Caltex warns of labor, crime problems

Caltex warns of labor, crime problems

JAKARTA: Indonesia's biggest oil contractor PT Caltex Pacific Indonesia is concerned production will decrease due to criminal acts and labor problems in its operation area, a senior company official said on Tuesday.

Caltex, owned by Chevron Texaco, produced about 616,000 barrels per day (bpd) of oil in April from its operation area in Central Sumatra, compared with 610,000 bpd in March.

"The (level) of criminal acts is increasing in our operation areas. One of our employees was killed last month." Caltex senior vice president Yudiana Ardiwinata

"Several rigs' production (has) stopped because of a labor strike from our drilling firm contractor. There will be an impact in our production in the future," he said.

Caltex operations have been hit by a series of disputes with local administrators and workers.

Caltex is a key contributor to Indonesia's oil and gas reliant economy. It accounts for about half the country's crude oil output. Indonesia's crude output edged down to 1.12 million bpd April from 1.13 million bpd in March. -- Reuters