Workers of Caltex?s partners in CPP oil block face uncertainty

Hundreds of people working for PT Caltex Pacific Indonesia?s partners such as suppliers and contractors in the oil giant?s Coastal Plain Pekanbaru (CPP) oil block are facing uncertainty due to the planned transfer of the oil block management to other operator within next few days.

"We are working for Caltex?s suppliers and contractors. But we don?t know what will happen on us when the new operator take over the management of the CPP oil block," said Surdyanto, the chairman of workers working for Caltex?s business partners.

A number of companies including PT GSA, PT PUC, PT JPU and CV Persada Indah operate as Caltex?s suppliers and other contractors. The companies employ hundreds of workers.

The CPP oil block is part of Caltex Pacific Indonesia?s oil concession areas in Riau. Caltex has to transfer the oil block to a consortium of Pertamina and Riau-owned company in August this year as the government refuses to extend its 20-year contract. The contract actually ended in August last year but the oil giant was given another one year to give new operator more time to prepare for the new job.

At present, the oil block produces 40,000 barrels per day, far lower than 70,000 barrels per day in the previous years. In addition to CPP, Caltex also operates several other oil blocks in the province. (*)