Operator loses Rp 4b after fatal oil rig riot

Operators of an offshore oil rig in Tiaka, the Central Sulawesi town of Morowali, are suffering at least Rp 4 billion (US$468,000) in losses after a fatal riot at the rig on Wednesday.

The incident broke out when 100 residents visited the oil rig hoping to meet the management. They became unruly when discussions on a community welfare program became deadlocked, leading to two residents' death and serious injuries to four others.

The rig is operated by a joint operating body of state oil firm PT Pertamina and local private energy company PT Medco Tomori.

“Losses came from damaged physical facilities such as electrical equipment and panels,” Upstream Oil and Gas Regulator (BPMigas) spokesman Gde Pradnyana said Friday in Jakarta.

He added that the figure excluded potential losses caused by a halt in production, citing that the rig usually produced about 1,600 barrels of oil per day from its six wells.

“We're waiting for the situation to become conducive again before we resume activity,” Gde said as quoted by tempointeraktif.com.

He added that the Central Sulawesi Police were still investigating the scene of the incident.