Is Chevron Indonesia closing down? People are freaked out, rumors are flying, who knows more about this?
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Most Expatriates were moved from the Duri camp to Rumbai. While in Jakarta, a large number ( 29 ) of the expatriates were repatriated back to Houston to face the musical chair of ESP; Of which a few lucky one had gone to Cabinda joining Emerson's group (Good-O-boy networking).
It is confirmed that 11 expatriates were left standing and are preparing for transferring back to the States to be terminated.
CPI used the term "Transformation" rather than ESP.
@1sol, not quite. The IBU operations are not a production sharing contract but rather a concession. I suppose in a way yes, some costs are passed to the host government (we claim more expenses so there is less take on the "profit") but we "own" the oil produced so in some way or another through the magic of financial games the heavy oil fields cost more to operated than they get back profit.
Dont we operate on a cost recovery basis there? If that is the case, the gov would requesting lower costs not CVX?
Indonesia Guv told Chevron no. They did not follow proper protocal. By law, layoffs should be the last option after going through eight steps, including reducing management staff’s benefits, reducing shifts, cutting overtime, slashing work hours, giving leave to shift workers, not renewing contracts and offering staff retirement.........Chevron of course has no Fing clue.
I read that we requested 1500 layoffs (25%) but that the indo govt refused. Not sure how that works, will the govt subsidize the employees?!
Closing down not yet, but layoff ing 1500 folks will on the way shortly..Geothermal asses is the nearest asset to divest, may be..
Well it might not be Chevron's choice... No guarantee from government that the major assets in Indoasia that will up for concession renewal will be available to Chevron at reasonable terms....
Knowing that the national oil company was able take over Total's fields in Indoasia and operate them without a major screw up, I don't know if Indoasia government would want Chevron to stick around at the end of the day. Takes two to tango.
that's what Watson called 'divesting of non-strategic assets'