<\/p>\n
\"It's still difficult to cope with the problem. Our area is
\njust too large,\" Suwito said.<\/p>\n
However, he admitted that CPI had not allocated a specific
\nbudget for combating the theft problem and other disturbances.<\/p>\n
CPI has four operating sites in Riau province covering an area
\nof about 30,000 square kilometers, namely the Rokan, Coastal
\nPlain Pekanbaru (CPP), Mountain Front Kuantan (MFK), and Siak
\nblocks.<\/p>\n
CPI established SBUs in 1995 with each one being responsible
\nfor the management and security of one oil block or a part of a
\nblock.<\/p>\n
The SBUs include Bekasap, Duri, Minas, which operates the
\nRokan block, and Rumbai, which operates the Siak block.<\/p>\n
The Duri SBU produces about 235,000 barrels of oil per day
\n(bopd), Bekasap about 210,000 bopd and Minas 130,000 bopd.<\/p>\n
In July this year, the Bekasap SBU suffered potential losses
\nof about US$70 million due to a drop in oil production of between
\n10,000 and 15,000 barrels per day (bpd) due to security problems,
\nSuwito said.<\/p>\n
The company also suffered realized losses of $1 million due to
\ndamage to equipment, he added.<\/p>\n
Suwito warned that if the local authorities failed to take
\nserious action regarding the security problems, not only the
\nlocal government would suffer but also the whole country as
\nwould-be foreign investors would be reluctant to put their money
\ninto Indonesia.<\/p>\n
Meanwhile, Bachtiar A. Fatah, head of operations for the Duri
\nSBU, said that his SBU was facing similar problems.<\/p>\n
\"We have done our best to safeguard our fields but the
\nincidence of theft continues to rise,\" he said.<\/p>\n
He said that about 611 theft cases had occurred between
\nJanuary and mid-August in the area, causing a loss in production
\nof about 25,000 bopd.<\/p>\n
He added that the Duri SBU had spent $15 million on repair
\nwork and another $1.4 million on the replacement of lost
\nmaterials.<\/p>\n
Separately, Iptu H. Azrin Pangkat, the chief of Tanah Putih
\ndistrict police in Rokan Hilir regency, admitted that security in
\nthe area was his responsibility, but warned Caltex not to solely
\nrely on the police due to personnel shortages affecting the
\nforce.<\/p>\n
\"We must be realistic here. With only 18 officers, how can we
\ncover all 19 large villages in the area and the CPI oil fields,\"
\nhe said.<\/p>\n
Azrin said that the police would adopt a persuasive approach
\nin dealing with the local people and the seemingly unrealistic
\nclaims they were laying at Caltex's door.<\/p>\n
\"If we make a mistake, we're afraid that the local people will
\nburn down our station,\" he said.<\/p>\n
Meanwhile, Abdul Wahab, secretary of Tanah Kote district in
\nRokan Hilir regency, said that many of the claims against CPI
\nwere being made by unemployed local people.<\/p>\n
Therefore, he urged the company to provide more jobs for local
\npeople and establish a training center to increase the level of
\nskills in the area.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/caltex-authorities-still-at-sea-over-security-problems-1447893297",
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