Friday, October 10, 2008

Experience Conducting Legal Due Dilgence

There were several instances where we were requested by our Client to conduct legal due diligence of our Client who was an Oil Company and Gas Company, who wishes to farm out an undivided portion of its Participant Interest under a certain Production Sharing Contract (PSC) or Technical Assistance Agreement to a potential prospective Oil / Gas Investor.

The most interesting part, of our task before we could make the report of our Legal Due Diligence, is that we have to conduct certain legal due diligence on the legal corporate documents, any and all of the necessary required licenses, permits as well as the necessary oil and gas contracts our Client has signed by with the government of Indonesia (GOI) being represented by Pertamina , and know BP MIGAS.

As a standard practices we also have to check any of the financing or credit agreements/loan agreements including its collaterals it may have entered into so that the potential Investor will be fully aware of the condition of our Client who wishes to request to participate in the development of the Oil and Gas Operations in Indonesia.

We as an Independent Lawyer is also requested to check any third party contracts which our Client is engaged in an agreement or contracts during the period when such Legal Due Dilgence is conducted.

We also will check whether there any legal proceedings either arbitration, litigation or any other legal proceedings that has a material impact on such transactions.

Well those are among others the tasks which we were requested to conduct, when our Client as an oil and gas investor, wishes to farm our portions or all of its undivided Participant Interests under a certain PSC or TAC to a certain potential prospective oil/gas investor, where we also are required frequently requested to provide them with a Legal Opinion.

Agung Supomo Suleiman Senior Partner

Law Firm Suleiman Agung & Co Blog:

http://www.sacolaw.blogspot.com

email : agungsacolaw@telkom.net

Mobile Phone : 0816830647

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