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© IPA, 2006 - 1st Annual Convention Proceedings, 1972
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204 PROCEEDINGS INDONESIAN PETROLEUM ASSOCIATION
First Annual Convention, June 1972
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THE NEED OF A PETROLEUM INSTITUTE IN THE DEVELOPMENT OF
THE PETROLEUM INDUSTRY IN INDONESIA
Abstract Petroleum development has become
one of, Indonesia's requirements in achieving its
economic prosperity.
In facing the challenges the govern-
ment (through the national oil company) has
invited oil contractors to work in Indonesia.
Tremendous approaches to modern
technology, scientific application as well as research,
are, among other things, the basic, supports to
progress and succes in the industry; however, abun-
dance of problems that may come along need also
immediate solution.
The provision of skilled manpower
ready for assignment is also the basic need to the
development of the industry.
To meet these objectives, an institution was
created in 1965 organized under the Department
of Mines. It serves the Directorate General of
Oil and Gas and Pertamina.
As to the oil contractors operating
in the areas throughout Indonesia, Lemigas makes
itself available in providing the necessary services
needed at hand.
PARTNER IN PROGRESS
Since the new government of Indonesia came
into office in 1966, economic development
has become one main topic among the govern-
ment over-all planning for 25 years. The first
stage of the national development plan known
as REPELITA was introduced, and has been
in the process of implementation since 1969.
In short, economic development in one
country needs certain basic conditions to
start, besides political stability in the country
and the existence of a sound, stable govern-
ment as well.
In facing the challenges, the government has
encouraged foreign investment to work in
Indonesia as partner in progress.
The many uses of oil
Today there are few places in the world where
one can not buy oil products. As the world
turns more and more to petroleum to provide
energy, lubricants, raw materials for chemical
md countless essentials for modern life, oil
and natural gas have given a great deal to
benefit the civilization we live in. The two
OMAR HASSAN ASSAARI "1
commodities will become more important
every day.
The development of the petroleum industry
to date
Roughly speaking, since the pre-war time,
Indonesia remains one of the largest crude oil
producing and exporting country in the Far
East.
After the political complications of recent
years, oil explotation is now in full swing
again. Extensive areas awaiting for exploration
have been taken over. Serious development
has been encouraged. The country lacks the
technical and financial resources essential for
oil exploration which have been much secured
to some extent by means of welcoming
foreign investment to work in cooperation
with the state-owned oil company, Pertamina.
As broad a scale as pdssible of foreign partici-
pation in the development or oil resources has
also been guaranteed. This will accordingly
benefit the country economically.
Oil policy iri Indonesia
A few years ago, as early as 1960, the Indo-
nesian government sought to change the entire
structure of the commercial system including
the oil industry operating in Indonesia.
Following the introduction of new legislation
in 1960 and other negotiations, in the field
of petroleum development, the government
(in this case) the Department of Mines and
the state-owned oil company, Pertamina,
invited oil companies to operate in certain
areas of Indonesia. Through mutual agreement's
and agreed terms, the companies work as
contractors to Pertamina. To date we have
witnessed about 50 companies working off-
shore and onshore throughout the Indonesian
archipelago.
The latest development in Indonesian politics,
however, suggests that a more broadly based
industrial system may develop and make for
*) LEMIGAS, Lembaga M:nyak dan Gas Bumi
(Indonesian Institute of Petroleum).

direct foreign investment in the country's oil
operations.
Many needs in oil operations
The developments in the discovery, producti-
on, refining and transport of oil and t h e
extent to which it has entered into modem
civilization within a comparatively short span
of time are of tremendous importance.
Yet surprisingly little is generally known about
the origin of oil and the methods employed
t o find, to produce and to refine and to refine
it. Even with an army of highly skilled
specialists and t h e latest scientific devices, it
is still a long business looking for oil.
In oil operations, providing various skilled
manpower for various level of jobs ready for
assignment is a very Urgent need.
Tremendous approaches t o modern technolo-
gy, scientific application as well as research,
are among other things, the basic essential
supports t o progress and succes in oil operati-
on. In the meantime, one can imagine the
abundance of various problems that need
immediate solution.
To solve these complex problems, research
activities have been initiated t o cover many
aspects in oil pperational activities: discover-
ing, refining, distributing, marketing petroleum
products, at the right time, t h e right place and
at the lowest possible cost, have been the
objectives remained un-altered since.
The need of an institute is evident; a petroleum
research institute has been a focal point in the
development of t h e petroleum industry, this
also holds true in Indonesia.
To meet the objectives the government long
considered the creation ot a research and
training institution specializing in oil and
gas t o support such development. The institute
was formed in 1965 under the organization
of the Department of Mines.
It serves the government (Department of
Mines, Directorate General of Oil and Gas)
and Pert amina.
As to the oil contractors operatingin the areas
throughout Indonesia, t h e institute provides
its valuable services as needed.
This Institute is officially called Lembaga
Minyak dan Gas Bumi or Lemigas.
l t has three fold responsibility
- research
- training
- documentation and publication (infor-
mation).
205
The head office is in Cipulir, Kebayoran,
Jakarta. It has a field training center in Cepu,
Central Java. Lemigas employs about 100
university graduates of which t h e majority
are engineers, geologists and chemists.
Research
That is t o carry out research, survey or other
scientific investigation which may answer the
problems faced by t h e industry. The institute
also acts as the national standard laboratory
in oil and natural gas.
Training
That is to perform or organize the training of
engineers, workmen and executives in order
t o maintain a high level of development in
the industry.
Documentation & Publications
That is to organize a complete documentation
and information centre on the science and
technology of petroleum to disseminate
information on new development and dis-
coveries to the interested section of the
community which participate in the oil
development 11-1 the country.
RESEARCH
Research activities in Lemigas have been
maintained t o conduct research and projects
in the fields of :
* kixpioration & PFoduction
* Refining 81 C'hemistry
* .Economics & Planning.
These works are carried out in laboratories
available in ('ipulir, Kebayoran Lama. At
present, L.emigas has the following laboratories
available.
* Paleontology Laboratory
* Petrography Laboratory
* Sedimentol0g.y Laboratory
* Core Analysis Laboratory
* PVT Laboratory
* General Standard Test Laboratory
* Crude Oil Evaluation Laboratory
* Process Laboratory
* Analytical Laboratory
* Engine Testing Laboratory (being set up).
Studies carried out are :
* Basin Studies
* Techno-Economic Studies
* Reservoir Studies
206
EXPLORATION & PRODUCTION Production laboratory for the study of
The Department of Exploration and Producti- secondary recovery process such as thermic
on is organized to conduct research of special method,. miscible gas, injection of polymers,
studies. These studies has been actively carried etc. will be constructed; however, this will be
out by a Basin Study Group in close cooperati- further defined in the next stages of our
on with Pertamina's geology department. development.
The group undertakes the study of various REFINING AND CHEMISTRY
parts of sedimentary basins in Indonesia.
The work includes gathering, interpreting, GENERAL TEST LABORATORY
compiling and making analysis of all available
data ; some field work t o check and t o find The laboratory cames out such service as :
out more recent additional data are also being * Quality Control
done. Sedimentology, production geology, * Product Evaluation
geochemistry and exploration economics will
soon be started. for samples of:
Petroleum products : * aviation fuel
STRATIGRAPHY LABORATORY * gasoline
These studies are based on micro-pdeontology *kerosine
analysis (benthonic, pelagic and larger forami-
* diesel oil
nifera) and rock descriptions. Studies on nan-
* fuel oil
noplankton will be set up in 1973. * asphalt
* wax
Other Geological Activities *lube oil grease-in-
The geological activities carried out by the sulated compound,
Lemigas team are : etc.
* geological mapping - Water : * drinking water
* well-site geology and *well water
* structures reevaluation. * formation fluid, etc.
The team is available t o provide the above Chemicals : *methmol
services for the companies. acetane
* solvent
GEOPHYSICS * additives, etc.
This department is setting up a small inter-
pretation centre, while a gravity survey is The General Laboratory of Lemigas is equipp
being done at present. ed with Standard Test Apparatus according
to ASTM, IP and SMS Standard.
PRODUCTION CRUDE OIL EVALUATION
Research in production will be started this Lemigas provides four classes of crude oil
year and by the beginning of 1973, when analysis which the laboratory has available.
two laboratories will be completed, e.g,
A Core Analysis laboratory End a PVT - Rapid analysis
laboratory. for analysis well by well during the
drilling period of a field
With these laboratories, Lemigas will be fully
enabled t o conduct routine, semi research and
* for controlling the production of a
field
service work for the oil industry operating * as an orientation step in further study
over a wide area in Inenesia. analysis.
The PVT laboratory will carry out the follow-
ing activities. - Simplified Analysis
* Thermodynamic study of effluent: * as a preliminary analysis in connecti-
crude oil, dry gas, gas condensates, on with the possibility of doing more
hydrates. complete analysis.
* Gas and Oil analysis molecular mass * for rapid comparison of some crudes
* Gauging of the different apparatus for in respect of yields and qualities of
pressure measurements. some products.
 - Mean importance analysis
* as information of crude oils for sale.
- Detailed analysis
* international commercial crude oils.
* to give detailed information tor
processing and refining purpose.
The Crude Oil Evaluation Laboratory i s
equipped with :
* Podbielnkk Hypercal 3.800 Distillati-
on IJnit
* Oldershaw columns of various sizes
* QVF columns
* and various other types of equip-
ments.
LUBE OIL EVALUATION
Lemigas also conducts laboratory evaluation
for lube oil base stock.
This is available in two classes :
* Preliminary Analysis
* Detailed Analysis.
At present, preliminary analysis and detailed
analysis for lube oil is being done with
batchwise and counter current solvent extrac-
tion deasphalting units ( 40 1. capacity).
The laboratory is equipped with the following
apparatus:
* Continuous Vacuum Flash Unit
* Counter Current Extraction Unit
(Micro-extraction)
* Dewaxing Unit,
ASPHALT EVALUATION
Asphalt analysis has also been carried out.
This is also available in two classes :
* Preliminary Analysis
* Detailed Analysis.
ANALYTICAL LABORATORY
Lemigas Analytical Laboratory conducts
chemical analysis of:
* metals in petroleum products, cata-
lysts, polymer, clay and clay minerals,
etc.
* gas: natural gas and gaseous hydro-
carbons
* petroleum and petroleum products
* water analysls: oilfield water, indus-
trial/industrial waste water.
For this purpose Lemigas Analytical Labora-
tory is equipped with:
* Perkin Elmer
Type 403 Atomic Absorption Spec-
trophotometer
* Beckman GLG Type Gc-5 Chroma-
tograph
* Varian Aerograph Type 90 P4 Gas
Chromatograph
* Bausch and Lomb Spectrophotometer
* and various other instruments.
For further development, the following equip
ment will be installed in the Analytical
Laboratory:
* Nuclear Magnetic Resonance (NMR)
* Mass Spectrometer
* Infra Red Spectrophotometer
* Ultra Violet Spectrophotometer
* Elemental Analyser
PROCESS LABORATORY
Lemigas CAT - A Test Catalyst Activiqy Test
Apparatus enables it to compare actiyity of
cracking catalysts.
Research such as the study of the properties
of Indonesian clays are also conducted in this
laboratory.
ENGINE TESTING LABORATORY
One of the main objectives of the Engine
Laboratory is to assess the quality of the fuels
and lubricants made or sold in the country.
Indeed, it is well-known that physical and
chemical laboratory tests on engine fuels and
lubricants are useful for product identifications
and for ensuring uniform quality for market
production; the performance level of products
in service have to be ascertained by extensive
use of bench and road tests on engines, par-
ticularly since additives for fuels and lubricants
have become universally used.
To provide customers with facilities in order
to cope with the varying quality of fuels and
lubricants, Lemigas is currently setting up
engine testing facilities in cooperatiop with
the Engine Testing Application Divisio~of the
French Petroleum Institute, to be completed
in the beginning of 1973.
The scope of this laboratory will extend over
the following range:
- Automotive and Diesel Fuels
- Lubricating Oils
- I.C. Engine
- Atmospheric Pollution
- Industrial Oil/Greases
- Fleet Supervision
2 08
PLANNING AND ECONOMICS
- *
The Planning and economics Department is
organized to conduct techno-economic studies
such as:
- Analysis of demand for Petroleum
Products
- Analysis of existing refining facilities
and study of their development to meet
the demand in Indonesia as well as the
surrounding area
- Studies on Petrochemistry
- Analysis of industries using petroleum
products
- Studies of transport facilities for oil
- Techno economic evaluation of projects
in the field of petroleum activities
- Studies of importlexport regulations
concerning petroleum
- Carrying out/following the planning for
development of refining facilities
- Supervisinglconsulting the construction
of refining facilities.
TRAINING
Lemigas performs and coordinates all training
activities in the form of a petroleum academy
(Akamigas), upgrading courses, orientation
courses and seminars.
AKAMIGAS
Akamigas (Academy of Oil and Gas) is a
regularly 3-year course of college level, held at
its campus in Cepu, Central Java. Full courses
are given for students specializing in the
following subjects.
Exploration
Exploration and Production
Drilling
Refining
Engineering
Sales Engineering and Marketing
Surveying
Logistics
Instruments and Electronics.
CRASH PROGRAM COURSE OF OIL AND
GAS
Crash Programme Course officially inaugurated
in June 7, 1971 comprising 4 departments :
* Drilling
* Refinery Operation
Refinery Maintenance
* Supply
It is a crash programme course t o meet the
need of skilled people according to the
development of the national oil industry at
that time. The students are taken from the
Universities and Academies, most of them
having graduated as Bachelors of Science from
a University/Academy.
VOCATIONAL TRAINING AND ADVANCED
VOCATIONAL TRAINING OF OIL AND
GAS
These training courses are held to provide the
industry with skilled labour. The former is
conducted for two years (for secondary school
graduates), in the oil operation centers such
as Pangkalan Brandan, Plaju, Cepu and Balik-
papan. The latter is a one year training (for
High School graduates) organized in Jambi,
Plaju, and Balkpapan with a Welding - and
General fitting department.
POST GRADUATE SHORT COURSE
Throughout, the year LEMICAS organizes
specific seminars and courses. These are
refresher courses arranged for the scientific
and technical staff already in employment
within the oil industry.
It includes specific courses on such subjects
as:
* Stratigraphy
Sediment ology
* Basin Study
* Geophysical Exploration Methods and
other specific discipline in Geology.
* Production
* Refining
* Marketing and Distribution
* Transportation andAtorage
* Administration.
OVERSEAS TRAINING
Overseas training for the whole oil industry
is organized by the institute, which uses all
available means and courses for training, such
as special schools, training programmes of
international organization, as well as seminars
and conferences on petroleum and petro-
chemical industry.

COURSES ON PETROLEUM INDUSTRY,
MANAGEMENT TRAINING
These are orientation or special courses
conducted at various times of t h e year for
officials in such departments as custom, bank
and foreign exchange bureau, department of
trade etc. who in their daily work deal with
the oil industry. These courses are intended
to give them a better appreciation of the
petroleum industry. Courses have also been
held for the armed forces in order to form
a corps of oil specialists.
To keep up better management of various
levels i n the industry, LEMIGAS organizes
regular courses in the centress of operation.
SEMINAR AND SYMPOSIUM
LEMIGAS organizes seminars and symposia
for discussion of problems in the petroleum
***
209
and associated industry a t the national level
In seminars and symposia at international
level LEMIGAS represents the industry or the
Directorate General o f Oil and Gas.
CONCLUSION
The role and function of this Institute will
increase from day to day in the developments
of' scientific studies, research, training and
preparation of skilled personnel f6r supporting
the rapid growth of the oil sector of the
Indonesian economic development.
Recogniiing its limitations, due t o age,
experience, etc, the institute is now starting
to assist the oil activities in the field of services
and technical studies mentioned above, for
mutual benefit and at the same time to
enhance a sphere of mutual understanding for
the development of oil industry in this region.