1.
GV PAN EXTERIOR Offshore oil rig at Bekapai field with flames pouring from separators
0.18

2.
SV Men going to work on rig (2 shots)
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3.
SV PAN Piping equipment on rig
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4.
SV ZOOM INTO CU Man looking at oil pressure gauges
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5.
GV Chimneys and man standing by oil barrels
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6.
GV Oil flares at shore refinery at Seperin and refinery works (3 shots)
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7.
GV Aerials with oil and refinery at Balikpapan (5 shots)
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8.
GV Oil tankers at sea off Seperin
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9.
GV new village for oil industry workers at Balikpapan and sign "International School, Balikpapan, Indonesia" (2 shots)
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10.
GV Living accommodation in village (2 shots)
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11.
GV Fire station and sign on door of fire tender 'Union Oil Company of Indonesia'
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12.
GV Tennis courts and swimming pool (4 shots)
2.02




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Script is copyright Reuters Limited. All rights reserved

Background: INTRODUCTION: With an ever-increasing income from oil and gas, Indonesia plans to expand its economy over the next year to improve living standards and to make the country more self-sufficient. Indonesia is the largest exporter of oil and liquefied natural gas east of the Gulf. The government expects a net income from these exports of 11.4 billion dollars in the 1981-1982 financial year.

SYNOPSIS: In Kalimantan, there are vast hidden resources in natural riches -- timber and oil are the most outstanding. In 1965, all of the island's oil wealth and assets -- at sea and on land -- were taken over from the British company Shell by Pertamina, an organisation run by the Indonesian state.

Pertamina has contracts with 15 foreign oil producing groups working in Kalimantan. This means the government company gets 85 percent of the oil proceeds after operational costs have been deducted. Only four of these contractors have been successful with their oil and gas finds, including Union Oil of the United States and Total Indonesie of France.

So far, only 40 percent of Indonesian's potential oil and gas areas have been explored. And Pertamina says the chances of finding more are good. There's been a dramatic change in Indonesia's fortunes since President Sukarno stepped down after an abortive communist coup in 1965. At that time, the country was on the verge of bankruptcy. There was an acute food shortage -- and the oil industry was entirely disorganised.

New housing complexes at Balikpapan are rented from Pertamina by groups like Total and Union Oil. Their boost to the economy brought Indonesia a long way since 1965. More children are at school. Rice supplies have greatly increased. And the country is paying off a foreign debt that's less than nine percent of its export earnings. But Indonesia's fast-growing population remains a problem. Improved health care could increase the population from 147 to 300 million people in 30 years time.