Facts about Shell, the global oil giant that turns out to be the “Bloody” RI

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Aeilko Jans Zijklert is a European from East Java who has decided to move to the east coast of Sumatra. He worked on tobacco plantations after the Dutch East Indian government opened investments in private plantations in Sumatra in 1880, at which time the Dutch East Indies were implementing forced cultivation.

After visiting Sumatra, this plantation foreman found traces of large oil reserves in Langkat, north Sumatra. After investigation, the oil content contains 62% paraffin.

tailor word pun he drilled his first well with license obtained from the local ruler, the Sultan of Langkat, in 1884. However, exploration failed because the well was dry or did not produce much oil.

A year later, him he tried his luck again. This time him dig in the Telaga Said area near a village called Pangkalan Brandan in North Sumatra.

On the second occasion, luck was on his side tailor. He managed to find oil from that location.Soon after, the well began producing commercial quantities.

In 1890, after making huge profits from oil, Zijlker felt confident enough to found a company called the Royal Dutch Company, which is listed in The Hague.

When Zijklert died on December 27, 1890, his partner De Gelder, who was working with him to drill oil, discovered another new well in Pangkalan Brandan.

Drilling was carried out immediately and an oil delivery facility was also built in Pangkalan Susu so that the oil could be exported by sea.

In 1898, the Dutch East India government had also completed construction of a storage facility and pier that would become the first oil shipping port in Pangkalan Susu.

Meanwhile in Kalimantan in 1897, another company, Shell Transport and Trading Company Ltd, also discovered oil in East Kalimantan and in the same year established a small refinery in Balikpapan, which began operations in 1899.

This refinery in Balikpapan later became one of the forerunners of Pertamina. At the turn of the century, from the 19th to the 20th century, many oil wells were found in North Sumatra, South Sumatra, Central and East Java and East Kalimantan.

Oil refineries have also been established in each of the oil-rich areas. At that time, there were 18 companies drilling for oil in Indonesia.

In the early 20th century, of the 18 oil companies, the two that stood out most in terms of oil production were Royal Dutch and Shell Transport.

Shell Transport itself is a company founded in 1897 by the Englishman Marcus Samuel. He is also an entrepreneur in the spice trade have a good time sale of shellfish.

That’s why, Marcus Samuel then named his new company with the name Shell which literally means shell.

To compete with Standard Oil, in 1902 Shell and Royal Dutch decided to form a joint venture called The Shell Transport and Royal Dutch Petroleum Co. srl

This joint venture was deliberately formed to manage the shipping and marketing of Indonesia’s exploited oil in a number of countries.

In its development, Royal Dutch quickly developed much better than Shell. Instead of working together to create a joint venture, Marcus Samuel then invited De Gelder to merge each company into one.

After the agreement of both parties, a new joint venture between Shell and Royal Dutch was born in 1907, called the Royal Dutch / Shell Group of Companies, a company that is now known as Shell in various countries.

Not satisfied with the merger, the Royal Dutch / Shell Group then acquired another oil company in the Dutch East Indies called Dordtsche Petroleum Mij in 1911.

[Gambas:Video CNBC]