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Unrest in Indonesia costs Caltex 30,000 barrels a day

Source
Bloomberg News - October 16, 2000

Jakarta – The largest crude oil producer in Indonesia says it has lost 30,000 barrels a day of output this year because of civil unrest.

PT Caltex Pacific Indonesia had produced an average of 710,000 barrels a day so far this year compared with its target of 740,000, said managing director J. Gary Fitzgerald. Last year the company produced 746,000 barrels a day. Production had been disrupted by at least 30 incidents of unrest his year, he said.

Other foreign oil companies have also been affected, preventing Indonesia from meeting its Organisation of Petroleum Exporting Countries quota. "The losses were mainly related to blockades, work stoppages and strikes," said Mr Fitzgerald.

Caltex drills 600 wells a year with 17 drilling rigs and produces oil from 107 fields in Riau province, where it holds four production contracts. Riau has been among the worst affected by civil unrest.

Indonesia faces growing demands for greater autonomy from regional political groups. Local communities are demanding more jobs and compensation for the resources extracted from their land. Last week, villagers blockaded the road leading to two Caltex drilling wells at Kopar in Riau.

The company said it was talking to the local authorities and the protesters and hoped the blockades would be lifted this week.

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