Caltex resumes operation of Genting field as blockade ends

PT Caltex Pacific Indonesia (CPI) has resumed oil production activities at the Genting and Perkebunan fields in Rokan Hilir, Riau, after two-week long blockade by job-seeking youth from nearby villages ended on Thursday, Dow Jones reported on Friday.

The blockade which started on June 1, had paralyzed production activities at seven small wells ? five at the Genting oil field and two at the Perkebunan field, according to Caltex spokesman.

But the spokesman said that production activities were only resumed at the two wells at the Perkebunan field because of the damages of facilities at the Genting field.

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

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

Meanwhile, other Caltex spokesman, Renville Almatsier told Neraca that Caltex agreed in the meeting to repair a 9-kilometer road leading to the Sintong village, where most of the local residents live.

The oil company also agreed to help renovate the local market place as well as to hire locals if there are new job openings in the oil production activities, he said.

Caltex, the country?s largest has become the target of local residents? resentment within the past three years. The company said that disruptions to the company?s oil production facilities had resulted in a loss of 30,000 barrels per day last year. This year the loss in the production due to disruptions has reached about 40,000 bpd. (*)