The Petroleum Resources of Indonesia by Ooi Jin Bee (auth.)

By Ooi Jin Bee (auth.)

THE quadrupling of oil costs inside of a number of months in overdue 1973 and early 1974 delivered to an abrupt finish the period of cheap oil. for the reason that then the ongoing raises within the cost of oil traded within the foreign marketplace and the better costs of imports of manu­ factured items have heavily disrupted the foreign currency balances of many constructing international locations and compelled them to replan their improvement programmes. The influence of excessive oil costs is felt in each nation, no matter if constructed or constructing, and has dropped at global recognition the truth that not just are petroleum assets in restricted offer and exhaustible but additionally that substitutes can't be stumbled on simply or fast. In a global confronted with the understanding of declining provides of petroleum there's frequent curiosity and difficulty between all of the oil generating international locations to judge the level in their petroleum assets and to envision extra heavily the issues in their improvement, charges of depletion and strategies of conservation. the current paintings experiences a few of the above concerns and difficulties in terms of Indonesia, an OPEC member, and the foremost oil generating state in South-East Asia. extra particularly, it seeks to supply the reader with an outline of the petroleum assets of the rustic­ their nature, quantity, distribution in addition to the issues in their development.

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PERTAMINA: THE NATIONAL OIL COMPANY 23 resulted in the transfer ofN. M to a newly-created limited liability company, PERMINDO, with Shell retaining 50 per cent ownership as well as providing the technical assistance. However under the new mining law PERM INDO was dissolved, and its place was taken by Pertambangan Minyak Indonesia (PERTAMIN), a state enterprise. M as well as the rehabilitation of several wells in Jambi. But these efforts were on a modest scale as the company funds were limited and it did not seek foreign capital for its exploration and development programmes.

The model for eastern Indonesia is more complicated. Gribi (1973) considers the Moluccas as the meeting zone of four crustal plates: the Pacific plate on the north-east moving south-west; the Indian Ocean plate on the south-west pushing north-east; the Australian shield providing a relatively stable eastern buttress; and the Sunda Shelf marking the western limit of the area. The collision of these plates has resulted in a gigantic anti-clockwise sworl (see also Katili, 1975; Hamilton, 1979). In so far as petroleum is concerned, the foreland basins appear to Fig.

It created a Government Council of Commissioners to determine PERTAMINA's general policy and approve its policies, budget, borrowings, establishment of joint ventures and subsidiaries and other transactions. The President retained his prerogative to appoint and discharge council members, as well as the final authority on all decisions. The management of PERTAM INA was vested in a Board of Directors, consisting of the President-Director (Dr Ibnu Sutowo) and five other directors, each the head of one of the five main divisions of the company--exploration and production; refining and petrochemicals; domestic marketing; shipping; and finance and administration.

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