US invasion into Iraq affects Bumi Siak?s procurement activities

The United States-led attacks on Iraq has severely affected the procurement of heavy equipment for oil exploration and production activities from the U.S. and other countries such as Japan, Riau Post reported on Tuesday.

HM Soeratno, the director of the Riau-based PT Bumi Siak Pusako (BSP), said in Pekanbaru on Monday that the American invasion into Iraq had seriously affected the procurement of the equipment for the company?s exploration and production activities from the U.S.

"At present the procurement problem does not really affect operational activities because the company still has enough stocks. But if the war continues, the company will lack vital equipment due to the procurement problem," he said.

BSP, which is owned by the Riau provincial administration, last year took over the operation of the Coastal Plain Pekanbaru (CPP) oil block after Caltex terminated its contract on the rich oil block. The company operates the oil block in cooperation with state owned oil company Pertamina through a consortium called Joint Operation Body or BOB.

The oil block?s production reaches about 36,000 barrels per day. Before the transfer of the oil block, Caltex was able to produce 40,000 barrels per day. (*)