Caltex, Riau yet discuss future of workers: Executive

Indonesia?s biggest oil producer PT Caltex Pacific Indonesia (CPI) has not yet discussed with the Riau provincial administration about the future of the company?s workers in anticipation of the August handing over of Coastal Plain Pekanbaru (CPP) oil block to Indonesia, a CPI executive said on Friday.

?So far we have never discussed with new operators of CPP about our workers,? Poedyo Utomo, CPI?s external affairs assistant manager, told Petromindo.com.

Poedyo also said his company had not offered its workers early retirement.

The CPP oil block, part of Caltex Pacific Indonesia?s oil concessions areas in Riau, will be relinquished to the Indonesian government in August in accordance with the company?s contractual obligation.

State oil and gas company Pertamina and PT Bumi Siak Pusako, a new company formed by the Riau administration, will jointly manage CPP as stipulated by the agreement signed by the two parties in January.

A Bumi Siak Pusako official said recently some 200 employees of Caltex will likely move to the company.

CPP presently produces some 40,000 barrels per day of oil, far lower than 70,000 barrels per day in the past years. (godang)