Caltex warns of labor, crime problems: Report

Indonesia's biggest oil contractor PT Caltex Pacific Indonesia was concerned production will decrease due to criminal acts and labor problems in its operation area, a senior company official was quoted by Reuters.

Caltex, owned by Chevron Texaco produced about 616,000 barrels per day (bpd) of oil in April from its operation area in Central Sumatra, compared with 610,000 bpd in March.

But Caltex senior vice president Yudiana Ardiwinata said: "The (level) of criminal acts is increasing in our operation areas. One of our employees was killed last month."

"Several rigs' production (has) stopped because of a labor strike from our drilling firm contractor. There will be an impact in our production in the future," he said on Tuesday.

Caltex operations have been hit by a series of disputes with local administrators and workers.

Ardiwinata called for stronger central government actions to prevent the problems.

Caltex is a key contributor to Indonesia's oil and gas reliant economy. It accounts for about half the country's crude oil output.

Indonesia's crude output edged down to 1.12 million bpd April from 1.13 million bpd in March. Condensate production also fell to 137,000 bpd from 144,000 in the same period. (*)