Protests upset Kalimantan oil firms

Protests against oil and gas operation in East Kalimantan could escalate if gas company Vico Indonesia Ltd fails to settle its dispute with locals, a senior official at state oil and gas company Pertamina said on Saturday.

Spokesman of Pertamina's Foreign Contractors Management Body (BPPKA) A. Sidick Nitikusuma identified gas companies Unocal Indonesia and Total Indonesia as vulnerable to demonstrations.

Local residents have rallied against Vico for several weeks, demanding the company pay compensation for damage they accuse it of causing to their farms. The residents have blocked the access road to Vico's Serambah production plant it Kutai regency.

"The blockading activities may spread to other companies," Sidick said.

Vico, Unocal, and Total are Pertamina production sharing contractors that deliver gas to the Bontang liquefied natural gas (LNG) plant in East Kalimantan.

Sidick said that if Vico failed to negotiate an end to the blockade, it might encourage other locals to occupy the gas fields of Unocal and Total to make similar demands. (*)