Devon workers prevent Pertamina?s tanker from loading crude oil

Workers at Devon Energy?s oil production unit at the Salawati block, Papua have prevented Pertamina?s oil tanker from loading crude oil from the area as the oil contractor continued to refuse the workers? demand to get a compensation from the sale of the oil block to another oil company.

Spokesman for Devon Energy Erwin Lebe confirmed in Jakarta on Monday that Pertamina?s oil tanker failed to berth and load crude oil from the Salawati oil block due to the workers? protests. He added that the incident further worsened the crude oil supply to the Kashim refinery plant in Sorong, Papua, because the crude oil supply through a pipeline network had also been cut off by the workers.

He, however, said that the oil production activities at the oil field still continued, albeit, at a lower rate. According to him, at least 10 oil wells still continue to operate but they only produce about 2,800 barrel per day, much lower than the normal level of 11,000 barrel per day.

Some 200 workers at the company?s operation unit in the Salawati oil field went on a strike on April 25 due to the company?s refusal to give them a "transitional" compensation from the recent sale of the company?s assets including the Salawati oil field to China Offshore Oil Corporation (CNOOC).

Erwin said he feared that if the workers continued to prevent the oil tanker from taking the crude oil from the oil field, the Kashim refinery plant would not be able to carry out its operation due to the lack of crude oil supply. "The operation of the oil tanker is the most possible alternative to feed up the refinery plant because the pipeline which transmits the crude oil supply from the oil block had long been disconnected by the workers.?

Separately Pertamina?s assistant manager for production sharing operation, Harijanto, said that the state owned oil and gas company was seeking other alternative to seek the crude oil supply for the Kashim refinery plant, which supplies the fuel demand for Papua province.

He said that Pertamina was still seeking the possibility of securing the crude oil supply from the Kartez oil field in Ambon if the workers? protest continued. "This field is able to supply about 6,000 barrels per day. Besides, we have also prepared Pertamina?s operation unit in Hulu Sorong to add the crude oil supply," he added. (*)