Caltex's Riau rig workers still on strike

Activities at eight drilling rigs of oil and gas producer PT Caltex Pacific Indonesia (CPI) in Riau, Central Sumatra, did not yet return to normal by Wednesday as some 300 workers of its contractor were still on strike, CPI?s spokesman Poedyo Utomo said on Wednesday.

?At this moment, the drilling rigs are still stalled,? Poedyo told Petromindo.com from Riau.

Of the eight drilling rigs, six were located in Minas Block and two in Duri Block.

The 300 people were employees of PT Boromindo Nusantara, CPI?s contractor. They had been on strike since Sunday.

The labor strike took place reportedly after Boromindo?s management refused to raise their pay for extra working hours.

Poedyo said representatives of the workers had been scheduled to negotiate with CPI?s and Boromindo?s executives at the Ministry of Manpower and Transmigration in Jakarta on Wednesday. Ministry officials would mediate the labor dispute.

CPI is Indonesia?s key oil and gas producer, contributing about half the country?s crude oil output. World energy giant Chevron Texaco owns the company.

CPI produces around 620,000 barrels per day (bpd) of oil as its contract to operate its Riau oil blocks will end in August. (Godang)