Monday, January 16, 2017

ALWAYS THANKFULL to ALLAH the Most Merciful

Hi Folks, without us being aware, with the Blessings of ALLAH the Creator of this World that we lived in, we are being permitted  to be still alive and can enter the New Year 2017. We really have to be thankful to our Creator ALLAH  that we are allowed to be still alive, which for sure must have some real significant reasons why ALLAH is still permitting us to be still alive in this Beautiful and wonderful world that we lived in. 
  • By being permitted to practice  in the professional life carrier as an Independent Business Lawyer (Self-Employed) by ALLAH, for more than 18 Years, since 1st of June 1998, which formerly was allowed by ALLAH  to experienced blended combinations as Company Man - In-house Legal Counsel for more than 17 Years, in the Law Firm of Adnan Buyung Nasution & Associates (Nasution Lubis Hadiptranto) 5 Years, Vico Indonesia (Huffco Indonesia) 5 Years, PT Freeport Indonesia Company 5 Years,  accumulative,   the Writer of this BLOG,  must  always continuously keeping reminding  himself, to always allocate part of  his  daily 24 Hours time to read the Holy Al Quran, at least  1(one) ayat, a day Insya ALLAH, so that Insya ALLAH with the permit of ALLAH, we are guided by the Creator ALLAH to be on the Right Straight Path as been shown by the Prophets, during their period, as recited in many Surah of the Holy Book Al Quran  
  • Yes as a Moslem believer (meaning surrender and worshiping only to ALLAH, the Only One Creator of this Live), we must force ourselves to seek Enlightenment from  the Creator of this Universe, by reading the Holy Book, particularly as a Independent Business Lawyer, where we are dealing with different of interpretation in implementing the Agreements involving Business Aspects between the parties involved in such Contractual Business Transactions 
    We have to always remember to put faith in our Heart (Qolbu), by filling our Qolbu with the Holy Words of ALLAH recited in the Holy Al Quran, which    was sent down by ALLAH  to ALLAH's Messengers called the Prophets or Rasul of ALLAH continuously; 
  • Praised be to ALLAH that, the Writer of this Blog  was permitted by ALLAH to practice his profession  as a Business Lawyer for more than 35 Years since the year around 1979, and the Writer of this Blog, keeps on focusing in practicing his Professional Carrier as an Independent Business Lawyer. With the Blessings of ALLAH, he is permitted to practice his Professional, by serving Clients in the Business Circles related to Natural Resources, which includes Copper, Oil, Gas, Mining Minerals, Iron, Gold, Coal, Iron, Limestone, Bentonite,  and recently assisting Client involved in the Drilling of Production Wells of Geothermal and Injection Wells.    
  • His motto in running his Professional Carrier,  is striving to develop  in Believing and  maintaining faith to ALLAH as the Creator of this World. You can imagine the Temperature Heat Decree being tapped and captured in  the Geothermal Production Wells can reach 270 Degree, which can boost turbine to generate electricity.  The potential magma from the earth can boiled the water which was sent down to the earth by the Creator of this World from the sky through the mechanism being vaporized by the Sun of the Sea Water and collected as Clouds, and poured down  to the earth, and  become hot steam  to be used for energy in many ways. 
  • If you are practicing as a Professional, are you practicing it in accordance with the guidance and enlightenment from the Holy Books ?   Do we practiced our Professional by suffering or disadvantaging or making loss to others ?   Those are some of the tough Questions that we have to answer to the Creator  of this live and the Creator of us human beings.  Of course for sure this "faith" issue is the element of "Faith" or we called it "Iman" in the Holy Book of Al Quran, where with the permit of ALLAH, if we seek the Truth Guidance from ALLAH, based on Allah's words we can be guided by ALLAH to build and develop our Faith in believing ALLAH as the Creator of this World  where we lived in until when the times comes to an end to each of us.       
Jakarta, 16 th January 2017
Agung Supomo Suleiman
Independent Business Lawyers  
                 

Saturday, September 10, 2016

EXPERIENCING TEAM SURVEY DOING CONSTRUCTIONS BUSINESS IN UAE

Well Folks,  it has been over more than 18 Years since 1st June 1998, when Indonesia was hit by the Economic Crisis, that the Writer of this Blog as an Independent Business Lawyer had jumped - up from the "Certainty World" to the "Uncertain World", being self-employed which is really challenging and exiting,  because during his  18 Years Life Journey as a Self-Employed - Independent Business Lawyer  using Brand Name AgsS Law - or sometimes SACO Law the abbreviation of  Suleiman Agung & Co,   you are not sure what will happen to you in the life journey ahead of your professional carrier,  from year to year life journey.
At one time you are busy and buried  with your work load, but at another point of time,  you may be  wandering as to whether there will be another Business Project which requires your professional Legal Services relating to the Legal Aspects surrounding such Business.
 At one time the Writer of this Blog  as an Independent Business Lawyer by the permit, blessing and merciful of ALLAH,  had been appointed as one of the member of a Survey Team to conduct research and for collecting the necessary  construction business information in the United Arab Emirates (UAE) to explore Doing Construction Business work in that part of the Middle East Countries. The main significant purpose of the research was among others  gathering all the necessary data and business information on Doing Construction Business in United Arab Emirates. The research was done for around 14 Days, where as the result of such Research, we managed to gather significant Information and resulted making the Booklet called Doing Construction Business in United Arab Emirates.The work was solely done to enable the Indonesian Construction to pursue business in UAE.
During the time the research was conducted, the Active Construction Crane in the World was 25% (Twenty Five Percent) occurring in that Part of the World, which for sure would attract all Constructions Companies to get  part of the Construction Project in UAE. We also gathered information that 1 (one) Ton out of the 8 (eight) Ton of Gold Worldwide being sold in the Market Place was happening in Dubai during that period of time. Amazing isn't. We had met the Abu Dabhi Chamber of Commerce and Industry, the UAE Ministry of Public Works, Ministry of Labour and Social Affair, The Department of Economic Development of Dubai as well as privates institutions of investors, consultants including several reputable companies such as Isthitmar, United Eastern Group, Bloke Stone Investment Consultants Co LLC-Abu Dabhi, Bin Laden, MCM and other investors and consultants and architect including the Indonesian Engineers and Architecs who are working in the multi national Company in Dubai. We really gather significant information and data from all those Officials and Investors, which enable the Survey Team to assist the Indonesian Government particularly The Ministry of Public Works to produce the relevant booklet to be used as an  initial guidance by the Indonesian Construction Companies to conduct their business in UAE.          
That was part of the experience that the Writer was involved in getting the significant data relating to the Construction Business in United Arab Emirates, where the writer was being one of the Editor of such Booklet to be used by Indonesian Companies such as Construction Companies, Architect who are interesting to explore doing construction business ventures in that Part of the World, where the Indonesian Government had really  encouraged the Indonesian construction to enter the market with diligent and good preparation to enable them to venture and pursue construction business opportunities abroad particularly in UAE. The understanding of the political, economic, social, legal and cultures systems and related significant business practices are of important step for those Indonesian Companies who are interested to penetrate their business construction abroad.
Well, the above Life experience, which  the Writer was engaged and involved,  really contributed in expanding and developing  our mind to be more active in our efforts to contribute to the development and growth of the Business Players in this  Country to be able to participate locally and internationally. In ending this writing, the Writer wanted to dedicate this Writing to one of the Survey Team member who had passed away, namely Pak Wahyu Prapto Yuwono, which in the above photo was on the very left side, where we all pray to ALLAH the Al Mighty,   asking  that his  contribution and dedication as member of the Survey Team in enabling the Booklet Doing Business In United Arab Emirates, will be accepted and regarded by ALLAH as his good deeds to the Construction Business Society in Indonesia as well as in UAE, Aamiin YRA

Jakarta, 10 September 2016
Agung Supomo Suleiman     
             
         
 

Tuesday, September 06, 2016

NEW ALTERNATIVES IT ERA SYSTEM NETWORK FOR LAWYERS

We are facing New Alternatives IT Era System Networks for Lawyers, where we observe  that Individually, the Lawyer has only small overhead, since the size of each individual Lawyers is not big at the ground land Level, however, as Networks of Lawyers,  which are linked to each other by a certain IT office, acting as the Pooling Internet Connected Level, they could develop a "More Broader  Network of Individual Independent Business Lawyers" who has gained In-depth Experiences in their respective specialist Expertise. This trend is really globally occurring,  as we can observe :
NETWORK OF Independent Business Lawyers :
            http://www.ubiquity-law.eu/
Attorney Happiness and Freelance Practice
The Rise of Freelance Lawyer
After experiencing a rather long, lengthy and bumpy road, at the present moment,  the writer of this Blog, is practicing  Solo Independent Business Lawyer   under the Brand Name - AgsS Law or sometimes SACO LAW  the abrreviation of Suleiman Agung & Co 
He seeks and tries to balance live between practicing as a Professional Independent Business Lawyer, who serves and provides Professional Legal Services to Business Clients in a responsibility manner, in a more Flexi Time and Flexi Place, in the sense, that he can control and  master the "time and place to work", without exploiting nor sacrificing himself nor other Lawyers times,  to work lengthy long hours in a 1(one) centralized Cubical Office, from early Morning until late night, which frequently, resulted sacrificing their time with their families  as well as sparing time to read the Holy Book from the Creator as Life Guidance in this temporary World.
Well life is a matter of Choices,  how to manage our Professional Work and time. By welcoming the New IT Era progress and development, there will be many alternatives ways and manner to practice our Professional carrier path,  more freely in terms of managing our time and place to work, by Interconnecting between several Individual Professional Expertise in a Larger Network  through  IT Office, which does not require renting or owning a Conventional Centralized Office at the Ground Land level, but more closer Inter Connected Networks through IT Network, among the Expertise. In Indonesia you can also find Ahli Hukum
This trend can also be seen in other field of business,  among others in the Alternative Hotel such as  AirBnb for members who wants to venture as Host for Guest, or  Uber as alternative mode transportation, where Individual members can apply and register as Members, having  their Own Vehicle (either renting/leasing or Owning), by which in Indonesia you may find Grab Car and Grab Motor Cycles, and many Online Shops; We may also find Freelancer.com,  where you can also register your self either as a Party who needs a certain Work, or as the Worker who will register as the Services Provider of a certain type of Services.  
In this Internet IT  Pooling System, we may observe that this can be a Place for competing each other, among members registered in such One Polling Internet Base Office, resulting  competition in Lowering fees  offered for doing similar required Services.
Biding among Professional Services provider, is done, by Competing with Lowest Fee to Customers,  in order to get a Work. At the end of the day, the Customers or Clients, shall decide which of the Professional are really giving good Quality Services they need and require. The indicator of their Level of  Performances can be seen and shown in the Rating and Review,  made available by the Provider Intermediary - to be filled by the Customers and Professionals who are all listed - registered in such Pooling Interconnected Website Office.As an Independent Business Lawyer, the writer of this Blog, have been Rated and Review by the User within Ahli Hukum Website as shown  in  https://ahlihukum.com/listings/agung-supomo-suleiman/

Well, I think the above are my early assessment and observation on the  NEW ALTERNATIVES  IT  ERA SYSTEM  NETWORK  FOR LAWYERS. So please be prepared to adjust ourselves in this speedy  IT Global Network Connections 

Jakarta, 9 September 2016
Agung Supomo Suleiman
Independent Business Lawyer                   
           

NEW ALTERNATIVES IT ERA SYSTEM NETWORK FOR LAWYERS

We are facing New Alternatives IT Era System Networks for Lawyers, where we observe  that Individually, the Lawyer has only small overhead, since the size of each individual Lawyers is not big at the ground land Level, however, as Networks of Lawyers,  which are linked to each other by a certain IT office, acting as the Pooling Internet Connected Level, they could develop a "More Broader  Network of Individual Independent Business Lawyers" who has gained In-depth Experiences in their respective specialist Expertise. This trend is really globally occurring,  as we can observe :
NETWORK OF Independent Business Lawyers :
            http://www.ubiquity-law.eu/
Attorney Happiness and Freelance Practice
The Rise of Freelance Lawyer
After experiencing a rather long, lengthy and bumpy road, at the present moment,  the writer of this Blog, is practicing  Solo Independent Business Lawyer   under the Brand Name - SACO LAW - AGUNGSS. 
He seeks and tries to balance live between practicing as a Professional Independent Business Lawyer, who serves and provides Professional Legal Services to Business Clients in a responsibility manner, in a more Flexi Time and Flexi Place, in the sense, that he can control and  master the "time and place to work", without exploiting nor sacrificing himself nor other Lawyers times,  to work lengthy long hours in a 1(one) centralized Cubical Office, from early Morning until late night, which frequently, resulted sacrificing their time with their families  as well as sparing time to read the Holy Book from the Creator as Life Guidance in this temporary World.
Well life is a matter of Choices,  how to manage our Professional Work and time. By welcoming the New IT Era progress and development, there will be many alternatives ways and manner to practice our Professional carrier path,  more freely in terms of managing our time and place to work, by Interconnecting between several Individual Professional Expertise in a Larger Network  through  IT Office, which does not require renting or owning a Conventional Centralized Office at the Ground Land level, but more closer Inter Connected Networks through IT Network, among the Expertise. In Indonesia you can also find Ahli Hukum
This trend can also be seen in other field of business,  among others in the Alternative Hotel such as  AirBnb for members who wants to venture as Host for Guest, or  Uber as alternative mode transportation, where Individual members can apply and register as Members, having  their Own Vehicle (either renting/leasing or Owning), by which in Indonesia you may find Grab Car and Grab Motor Cycles, and many Online Shops; We may also find Freelancer.com,  where you can also register your self either as a Party who needs a certain Work, or as the Worker who will register as the Services Provider of a certain type of Services.  
In this Internet IT  Pooling System, we may observe that this can be a Place for competing each other, among members registered in such One Polling Internet Base Office, resulting  competition in Lowering fees  offered for doing similar required Services.
Biding among Professional Services provider, is done, by Competing with Lowest Fee to Customers,  in order to get a Work. At the end of the day, the Customers or Clients, shall decide which of the Professional are really giving good Quality Services they need and require. The indicator of their Level of  Performances can be seen and shown in the Rating and Review,  made available by the Provider Intermediary - to be filled by the Customers and Professionals who are all listed - registered in such Pooling Interconnected Website Office.As an Independent Business Lawyer, the writer of this Blog, have been Rated and Review by the User within Ahli Hukum Website as shown  in  https://ahlihukum.com/listings/agung-supomo-suleiman/

Well, I think the above are my early assessment and observation on the  NEW ALTERNATIVES  IT  ERA SYSTEM  NETWORK  FOR LAWYERS. So please be prepared to adjust ourselves in this speedy  IT Global Network Connections 

Jakarta, 9 September 2016
Agung Supomo Suleiman
Independent Business Lawyer                   
           

Sunday, September 04, 2016

BREAKTHROUGH NETWORK CONTACTS BETWEEN LAWYERS AND CUSTOMERS

In Indonesia you may now find   https://ahlihukum.com/ahli-hukum-launched-beta/  
which was launched as a Directory List of Law Firms, Lawyer as well as Notary conducting their Professional Services  in Indonesia. This progress and development  in the Legal Society in Indonesia is really a positive trend in this IT and Internet Global Era.
According to the Founder of this Website Ahli Hukum, Ahli Hukum Website will also  act as Intermediary between  Customers who needs Professional Lawyers Services and the Professional Lawyers.
As an Independent Business Lawyer, the writer of this AGUNGSS BUSINESS LAWYER NOTE  Blog had also register and "Claim  his Profile" in   https://ahlihukum.com/listings/agung-supomo-suleiman/.
From my observation as an Independent Business Lawyer,  the trend of Pooling List of Lawyers through Website is happening around the Globe. For Instance in UK there are several Websites such as Association Of Independent Business Lawyer http://www.onhandcounsel.co.uk/index.php?option=com_content& and also view=article&id=12&ABLGLOBAL

Thus,  besides acting as the List Directory Website of Lawyers, it also will conduct as An Intermediary between the Client-Customers with the Required Lawyers;
 What makes us most interesting among others are that there will be a "Rating and Review" made by the User /Customer or Clients in such Website Intermediary upon their Experiences in using  each and every Lawyers listed, which can be showed as sort of "Ratings Performances" of the Lawyers by the Users, shown as Numbers of Stars, which can be read by any  Customers, through  the available "Review column",  who requires certain Legal Services including translating Legal Documents. 

The writer of this AGUNGSS BUSINESS LAWYER NOTE as an Independent Business Lawyer who is using the Brand Name of SACO LAW - AGUNGSS,  had also been Rated and Reviewed  by the User in Such Ahli Hukum Website as shown in https://ahlihukum.com/listings/agung-supomo-suleiman/. 
This will be helpful for other Customer /Clients who requires such similar Services from  Lawyers who are listed in the Directory Listing of Lawyers in such Website. Thus,  besides the Conventional Pooling in the Office, with having this Website Intermediary, who is acting as Facilitator/Mediatary between the Customer/Clients and the Lawyer, this will be a "Breakthrough" of "Direct Network Communications" between each and every Lawyer who are Listed in the Website Intermediary such as Ahli Hukum Website with their Clients/Customers. As you can see the Handphone of each Lawyer are given in their List Profile. Thus, Marketing to get Clients which are Conventional done through Partners of a Law Firm, could be made directly by Each and Every Lawyer listed in the Website Directory of the Owner of the Website Pooling of Lawyers, Lawyers, Independent Business Lawyers. 
The Evaluation Performance of each and every Lawyers are being Directly Conducted by the User/Customer experiencing the Services provided by the respective Legal Servives as shown in  https://ahlihukum.com/listings/agung-supomo-suleiman/. 
 Thanks and Welcome in the New Breakthrough Network Contacts Between Lawyers and Customers.

Jakarta, 13.40 West Indonesia Times 
Agung Supomo Suleiman     
Independent Business Lawyer
   

Thursday, May 12, 2016

Earlier Large Immigrants to America and Australia engaged in Mining Operations

Yes, I am really glad I have this AGUNGSS BUSINESS LAWYER NOTE Blog with the Content containing  Articles covering  legal aspects involved in the Business done in Indonesia particularly in the Oil Gas, General Mining Sectors. These includes Financing Engineering Mechanism arrangements how to raise  funds, required to pursue business operational ventures in the Oil Gas and General Mining sectors covering the upstream activities from Pre - Operating stages,  exploring, exploiting, producing, up to the Down Stream such as  refinery,  smelter  and selling the Mineral and Carbon products. 
  •  From my experiences as Independent Business Lawyer, we captured  that  getting funds during the Explorations stage where no yet Cash-in are generated, shall be  the significant elements  faced by Indonesian Companies. 
Frequently, during this Commitment Expenditure Phase  in the Oil Gas Exploration stages, after drilling several explorations wells,  the Indonesian Companies  will require more funds to perform their Exploration Drilling Activities, upon which they will  seek additional funds from Investors to participate in their Exploration Drilling Wells. As we know the rule of thumb of success ratio in the Oil and Gas business is : 8 : 1 meaning after drilling 8 Wells only 1 Well is a Discovery Well and the other 7 Wells are dry Hole. 
We can observed that the Indonesian Local Senior Professionals, who had experienced in the management, technical, economic, audit,  human resources, legal  knowledge and know how during their assignment in the various  Foreign Oil Gas and Mining Companies operating in Indonesia, shall gather a Working Team and start  to discuss, prepare and  make proposals and  presentations to several Indonesian Business Companies / Investors  pursuing them to start venturing in Oil Gas and Mining  Business Operations in Indonesia.
These Senior Professionals formerly had learned  and gained knowledge and experiences from their former business pioneers originating from several American Oil Gas Companies such as Stanvac, Exxon, Mobil Oil,  Chevron, Caltex, Vico, Unocal and several Australian Mining Companies who operates their business in Indonesia. Based on their experience they managed convinced the Indonesian Investors that a Prospect Oil Gas Discovery will be feasible based  on their geological studies and reservoir engineer studies.
As we noticed and understand from past histories,  these American Oil Gas Companies had experienced conducting their Oil Gas and Mining Ventures in their Country, which started from the Early Gold Rush Ventures performed by  their Ancestors who were American Pioneers Entrepreneurs originated from  British and Scotland Immigrants who immigrated from the Kingdom of Great Britain, during the European colonization in America in the 17th Century. Actually the Spanish, French and Dutch came first as immigrant to America. Around the year 1000, a small number of Vikings also arrived in America.
It was 500 Years later that the great European migration started to begin. You can imagine crossing the Atlantic will take over more than 2 to 3 Months with the risk of seasickness, lack of food, and diseases. But the high hope to gain political and religion freedoms kept the Europeans immigrating to America. In the 1820-1880 The Industrial Revolution had begun, where slave trade was nearly ending. Railroad was constructed, since America was pushing west, for which thousands of immigrants could found work on the trans-continental road, where many towns were settled along the way. The news of this California Gold Rush (1848-1855) had spread around the world, which attract immigrants from Asia and Europe. Gold was found by James W. Marshall at Sutter's Mill in Coloma, California.  These Gold Rush News had attracted approximately 10 thousands immigrants not only from Asia and Europe but also from Australia also and Latin America.  The Non-native population in California become 100,00 which pre-1948 the figure was less than 1,00. A total of $2 billion worth of precious metal was extracted from the area during this Gold Rush which peaked in 1852. https://www.google.com/search?q=california+gold+rush+1849&client=firefox-b&tbm=isch&imgil=Iyt_QTybXok_eM%253A%253B5LwzM7kP1B27nM%253Bhttp%25253A%25252F%25252Fwww.texasescapes.com%25252FThey-Shoe-Horses-Dont-They%25252FTexas-and-the-California-Gold-Rush.htm&source=iu&pf=m&fir=Iyt_QTybXok_eM%253A%252C5LwzM7kP1B27nM%252C_&usg=__BFJUW4b-tir-uuUTGhz6wy0DJPk%3D&biw=1360&bih=657&ved=0ahUKEwiPsZ6fqtTMAhUKHZQKHbxNDGQQyjcIJw&ei=J1s0V8-BH4q60AS8m7GgBg#imgrc=Iyt_QTybXok_eM%3A
Back to the British Immigrants, we understand that they left  their original home town in the Kingdom of Great Britain in Europe  to seek and become the Early Pioneer Large Immigrants and Settlers in North America, in their efforts to  strive  gaining  Equal Opportunities Rights before the Law, freedom of religion and politics reason. They felt that were not treated  equally, since they were  not  borne from the Aristocrat Blood  as well as the Land Lords Higher Strata who owns lands in Great Britain. The Spanish came on the end of the 16th Century. The British settled in New England and Virginia, the Dutch in New York and New Jersey, and the Swedish in Delaware. We also noticed that immigrants from Africa and the Caribbean were brought by force in 1619. We observe from the data we gathered in the web source that among the British immigrants and settlers were indebtured servants willing to trade 4 to 7 years of unpaid labors for a 1(one) way ticket to the colonies and the so called promise land of America.
Thus,  their goals and targets were to "boost and jack up" their hierarchies strata status from "Second Class Citizens"  to become  a more higher hierarchies status,  which they are unable to reached  in their original place in the Kingdom Monarchy of  Great Britain;  This  is really  similar  with  the Lower Strata Level  of Society in the Hindu Culture in India  called "Paria",  where these group of people are automatically born to be the lower level class  citizen since they were not being born  as the Higher Brahma Strata in the Public Society.
As an outsider observer, I perceive that the Declaration of Independence, which is a statement adopted by the Second Continental Congress meeting at Philadelphia, Pennsylvania on July 4, 1776 which announced war by the 13th American Colonies with the Kingdom of Great Britain, which regarded themselves as 13 Newly Independent Sovereign States, which are no longer under the British Rule, whereby they formed a New Nation called The United States of America. The important part of this Declaration is that " All men are created equal.     
The "Strong Popular Motto"  which we understand and is frequently heard is that "North America is a "Free Country", where any person can achieve their Goals and Targets to the Highest Level in the Society;  My understanding of this Declaration of Independence reflects Rebellion by the Immigrants and Settlers  in North America   against their Non - equal treatment politically, structurally  and legally. 
Well, folks these is part of  my story as a  Professional Blogger to write and share  perceptions and understandings of the World we are living, where at this present moment Europe experienced the Massive Immigration Waved coming from Syria, Iraq, Afghanistan and all part of the Middle East through Turkey Entry Point,  where we can observe, that there is a Huge Massive Change Happening  taking place in such Region,  due to the War Crisis,  involving their people who also seeks to find a better quality of life to be freed from the Established Monarchies and Repressive Ruling, where many Big Countries are also having a Big Role involved in this War Crisis, effecting the Oil Gas, Energy Energy Prices and Supply due to  Real Geopolitics Power Play.      
Cheers, 
Jakarta, 12 May 2016
Agung Supomo Suleiman   

AGUNGSS EXPERIMENTAL BLOGS

Friday, April 22, 2016

NO DEAL REACHED FOR FREEZING OIL OUTPUT IN DAHA CONFERENCE

We observe from the media, that since Iran is not willing to freeze its production due to its effort to recovery its financial state budget following the lifting of Western embargo sanctions, causing failure in the Daha Conference on Sunday April 17, 2006  in reaching an agreement or a Deal  to freeze and  stablize the output of Oil Production  by Opec and Non - Opec who gathered in the Daha Conference after Saudi Arabia demanded Iran to join in such freezing of oil production. As we understand Opec's accumulated production contributes 40% of the Oil Production in the Market Global Share.
  • There were 18 Oil Nations including Russia a Non - Opec delegate, who participated in the Daha Conference at Qatari capital of Doha which was previously expected to be able to  reach a deal,  since every stack holders in the Global Oil  business worldwide  has really  suffered  losses  due to the Oil  Price collapse since June 2014.  From the media we understand that there was a fierce debate relating to the wording of communique - including between Saudia Arabia and Russia. Thus the delagates and the miniters had announced that "No Deal  Had Been Reached."
As an Independent Business Lawyer from the Legal Aspects, the Writer of this AGUNGSS Business Lawyer Note Blog  has the impression that  Saudi Arabia was taking the lead in emphazising that Iran as the Opec Member had to agree to freeze its oil Output, since it appears that  Teheran was absent in the talks in such Daha Conference.  

One interesting view from  the legal aspects  in  reaching an agreement or a deal, we observe that since Iran is just only 1(one) member or participant in the Daha Conference who was absent in the talks,  out of the 18 (eithgteen)  Delegates,   we can say that the Deal to Freeze could actually be easily reached,   since only 1(one) delegate was absent,  which leaves the other 17 (seventeen) Delegates to be the  majority vote in the conference and can  therefore easily strike  a Deal to freeze their oil out put production.  As we understand from observes oil analyst  they say  that it will take a rather long periodic of time for Iran to build its Oil infrustructure,  before it could produce and tab its Oil Market Share,  which will be rangging from 500 barrels/per day up to 3 Million barrels per day. 

  • However, from the Geopolitical Perspective, we understand that Saudi Arab and Iran are confronting each other in the Middle East Syria Crisis war, causing Saudi Arab as the Major Oil Producers in the Arab Regional Countries who assist Yemen, and other Middle East Countries to have a tough strong hold in the Vote to demand   Iran to join in the freeze as a condition for  Saudi Arab  to agree in freezing its oil output production.              
This development of course will be really negative signal to the Global Oil Industries causing fears that major oil producers will not end their  battle for the market share, particularly after a threat from Saudi Arab to raise its oil output steeply if "No Freeze Deal of the Oil Output Production cannot be reached". Well  it is really a disaster if supply and demand  of oil is not being the real elemen causing the fluctuation of the Oil Prices,  but is rather more stronger affected and pressured by the Oil War Geopolitical Elemen  as the Major Factor causing real suffer and major losses to other stackholders within the Oil Business Globally, including affecting the Indonesian Economy,  not to mention the internal political tug of war battle  within the Political Elit surrounding the Oil Business Pragmatical approach in Indonesia,  particularly if "Huge Potential of Oil and Gas Discover",  has been predicted to be discovered as shown in  the Masela Block - Paradox Pros and Cons. 
Cheers.

Jakarta, 22 April 2016
Agung Supomo Suleiman
Independent Business Lawyer who is concerned on the Oil Gas and Mining Energy Industries in Indonesia 
 

Tuesday, March 08, 2016

SNAPSHOTS OF OIL PRICES PLUNGGING ISSUES - URGENCY REQUIREMENTS TO SOLVE THIS OIL CRISIS

As a Freelancer Independent Business Lawyer you are sometimes very busy working long hours because of the load of  work  requested  by Client,  among others  Drafting Oil Business Agreements relating to the sale of some portion of  Equity by the Owner of an  Oil Company to Investors, to  pursue it's business Operations.
  • However  there are times, where we are not too busy, perhaps   due to the Collapse of Oil Prices Globally. We all experienced that within this 2 Years since June 2014, the Oil Price  plungged from U$D 100 / per Barrel  into U$D 50  and than  U$D 27. This Crude Oil Prices have fallen more than 70%  from Serbia to the Arabian desert, which caused Oil Producers Countries and Oil Companies loosing money. It is not only an Economic issue but also a Geopolitical issue.  We  remember that in the 1980-ies  the Oil Prices also tumbled down  causing  the collapse of Sovyet Union  and the break down of the Berlin Wall. From the news we read,  we understand  there was sort of a Geopolitical Warfare, in which the Russian had blamed the West. 
At this present Oil Crisis, we can also observe from the Media that Russia was also claiming that there is a conspiracy by the Saudi Arabia and US to punish Iran or influence the economy of Russia who supported the Regim in Syria. Such claim maybe have a point  to argue or it may not be the case. From analysis in the media, we understand  there maybe 2 (two) sides of a Coin in this kind of situation. It depends who you are and where you are. For Oil Importing Countries actually it's good because they can reduced their cost for buying such Oil to fill in their State Budget.  In this case Europe is gaining some benefits of the Low Oil Prices and also Natural Gas is going to be cheaper.
But for the Oil Producers and Oil Country exporters which  are selling Oil this really hurts their financial condition.  Russian Oil Companies are selling Oil  below production costs,  where people are just exploitating from the on going projects existing whatever reserve they have and nobody is planning for long period of time.  
From the media we got the information that Saudi Arabia has U$D 600 Billion Worth of  Revenues stached away in some places, to a relative extent,  but it can quickly burn out  Saudi's  long saving due to its Deficits. We observe that Russia is pumping its production on its  maximum, before sitting and negotiation with Saudi Arabia; According to the expert analysis  this is a normal strategy used by Oil Producers in negotiation to stop the over supply of oil in the market which are also frequently used by OPEC members.
  • We can also see that  from the Geopolitically perspective, Europe is facing flood of imigration from the Middle East particularly primarily from the crisis in Syria. We can watch in the media television there are many imigrants coming to Greece through Turkey.  So there exist Immigrant crisis in Europe. From  the media, according to the analyst, Saudi uses its saving to fund Yaman, Egypt, Oman, Bahrain, therefore it is not only using its monies  for its Domestic requirement. 
Thus, we can see that according to the analyst in the media there is also an urgency requirement to  resolve this Crisis,  where it is a net minus for everybody in the macro economic level as well as in the Geopolitical level.  We observe OPEC, including Saudi controls nearly 40% of World's Oil Supply.  Geopolitics seemed to make a deal problematic. As we can see Russia is helping President Bashaar Assad and the Saudis are suppporting the Assad Opposition fighters. However both have a common economic interest to stabilize the Global Oil Price; They both agree to freeze their production. In the Doha Agreement it appears that Venezuela and Qatar was also party to the Agreement, however the question may arise :  are they able to pursuade the rest of the Opec members to agree upon a production freeze. The other issue is Iran, whereby Iran will defend it's right to raise oil exports to the level that they prevailed before Western Sanctions was imposed in 2011.     

  • How about in Indonesia ? Indonesia is no longer just Exporting Oil and gas but Indonesia is also a Net Importer of Oil. Indonesia produced 790,000 barrels per day (b/d) of Crude Oil and condensates   in 2014, the 3rd Lowest level among OPEC members. Indonesia originaly joined OPEC in 1962 but suspended its membership at the begining of 2009. Indonesia's decision  to suspend   in Opec membership was due to the growing internal demand for energy, declining crude oil and condenste production in mature fields, and limited investment to increase production capacity. 
As we know  Indonesia had become a Net Importer of Petroleum and other liquids by 2004 after domestic demand exceeded production, as Indonesia's production of petroleum and other liquids had declined since the mid-1990's. We noticed that  OPEC had notified  Indonesia that it plans to accept Indonesia's request to re-activate its membership. Based on Opec's statute, it allows as a member any country that is substantial net crude oil exporter, has similar interests to Opec, and and is accepted by 3/4 of full members. Although Indonesia is a net Oil Importer, Indonesia continues to export crude oil and condensates. Despite of it's Oil demand, we can observe that Indonesia's Oil and Natural gas sectors continue to play as  an important element of the Country's economy. Indonesia is in present purchasing crude oil and petroleum product through 3rd Parties or Traders and desries to have a direct acces to long term crude oil supply contracts through negotiations between  National Companies of OPEC members. 

  • We observed from the news in the media  that  Indonesia plans a number of upgrades and expansions to existing refiniries to become operational. From the media-news,  we noticed that Indonesia has also proposed to build 4 New Refineries each having a capacity of 300,000 b/d. Since Indonesia struggles with the level of Investment needed to offset the declining of the Oil and Natural Gas production and the lack of adequated infrastructure, Indonesia is really striving hard to attract  Investment in both upstream and downstream sectors with OPEC members. We can observe that Indonesia is currenntly in discussions with several OPEC members concerning the Crude Oil Deals as well as Investments in Refinery Projects.  
In the other side due to the plungging Oil Prices, after previously taking effeciency measures to minimize the impact of the plungging Oil Prices we may see several  Oil and Gas Companyies are now being forced to take a stiffer action of Lay-Offs and streamlining it's staff members. This also are being suffered by Services Companies, globally. 
  • Apart from the above issues, there seems to be kind of a tug of war and different approaches concerning the Development of the Masela Blog in Maluku,  between Ministerials level from the Cabinet, which emerged in public media, as to whether it is more efficient performing off-shore scheme or onshore,  which we feel  must be immediately solved by the Highest Authority of this Nation, to give Certainty to Oil/Gas Investors.                
Jakarta, 8 Maret 2016 Agung Supomo Suleiman

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