PT Arun to lay off one-third of its workers

PT Arun LNG, a liquefied natural gas (LNG) producer based in Lhokseumawe, Aceh, plans to lay off one-third of its workers or about 262 workers beginning December, this year due continued decline in the company's LNG production.

PT Arun's media relations officer, Irwandar, said in Lhokseumawe on Wednesday that the company which at present employs 928 workers had no other alternative but to reduce the manpower to cope with the decline in production activities.

He said that the LNG production was estimated to further decline to 73 cargoes in 2005 from 103 cargoes this year due to the drop in the gas deposit in the company's gas field. "With the estimated drop in the production, PT Arun will have a manpower surplus of about 260 workers," he added.

According to him, the company will carry out early retirement program in cutting its manpower. He said that there would be an assessment to determine the requirement to be met by workers to be able to continue working in the company

"Workers who can not meet the new criteria will be included in the early retirement program," he said.

PT Arun, which began its LNG production in 1974, gets a gas supply from Arun gas field, which is operated by ExxonMobil Oil Indonesia. The gas deposit which reached over 13 trillion cubic feet during the early years of its operation has significantly dropped in recent years. (*)