Caltex's output drops 5.4% on security problems
Wednesday, May 23 2001 - 08:30 AM WIB
American oil and gas company PT Caltex Pacific Indonesia's oil output decreased by 5.4 percent or 40,000 barrels annually last and this year due to security problems, equipment theft, delayed drilling program, state oil and gas company Pertamina's Baihaki Hakim said on Wednesday.
Baihaki said in a prepared statement presented during the hearing with the House of Representatives' Commission VIII for energy and mineral resources, environment and science and technology that Caltex's oil output stood at an average 705,400 barrels per day (bpd) in 2000, which was 5,4 percent lower than the normal output of 743,000 bpd.
He said Caltex was producing an average 652,830 bpd this month, compared with 727,040 bpd in February last year.
Caltex, which is equally owned by American energy firms Chevron and Texaco, operates several oil blocks in Riau.
Baihaki said security problems that had beset Caltex in 2000 included demonstration, labor strike, blockage, terrorism, land dispute.
The company also had also its production tools stolen, which forced it to delay drilling new wells throughout the year.
He said demonstrations, labor strikes, and blockages cases had risen to 93 in number in 2000, from 42 the previous year and 8 in 1998.
He said the Bengkalis police had stepped in to solve the security problems.
"If the security problems remain unsolved, production will continue to steeply decrease, which in turn could cause reservoir damage," Baihaki said. (Godang)