Gulf Indonesia Resources to stop East Aceh operation

Gulf Indonesia Resources will stop its oil operation in the Rantau area in East Aceh due to a combination of deteriorating security condition and non-economic oil reserves, according to a source at the company.

Spokesman of the production sharing management office of the state-owned oil and gas firm Pertamina Abubakar Sidick Nitikusuma confirmed that Gulf was considering to halt the Rantau operation but denied that this was caused by poor security condition in the area.

He said that the main reason was the non-economic oil reserves in the area. ?Gulf?s (oil) production in the area continue to decline,? he said, pointing out that the last production level was around 65 barrels or around 10,335 liter per day.

However, a Gulf source said that the security condition in the Rantau area had deteriorated. He said that the company had to often paid ransom for employees believed to be kidnapped by guerillas.

Aceh has long been hit by security problem as separatist guerillas continue to fight for an separation of the oil and gas rich Aceh province from Indonesia.(Amoros)