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