CPP oil block resumes operation as riot ends

The Coastal Plain Pekanbaru (CPP) oil block has resumed operation after the police managed to break a blockade made by the local villagers who went on a riot in one of the company?s oilrig area in Sungai Bayam district, Riau?s Siak regency.

Jusmadi, the president director of the oil field?s operator PT Bumi Siak Pusako (BSP) told Petromindo.Com on Monday that the operation resumed on Saturday night after the police managed to end the protest.

?Some of the protesters have been arrested,? he said.

Bisnis Indonesia daily reported Monday that at least 40 residents from the Sungai Bayam district ran a riot on Saturday after the company?s management gave no positive response to their demand to employ the local residents.

The protesters blocked the access road to the oilrig and held tens of the company?s workers as hostages in the protest. Two of the company?s vehicles were also burned during the protest.

Meanwhile Kompas daily reported that the Riau police sent its troops to the location immediately after receiving a report of the rioting.

BSP took over the operation of the CPP oil field from Caltex Pacific Indonesia in August last year after the government?s contract awarded to Caltex to operate the oil bloc ended. The oil field?s current production is only about 37,000 barrels per day as compared to more than 90,000 barrels per day when it was operated by Caltex. (*)