Minerals Report - International Seabed Authority
Minerals Report - International Seabed Authority Minerals Report - International Seabed Authority
Those who are entitled to the land (other than state land) must let the mining works on the land to take place if they have been properly informed of the license and have been properly and fairly compensated. The Minister of Mines and Energy decides the amount of compensation once formality for the devolution of the right has taken place. If the owner of the land disagreed with the amount decided by the Minister, the amount shall be determined by the relevant district court and all those costs shall be borne by the company (article 12). The owner of the land is obliged to let the mining works proceed. The company must pay to the state a fixed fee, exploitation fee, and other fees (article 15). The amount of the fees is determined by the Government Regulations. The Department of Mines and Energy regulates and supervises the implementation of oil and gas exploration and exploitation (article 16) including determining the conditions for permission to use foreign experts / personalities to be employed in the oil and gas companies (article 17). Oil and gas companies are obliged to report their compliance with all the guidance issued by the Department of Mines and Energy (article 17 paragraph 3). All mining rights of the oil and gas companies (which are not state companies) granted before the entry into force of Law 44/ 1960 were respected during a period of transition (which was decided by Government Regulation). The titleholders were given priority in considering them as contractor for the concession area. The mining rights of the state company that already existed before the entry into force of the Law 44 / 1960 became a new authorized mining right for the area concerned. Some violations of the provisions of this law are punishable by imprisonment and / or fine. 3. Pertamina State Oil Company / Law No. 8 / 1971 Indonesian oil and gas exploration gained momentum by the consolidation of state oil company Pertamina under Law number 8 / 1971. In fact, the Law number 8 / 1971 already established Pertamina under Government Regulation number 27 / 1968 which was later reconfirmed. INTERNATIONAL SEABED AUTHORITY 852
The purpose of the company is to develop and to carry out business in oil and gas in its broadest sense for the utmost prosperity of the people and the state, as well as to develop national resilience (article 5). The company was therefore given more importance than simply a business entity; it has also some national functions. The company’s activities are in the field of oil and gas, which includes exploration, exploitation, processing and refining, transportation and marketing. With the approval of the President of the Republic of Indonesia, the company can also expand its business activities to other related businesses (article 6 paragraph 2). This was the beginning of the expansion of Pertamina’s activities to all areas that were remotely related to oil and gas, which in the end stretched the capacity of the company very thin. In fact, the company almost collapsed in the 1970’s. The capital of the company belongs to the state, and originates from the state budget. The company is not authorized to have “silent funds” or “secret funds”. In practice, this rule is suspected to have been largely ignored. All Indonesian mining areas are reserved for Pertamina as far as oil and gas are concerned. The area for its direct operations is decided by the President of the Republic upon the recommendation of the Minister of Mines and Energy. This was regarded as the origin of a strong Presidential influence in the daily affairs of Pertamina. Pertamina can enter into production-sharing contracts with other companies (article 12 paragraph 1) and the President must approve the agreement or contract to this effect (article 12, paragraph 3). This was again widely regarded as the source of a strong Presidential role in Pertamina. In principle, Pertamina should deliver 60% of its income to the state, while the remaining 40% could be used for operational and other developmental purposes. The Government has the right to place at least 3 Ministers as members of the Board of Commissioners of Pertamina. These Ministers are appointed INTERNATIONAL SEABED AUTHORITY 853
- Page 810 and 811: SUMMARY OF THE PRESENTATION ON THE
- Page 812 and 813: in the Barents Sea there is still a
- Page 814 and 815: period that can last up to ten year
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- Page 820 and 821: quantity of data involved in the in
- Page 822 and 823: operation (PDO) is normally prepare
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- Page 826 and 827: CHAPTER 20 STATUS REPORT ON THE DAT
- Page 828 and 829: All the above-mentioned minerals oc
- Page 830 and 831: e water depths between 400 and 1,00
- Page 832 and 833: As far as the Government is concern
- Page 834 and 835: • Ordinance number 195, of Decemb
- Page 836 and 837: This tax must be paid up to January
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- Page 840 and 841: ANP may send a representative to fo
- Page 842 and 843: esources other than oil or natural
- Page 844 and 845: to the safety of persons and animal
- Page 846 and 847: found offshore Brazil. With regard
- Page 848 and 849: een discovered in the basin, includ
- Page 850 and 851: enhance oil recovery. He said that
- Page 852 and 853: g. Ordinance number 10 that regulat
- Page 854 and 855: He said that the environment has to
- Page 856 and 857: ids. These comprised five Brazilian
- Page 858 and 859: After oil exploration gained moment
- Page 862 and 863: and replaced by the President, and
- Page 864 and 865: (ii) Assure the safety of navigatio
- Page 866 and 867: explorations may continue concurren
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- Page 870 and 871: The contractor will recover all ope
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- Page 874 and 875: Processing of products is subject t
- Page 876 and 877: are more than 30 articles in the va
- Page 878 and 879: SUMMARY OF THE PRESENTATION AND DIS
- Page 880 and 881: Ambassador Djalal informed particip
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- Page 884 and 885: said that the remainder of the prod
- Page 886 and 887: and cooperation with Pertamina and
- Page 888 and 889: A participant wanted to know whethe
- Page 890 and 891: of CCOP/SOPAC was to promote and de
- Page 892 and 893: STAR was founded in 1985 in collabo
- Page 894 and 895: Since 1972, SOPAC has, on behalf of
- Page 896 and 897: France Seapso 1985-1986 Cook Is, Fi
- Page 898 and 899: polymetallic massive sulphides. The
- Page 900 and 901: crusts have also been found in area
- Page 902 and 903: Figure 2: Location Map of Known Pol
- Page 904 and 905: is currently no regional agency tas
- Page 906 and 907: The types of data that have been in
- Page 908 and 909: A new agreement between Japan and S
The purpose of the company is to develop and to carry out business in<br />
oil and gas in its broadest sense for the utmost prosperity of the people and<br />
the state, as well as to develop national resilience (article 5). The company<br />
was therefore given more importance than simply a business entity; it has also<br />
some national functions.<br />
The company’s activities are in the field of oil and gas, which includes<br />
exploration, exploitation, processing and refining, transportation and<br />
marketing. With the approval of the President of the Republic of Indonesia,<br />
the company can also expand its business activities to other related businesses<br />
(article 6 paragraph 2). This was the beginning of the expansion of<br />
Pertamina’s activities to all areas that were remotely related to oil and gas,<br />
which in the end stretched the capacity of the company very thin. In fact, the<br />
company almost collapsed in the 1970’s.<br />
The capital of the company belongs to the state, and originates from<br />
the state budget. The company is not authorized to have “silent funds” or<br />
“secret funds”. In practice, this rule is suspected to have been largely ignored.<br />
All Indonesian mining areas are reserved for Pertamina as far as oil<br />
and gas are concerned. The area for its direct operations is decided by the<br />
President of the Republic upon the recommendation of the Minister of Mines<br />
and Energy. This was regarded as the origin of a strong Presidential influence<br />
in the daily affairs of Pertamina.<br />
Pertamina can enter into production-sharing contracts with other<br />
companies (article 12 paragraph 1) and the President must approve the<br />
agreement or contract to this effect (article 12, paragraph 3). This was again<br />
widely regarded as the source of a strong Presidential role in Pertamina.<br />
In principle, Pertamina should deliver 60% of its income to the state,<br />
while the remaining 40% could be used for operational and other<br />
developmental purposes.<br />
The Government has the right to place at least 3 Ministers as members<br />
of the Board of Commissioners of Pertamina. These Ministers are appointed<br />
INTERNATIONAL SEABED AUTHORITY 853
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