Being experienced as Business Lawyer in the Oil Ventures in Indonesia is really quite an exiting experience. The difference being experienced as lawyer for Indonesian Local Oil Companies who is surviving and struggling to survive and being lawyer serving legal services for Big Oil Foreign Companies is relating to the funding capability in their Oil Business Venture.
- Even though we are in Indonesia, Indonesian Oil Companies who are operating in Indonesia starting from Exploration can be counted. Usually Indonesian Oil Companies who started venturing in the Oil Business in Indonesia started by acquiring ex-Oil Blogs, which had been sold by the Foreign Oil Companies which are already in the Exploitation and Producing stage. By doing this the Indonesian Oil Companies can manage to show to the bankers that they have cash-in from the selling of the Crude oil for a certain period of time .
There is also an Indonesian Oil Company who started in the Oil Ventures in Indonesia, after they had experience running a Drilling Company, where they have already owned certain numbers of Rigs as well as cash in revenues which can be used as collateral for the repayment of their loans to their Banks. This Oil Company was also formerly at the early stage Managed and Chaired by an Indonesian Expert Oil Top Leader namely John S Karamoy who had experienced in running big Foreign Oil Company such as Stanvac and Vico Indonesia, who is now the founder of JME which my SACO Law Firm is presently in association with.
- I am lucky enough to be experienced as an Indonesian Oil Lawyer who had assisted and were also being involved in reviewing the Sales Purchase Contracts of this ex Foreign Oil Blog acquired by said Indonesia Oil Company, when I founded and set up my Suleiman Agung & CO ( SACO Law Firm).
- In the oil business practices, if the Oil are still in below the ground however located already in the proven and exploitation stage, 1 (one) barrel is usually valued to be USD1 dollar. If such oil is still located in the exploration stage however is located near by the structure of the exploitation stage shall be valued 30 cents United States Dollars.
For the purpose of calculating the expected oil reserved, a study is usually conducted by several expertise consultant to predict the volume of Crude Oil Reserves or Deposits in a certain Oil Contract Area. This is usually detected by the Oil Reservoir Engineers and Geologist team. Accordingly, the Investors in the Oil Business have to be supported by these expertise engineers and chaired and Lead by the Expert Leader Management of such Oil Company.
- Such team have to be solid and having real experience in their fields combined with the operation team members as well as the Finance and Legal Expertise to team up such Solid Working Team. One of the significant element is that somebody has to be recognized by the Bankers or Financial Institutions who financed such Oil Ventures which is usually performed through the Holding Companies, but the Oil Company has to be headed by a Certain Expert Management Leader who is already recognized by said Bankers through his track records of his capability and ability to manage and make the Oil Business Operations succeed in generating Cash-In, through sustainable production and selling such Crude Oil to the Buyers in a commercial and bankable cash in for a certain period of time.
Jakarta 29 October 2011 - Agung S.Suleiman Partner of SACO LAW FIRM
in association with JME