CPI may close troubled oil field<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
American oil company PT Caltex Pacific Indonesia (CPI) was
\nconsidering closing its troubled oil field in Jorang, Rokan Hulu
\nRegency, Riau if local residents continued to block the main
\naccess road to the field, according to a senior CPI executive.<\/p>\n
\"We will first calculate the benefit and losses, before
\ndeciding to discontinue the field's operation,\" CPI spokeswoman
\nJeni Simandjuntak told the Jakarta Post by phone from Riau.<\/p>\n
She added that the blockage had forced the company to stop
\noperating two rigs there.<\/p>\n
Jeni noted however, that the company was still trying to
\nnegotiate with the villagers to end the road block.<\/p>\n
CPI produces about 3,000 barrels of oil per day from the field
\nout of the company's total oil production of about 600,000 bpd.<\/p>\n
The villagers blocked the road to pressure Caltex into meeting
\ntheir demands for the company to pave the village's roads, which
\nare used by the company on a daily basis. The locals also wrested
\ncontrol of 20 pieces of heavy equipment belonging to the company.<\/p>\n
The villagers, upset with the dust pollution caused by the
\ntraffic on the unpaved road, argued that the company should be
\nresponsible for improving the road.<\/p>\n
Caltex was previously reluctant to pave the road, claiming
\nthat the road is used mostly by illegal loggers. However, the
\ncompany later reached an agreement with the villagers to asphalt
\nsome sections of the road.<\/p>\n
Some villagers were, however, unsatisfied with the agreement
\nand decided to block the access road as a means of protest.<\/p>\n
Caltex has seen its fields blocked by the local people many
\ntimes over the past several years amid the breakdown of law and
\norder following the resignation of president Soeharto in mid-
\n1998.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/cpi-may-close-troubled-oil-field-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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