Oil firms cut investment spending due to security uncertainty
Monday, November 13 2000 - 04:30 AM WIB
Oil and gas companies have reduced their investment spending this year due to uncertainties in the security situation such as the local residents' hostile activities against their operations, Suara Pembaruan reported.
Director general of oil and gas at the ministry of energy and mineral resources Gatot Karseno Wiroyudo said last week that the company only spent about 80 percent of their investment plan amounting to between US$800 million and 1 billion allocated for this year.
He said that between $200 million and $400 million of the planned investment could not be realized due to uncertainties in security situation. "Activities of Vico, ExxonMobil and Caltex have often been interrupted by local residents' protests," he added. Gatot said the investment situation in the oil and gas industry would not change much next year as the hostile activities against the oil and gas and oil companies would likely continue during the year. (*)