Exspan suffers loss of Rp 4.7 billion due to blockade

PT Exspan Nusantara, the production sharing contractor of the state owned oil company Pertamina in Rumbai, Riau, has suffered a financial loss of at least Rp 4.7 billion (1US$=Rp9,600) due to a blockade by local residents at its oil wells.

The company's spokesman Marwan Umar said on Friday that the local residents' recent move to block the access road to the company's 20 units of oil pumping facilities had caused a total halt in production activities in its wells in Siberida district, Indragiri Hulu.

"The action certainly did not only hurt the company but also the government which shares most of the oil production," he said as quoted by Riau Pos on Saturday.

Marwan said that the Rumbai people demanded to be provided with power supply from the company's captive power plant was no realistic due to the low capacity of the power generator.

He said in April, last year, the company agreed to provide a power generator set for the local residents but the assistance was rejected.

Residents of Paya Rumbai villages in Siberida district, Riau recently blocked access road leading to oil wells of the oil company as the oil company denied to meet their demand to provide them with power supply.

At least 20 units of the oil company's oil drilling facilities in the Paya Rumbai, which produced about 300 barrels of crude oil per day, had stopped operation due to the blockade.(*)