Lion Energy?s Bula oil field workers on strike

Some 120 workers at Lion Energy-operated Bula oil field in Maluku have been going on strike since last Wednesday resulting in production stoppage, an industry source said on Tuesday.

The source said the workers demanded to recalculate the "adjustment of payment" agreed in January this year to compensate for inflation. Under the agreement, Lion?s Jakarta-based workers will receive a pay hike of 5.87 percent while Maluku-based workers will get a 3.44 percent pay hike.

?The Maluku-based workers want Lion?s management to recalculate the 'adjustment of payment' based on inflation, especially inflation in the eastern part of Indonesia, which is much higher than that in the western part of Indonesia,? the source added.

Lion Energy Limited?s wholly owned subsidiary Kalrez Petroleum (Seram) Limited, is the 100 percent contractor shareholder and operator of the Bula Block, which produces around 400 barrels of oil per day. (Robert)