Pertamina Lirik faces closure threat

Pertamina Lirik production unit in Indragiri Hulu regency, Riau, is facing a possibility of closure following the decrease of its crude oil output since early 2001.

The spokesman for Pertamina Lirik, Junaidi Jamal, said Pertamina Lirik's crude oil production currently stood at only 600 barrels per day, making it unfeasible to continue operation anymore as it could not cover production costs.

The income from selling 600 bpd of oil per day could not cover even routine spending, such as paying salaries for 387 people working for Pertamina Lirik, including 80 permanent employees.

Junaidi explained that most of the revenue from selling the 600 barrels of crude per day, or 80 percent of the revenue, must be submitted to the government's treasury office, and only 20 percent of the revenue can be used to pay the employees and contract workers.

Junaidi predicted that if Pertamina's central office did not take necessary actions to save Lirik production unit, the Lirik operation would have to be closed in the next three years.

"I dare to say this after considering the current situation in Pertamina, that is undergoing a crisis," he said.

The problem would then how to deal with employees as Pertamina could not arbitrarily lay off its employees, he said.

Therefore, Junaidi asked officials at Pertamina headquarters to take necessary and right steps to save Lirik operation so that it could maintain its production and operation for decades. (*)