Caltex resumes operations at three burned oil wells<\/p>\n
SINGAPORE (Dow Jones): PT Caltex Pacific Indonesia has
\nrestarted pumping operations at three of the four oil wells
\nknocked off line Nov. 6 in Riau province by fires set by local
\nprotesters, Robert Galbraith, senior vice president of CPI's
\nSumatra operations, told Dow Jones Newswires on Wednesday.<\/p>\n
The four wells in the Batang oil field together produced about
\n300 barrels a day of crude, although initial estimates of the
\nproduction loss were in a range of 500-1,000 barrels a day.<\/p>\n
Galbraith said three of the four wells have started pumping
\nagain. The fourth well accounts for 75-125 b\/d.<\/p>\n
The fourth well should be back online "in the next day or so,"
\nhe said.<\/p>\n
The cost of the damage to the wells is about US$210,000, while
\nthe estimated cost of lost production has been estimated at
\n$50,000.<\/p>\n
The fires were set by a farmers' group upset about the level
\nof compensation for CPI's use of the land.<\/p>\n
CPI's managing director Gary Fitzgerald said last week that
\nthe owners of the land have been compensated, but that users of
\nthe land were demanding the same level of compensation.<\/p>\n
Part of the compensation to the landowners was to be passed on
\nto the users of the land, he said, and the conflict is actually
\nbetween the owners and the users of the land.<\/p>\n
CPI is caught in the middle, he said.<\/p>\n
Galbraith said CPI's operations continue to be disrupted on a
\ndaily basis by "sporadic blockades," which have cost CPI about
\n30,000 b\/d in lost production this year.<\/p>\n
CPI's current production stands at about 695,000 b\/d, he said.<\/p>\n
CPI has been the target of recurring protests at its Riau
\noperations since April, with local groups seeking employment or
\nbetter job benefits.<\/p>\n
CPI is a joint venture of Chevron Corp. and Texaco Inc.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/caltex-resumes-operations-at-three-burned-oil-wells-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }