BATAM. ConocoPhillips’ government and external relations field manager, Ary Dwipermana, said the US oil and gas mining giant’s branch offices in the US and European countries had earlier conducted massive layoffs due to declining business before similar efficiency measures spread to its offices in Asian countries, including Indonesia, which had served as ConocoPhillips’ biggest oil and gas exploration area.
“In the US and European countries, ConocoPhillips’ earlier conducted massive layoffs of permanent employees. The company is carrying out operational efficiency by reducing production costs and slashing a number of projects,” said Ary on Wednesday.
Declines in international oil prices have also resulted in declining business among supporting oil and gas companies in Batam.
The biggest and oldest oil country tubular goods producer in Batam, PT Citra Tubindo, said if the situation did not improve by the middle of this year, it was likely that the company would start laying off workers.
Citra Tubindo general affairs manager Naradewa said recently that Indonesia’s supporting oil and gas sector that his company worked in was experiencing turbulent times.
“The current situation is really bad. International oil prices have dropped significantly, causing sluggishness in oil and gas exploration activities. We, as a company working in the supporting field of oil and gas, are experiencing negative impacts of the situation,” said Naradewa.
He said layoffs would be the company’s last resort. “If by the middle of this year there is no improvement, we will have no choice but to conduct layoffs,” said Naradewa.
Citra Tubindo has 700 employees in its management division, comprising 400 permanent workers and 300 contract workers. (Fadli)
