Caltex plans to reduce workers due to decline in production

PT Caltex Pacific Indonesia (CPI) plans to reduce the number of its permanent workers to anticipate a further decline in the company?s oil production in its concession area in Riau province, Bisnis Indonesia reported on Tuesday.

Assistant to General Manager of External Affairs. Poedyo Oetomo said in Pekanbaru on Monday that the oil giant and Amoseas Indonesia had formed a special team to study the ideal number of the company?s workers.

Caltex has to take a conservative approach to further improve the efficiency of the company?s operation amid the continued drop in oil production such as through the reduction of the company?s workers, Poedyo said.

Although most of the company?s hard-labor jobs particularly in exploration and production activities are subcontracted to local blue-collar workers providers, Caltex also employs permanent workers to handle more difficult tasks.

According to Poedyo, oil production falls by about five percent annually due to lower productivity and the transfer of the operation of the company's Coastal Plain Pekanbaru (CPP) oil field to local investors last year.

The production level dropped to 600,000 barrels per day last year from about 643,235 barrels a day in 2001, and 745,914 barrels per day in 2000. (*)