Caltex resumes Bekasap operation

Caltex resumes Bekasap operation

SINGAPORE (Dow Jones): A two-week long blockade at PT Caltex Pacific Indonesia's Bekasap production area ended on Thursday, allowing Caltex to resume partial production, a company spokesman said on Friday.

The blockade, which started June 1, had prevented production at seven wells in two fields - five at Genting and two at Perkebunan, the Caltex spokesman said.

The two-week long blockade by local youths resulted in lost production of 6,440 barrels of oil, or 460 barrels a day.

Although "the fields and vehicles were freed" Thursday, Caltex is only resuming production at two wells from Perkebunan field because of damages wrought at Genting field during the blockade, he added.

Minor repairs at a pumping unit at Genting field need to be carried out before production is resumed at the five wells located there, he added.

Some 20 to 30 job-seeking youths were involved in one of the longest blockades Caltex had experienced. The youths were also responsible for turning off power supply to the fields and cutting a 10-inch operational pipeline, the spokesman said.

The blockade ended Thursday after a resolution was achieved from a meeting of Caltex personnel, the police, and local officials.

Caltex, which is equally American energy firms Chevron and Texaco, is Indonesia's largest oil producer with

Caltex officials earlier said disruptions to the company's oil production facilities resulted in a loss of 30,000 barrels per day and US$300 million last year. This year, disruptions are expected to result in a loss of 40,000 bpd and $500 million.