Kalrez's workers end strike

Production at the Bula oil field in Seram, Maluku owned by Kalrez Petroleum (Seram) Ltd, which is owned by Hong Kong and Australian investors, has returned to normal after its workers ended strike.

Spokesman for Pertamina's production sharing contract (PSC) directorate A. Sidick Nitikusuma confirmed on Monday that the workers had returned to works on Dec. 16, 2000 after reaching agreements with company's management.

The workers were still at work until Monday, Sidick said.

The workers launched strikes starting on Dec. 8 with demands among others that the company raise their pay to the minimum level set by the government and hire them as permanent workers rather than contract workers.

Kalrez's general affairs manager Rina Luciana, in a letter to Pertamina's PSC directorate on Monday, which was made available to Petromindo.Com, said production at Bula had increased to 596 barrels per day (bpd) on Monday from 409 barrels on 409 bpd on the previous days.

The company was forced to stop production last month at the peak of the labor strike.

Rina said Kalrez had agreed to increase its workers' pay to above the minimum level set by the government and provide them with several fringe benefits. She did not however provide details on the pay and benefits to be received by the workers.

The company also agreed to give permanent employment status to most of its workers and place the rest under an "outsourcing company", Rina said.

Pertamina data say aside from Kalrez, there are two other oil and gas companies operating on the Seram island, that is Kuwaiti firm Kupfec and Canadian firm Canadian Oxy. (Bodega)