Calrez halts production in Maluku due to worker strike

Oil and gas company Calrez Petroleum (Seram) Ltd has halted production at its Bulla oil field on the island of Seram in Maluku due to labor strike.

Spokesman for state oil and gas company Pertamina's foreign contractors management body (BPPKA) A Sidick Nitikusuma told Petromindo. Com on Wednesday production at the Bulla oil field stopped as of last Friday.

Calrez, which is owned by Hong Kong and Australian investors, produced up to 627 barrels of oil per day at the Bulla field prior to the production stoppage.

Tens of company workers have been on strike since last Monday, demanding raise in payment to the minimum salary level set by the government. They asked their pay be raised to Rp 350,000 (US$1=Rp 9,325) per month from Rp 285,000 at present.

According to Sidick, company general manager Russel Brimage, an Australian citizen, is now in Seram to sole the matter.

But a Pertamina source said the workers refused to negotiate with Brimage unless Pertamina's officials were present.

Sidick regretted the production stoppage and the company's late response to the workers' demand.

He said Pertamina had warned the company to pay attention to the workers' demand three months ago.

"The losses caused by the production stoppage is being calculated," Sidick said.

Calrez used to have up to 160 workers but the company's workers has dropped to 80 people due to the two-year-long communal conflicts pitting the region's Christians against Muslims.

Aside from Calrez, two other production sharing contractors of Pertamina, that is Kuwaiti firm Kupfec and Canadian firm Canadian Oxy, also have operations in Seram. (Godang)