CPI plant blockade causes huge financial losses<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Villagers of Rokan Hilir regency in Riau province has blocked a
\ngas plant belonging to PT Caltex Pacific Indonesia (CPI) since
\nFebruary this year, causing massive losses to both the American
\noil and gas company and the government.<\/p>\n
CPI spokesman Hanafi Kadir was quoted by Antara as saying on
\nFriday that the crowds had damaged a compressor machine at the
\nplant, which also produces oil, thus halting production.<\/p>\n
\"To this day (Friday), the gas plant is unable to resume
\noperations,\" said Hanafi.<\/p>\n
Hanafi said that the month-long blockade had prevented the
\ncompany from producing some 7 million cubic feet of gas,
\nequivalent to 1,150 barrels of oil per day.<\/p>\n
Estimated losses from the interrupted production was about
\nUS$920,000, he said.<\/p>\n
\"Combined with the oil production failure, total production
\nlosses are estimated at $1.15 million,\" he said.<\/p>\n
After deducting expenses, the government would receive 85
\npercent of the oil and gas revenue, while the remainder would go
\nto CPI.<\/p>\n
The local villagers began blockading the gas plant on Feb. 17,
\ndemanding that CPI repair local roads damaged by trucks carrying
\nheavy equipment.<\/p>\n
CPI was seeking contractors to repair the roads in a bid to
\nend the blockade, Hanafi said.<\/p>\n
Foreign companies operating in remote areas in the country
\nhave often faced local resistance in the past couple of years for
\nvarious reasons, which is one of the factors discouraging new
\ninvestment in the country.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/cpi-plant-blockade-causes-huge-financial-losses-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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