About Balikpapan (Wikipedia)

Balikpapan is a seaport city on the eastern coast of the island of Borneo, Indonesia, in the East Kalimantan province, a resource-rich region well known for its timber, mining, and petroleum export products. Two harbors, Semayang and Kariangau (a ferry harbour), and the Sepinggan International Airport are the main transportation ports to the city.
History
Prior to the oil boom of the early 1900s, Balikpapan was an isolated Bugis fishing village. Balikpapan's name (lit. balik is behind and papan is a plank) comes from a folk story where a local king threw his newborn daughter into the sea to protect her from his enemies. The baby was tied beneath some planks, which were discovered by a fisherman.[citation needed]

In 1897, a small refinery company began the first oil drilling.[1] Construction of roads, wharves, warehouses, offices, barracks, and bungalows started when a Dutch oil company arrived in the area. On January 24, 1942, Balikpapan became a war theatre between the Japanese army and the Allied Forces, resulting in heavy damage to the oil refinery and other facilities. Several campaigns followed until the 1945 Battle of Balikpapan, which concluded the Allied Forces' Borneo campaign, after which they took control of the Borneo island.

Extensive wartime damage curtailed almost all oil production in the area until major repairs were performed by the Royal Dutch Shell company. Shell continued operating in the area until Indonesian state-owned Pertamina took it over in 1965.[1] Lacking technology, skilled manpower, and capital to explore the petroleum region, Pertamina sublet petroleum concession contracts to multinational companies in the 1970s.

With the only oil refinery site in the region, Balikpapan emerged as a revitalized center of petroleum production. Pertamina opened its regional headquarters in the city, followed by branch offices established by international oil companies. Hundreds of labourers from other parts of Indonesia, along with skilled expatriates who served as managers and engineers, flocked into the city.


Map Balikpapan -1.25,116.833333


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Jumat, 06 Agustus 2010

Pertamina Oil And Gas


Pertamina (Perusahaan Tambang Minyak Negara, lit. 'State Oil Extraction Company') is an Indonesian government-owned corporation which extracts and refines the country's oil and gas reserves. It was created in August 1968 by the merger of Pertamin (established 1961) and Permina (established 1957). Pertamina is the world's largest producer and exporter of Liquefied Natural Gas (LNG).

In 1957, Dutch assets in petroleum were nationalized, from which Permina was founded as a state-owned oil monopoly, headed by Lieutenant-General Ibnu Sutowo. Ibnu Sutowo's position as the second deputy of Abdul Haris Nasution was the beginning of the army's involvement in the oil industry. Permina distributed oil for the entire archipelago.

Permina founded the Apprentice Technical School (Sekolah Kader Teknik) in Brandan to train and produce experts in the field. To meet this goal Permina established the Oil Academy in Bandung at 1962. Oil Academy's curriculum pertains to the technical aspects of the oil industry, and the graduates turned into the main forces in Pertamin (which later transformed to Pertamina).

In 1960, the Congress enacted a policy that the mining of Indonesian oil and ground gases are only permitted for the state, through a state-administered company. Pertamin, established in 1961, was responsible for the administration, management and controlling of the exploration and production. The policy was short lived. An agreement between the state and foreign companies was affirmed that gradually, oil refinement manufactures and other assets in marketing and distribution were to be sold to Indonesia within five to fifteen years.

In 1968, to consolidate oil and gas industry for its management, exploration, marketing and distribution, Permina and Pertamin merged and became PN. Pertamina. It continued to do little drilling itself, but made production-sharing agreements with foreign companies.

In the 1980s, major partnerships with American and French firms produced vast quantities of petroleum. Caltex, a joint Chevron-Texaco company, and Total S.A. were some of the largest foreign players.

Human rights observers have long expressed concerns about Indonesia's hostility to labor unions. According to the Multinational Monitor: "In 1985, the government ordered the firing of over 1,600 workers at Pertamina and foreign oil companies, charging that they had been members of the Indonesian Communist Party, which had been banned 19 years earlier when Suharto took power."

In 2003 Pertamina legally became PT. Pertamina (Persero), as per the enactment of Government Regulation No.31/2003. Pertamina is now under the coordinator of the State Minister of State-owned Enterprises.

Like other contractors, Pertamina holds Cooperation Contract to Oil and Gas Regulatory Body. With its transformation into a limited liability company, Pertamina has become a business entity with the main target of making a profit.


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