Saturday, November 08, 2008

Snapshots on Oil and Gas Rules

  • Based on the considerations of the Law No. 22 Year 2001, the National Development has to be directed to achieve the peoples prosperity by conducting the reformation of all fields of the nation and state based on the Pancasila and the Indonesian Constitution 1945.
  • For Foreigners readers, I would like to inform that Pancasila is the five principles of the Indonesian people and State which is being used as the motto to unite the various ethnics and background culture found in Indonesia.
  • Whereas the Indonesian Constitution 1945, was the Constitution which was established and agreed by the founding fathers of this Nation, during the period when Indonesia was formed after its Independent day.
  • The oil and gas is the strategic nature resources which are non-renewable which is controlled by the State and is the vital commodity which controls the mainstream live of the majority people and has an important role in the national economy so that the management has to maximize in contributing the welfare and prosperity of the people.
  • the oil and gas activities has an important role in giving the real value added to the growth and continuity of of the national economic.
  • The Law No.44 Prp.Year 1960 concerning Oil and Gas, the Laws No. 15 Year 1962 concerning the stipulation of the Government Regulation of Replacing Law No.2 Year 1962 concerning the Obligation of the Oil Companies to fulfil the domestic needs and Law No. 8 Year 1971 concerning the State Oil and Gas Enterprise is no longer in accordance with the development of the oil and gas enterprise
  • Whereas, by still considering the national as well as international development the changes of the laws regulations concerning the oil and gas mining which can establish oil and gas enterprise which is self standing, strong, transparent, having the competitive power, efficient, and having the environmental vision, and boost the potential development and national role.
  • Based on the above considerations and in order to give the legal base for the renewal steps and redress the oil and gas performances the Law No. 22 Year 2001 had been formed.
  • After having implemented since the Year 2001, we understand from our sources there is an amendment being proposed and discussed between the House Representative of the People ( DPR ) and the oil and gas Community.

Agung Supomo Suleiman

Partner Law Firm Suleiman Agung & Co

Law Firm’s Blog http://www.sacolaw.blogspot.com

Email : agungsacolaw@telkom.net

Mobile Phone : 0816830647

Exiting and Thrilling Experiences

  • Well I feel like writing in this Blog of mine.
  • I know its already late at night time shows 1.00 night.
  • Finally I realize that I am a business lawyer and specializing in Oil and Gas, General Mining, Coal Mining, Hotel activities, Construction and financing arrangements.
  • Well in this Oil and Gas, it started when I was working 5 Years as In house Lawyer in Huffco Indonesia (Virginia Company) who has its oil and gas operations under a Production Sharing Contract with Pertamina.
  • These Oil and Gas operations produced oil and gas, where the gas is being delivered to the processing and refinery plant in Bontang being purified and processed as LNG ( Liquefied Natural Gas) which shall be delivered to its customers in Japan. Wauw really exiting isn't ?
  • I was assigned as the in house Lawyer who was reporting directly to the Senior Vice President Exploration & Production, who are mostly engineers.
  • It was really an exiting experience because I was responsible for handling and reviewing the Exploration and Production Contracts, and is also responsible to answer any question from the Management relating to the interpretation of the Production Sharing Contract ( PSC).
  • Some of the questions relating to this PSC are among others what is meant by commercial production, when is the Oil and Gas Company obligated to surrender part of its Contract Area and other significant PSC issues.
  • On the Exploration and Production side, I was responsible to draft and review the E & P Contracts from the legal aspects. Such Agreements covers operational contracts among others the Drilling Contracts, Well Testing, Cementing Agreements, Helicopter Charter Agreements,Vessel Charter Agreements, EPIC (Engineering,Procurements, Installation, Commissioning Agreements) and other Exploration and Production Agreements.
  • It was really exiting and interesting tasks working as In House Legal Counsel in an Oil and Gas Company.
  • The most interesting part of the tasks, which I really enjoyed, is when you are assigned to go to the Site Location, in Badak or Bontang in East Kalimantan of Indonesia.
  • Why is so exiting ?
  • The existing part is because you will directly go to the terrain and remote places, where the access roads are not asphalts but are brown land and dusty, where you can see the pipelines which transported the oil and gas from the production wells in the commercial producing wells, and the oil and gas station gathering, the rigs, the wells, the plants and other oil and gas facilities;
  • You will also see the green forests trees, all around you which makes you feel , you are trapped in a beautifully wild nature.
  • The fun part is also when you fly with the Helicopter Bell 412, and sea the view of the Site Location from the chopper.
  • It is really exciting and thrilling experience.
  • On the Site Location you usually travel with jeeps which is really exiting.
  • Well, such view and adventure in the Fields are really important for you so that you can capture the whole and comprehensive picture, as a contribution when you are drafting the oil and gas contracts.
  • Remember as a Lawyer, part of your job are incorporating the rights and obligation of the parties which is the Oil and Gas Companies and the Supporting Contractors in a contractual agreements which is actually the reflection of the meeting of minds and understandings between the parties.
  • The readers and the stack holders of such Contracts which you are drafting and preparing consists of various disciplines and background which are managements, shareholders, engineers, technical and finance people.
  • So the art of being a Lawyer is to having writing skills to establish communications and understandings between the various stockholders to achieve their common goals and interests.

Agung Supomo Suleiman

Partner Law Firm Suleiman Agung & Co

Law Firm’s Blog http://www.sacolaw.blogspot.com

Email : agungsacolaw@telkom.net

Mobile Phone : 0816830647

Drilling Rig

Drilling Rig
oil gas

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