Devon, workers reach agreement on compensation package

Papua workers of US energy company Devon Energy who had gone on strike reached an agreement on Friday with the company management on a compensation package, according to a well-placed official of state oil and gas company Pertamina.

Sidick Nitikusuma, senior manager at Pertamina?s Production Sharing Management Directorate, told Petromindo.com Devon agreed to compensate the workers for the transfer to PetroChina of its working interest in Salawati oil block in Sorong Regency, Papua.

But Sidick did not provide the details of the compensation. He only said it was in accordance with the prevailing labor agreement signed by the two sides.

?Further, the workers agreed to be cooperative with the PetroChina management,? Sidick said.

The two sides reached the agreement in Jakarta on Friday, and Pertamina?s representatives took part in their negotiations.

Some 200 workers at the Salawati block went on strike on Apr. 25, but two weeks later they agreed to get back to work.

They demanded for ?transitional? compensation for the transfer to PetroChina of Devon?s working interest in the Salawati block. Devon turned down their demand arguing that it was not regulated by existing laws. (Godang)