Jakarta – Groups of local residents in Riau, demanding jobs from contractors of an oil company, have seized cars and blocked rigs trying to enter the company's premises, virtually crippling its operations.

Residents of Sungai Rangau village in Tanah Putih subdistrict have seized 37 cars and five rigs belonging to PT Caltex Pacific Indonesia (CPI), crippling the oil firm's operation, the Indonesian Observer quoted Riau police chief Brigadier-General Maman Suparman as saying on Monday.

He said an agreement had yet to be reached between the residents and management of the oil firm. "I have ordered the police in Bengkalis regency to arrange a meeting between the local residents and CPI management," Mr Maman added.

CPI Public Affairs Manager Poedyo Utomo said the company would lose two billion rupiah (S$387,600) per day if drilling was not continued. "If this situation continues, the state loss will continue. It will also affect oil prices," Mr Poedyo was quoted by Antara as saying.

"We were forced to stop the operation because workers feared to enter their work locations. They are worried there will be clashes with local protesters. We are concerned by the local residents' actions," he added. CPI manager Gery Fitzgerald said that locals are demanding jobs from CPI contractors operating in the area.

The blockade in Kopar had been followed by three other cases in which residents blocked access to CPI equipment at locations in Tanah Putih and Manday sub-districts in Riau, the Observer reported. "We can't move the equipment," Mr Fitzgerald said, adding that the company's operations had been halted temporarily.

He said there were blockades at four of the 107 fields operated by CPI in Riau. He added that police had tried, but failed, to persuade the locals to lift the blockades.

The company had informed other provincial and central government officials of the incidents but nothing much had been done yet, said Mr Fitzgerald. Although the company had earlier experienced the occasional blockades in Riau, "it has been escalating since last week". "If this is not stopped, we will have anarchy," he said.

Mr Fitzgerald said the company was "quite concerned" about the incident and estimated losses of between 15,000 and 30,000 barrels of oil production due to blockades that had happened so far this year.