The E&P Sharing Contracts and Agreement 2010 is taking place in the 6th until the 8th of July in the Grand Hyatt, Jakarta. Master Class A is taking place on the 6th of July with the topic “Structuring, Negotiating and Managing EPC Contracts in the Oil and Gas Industry”.

Tomorrow is a special day as the plenary session will take place. There’s an exciting segment where Dr Widjajono Partowidagdo of the National Energy Council (DEN) will discuss a new economic model he’s developed on the “Next Steps of Action” for operators and government to achieve the vision of the forum: Reformed, Energetic and Efficient E&P Industry in Asia Pacific through fresher, commercially viable E&P agreements.

High-level executives from oil and gas, oil financing and government sectors, supermajor IOCs, big NOCs, INOCs, SOCs including ConocoPhillips, ExxonMobil, Total, Hess, Samsung, Petronas, PTT, Pertamina, Medco, major law firms, and teams from Indonesian regulators in the ESDM and BPMIGAS attended the forum.

Click here (Masterclass A) and here (Masterclass B and C) to get a sneak peek on the Master Classes. Read the forum agenda here.

Allrite mate, time for sum intermezzo. Here's a homework for you CSR and social media experts. That fake BPGlobalPR twitter account just crowdsource a disparaging quizz a few minutes ago. What does BP stand for? he asked. Well, here's a snippet of the answers:

@bpglobalpr - Twitter Search via kwout

To give you an update, this is the list of speakers for the upcoming EPSCA 10:

1. Dr. Evita Legowo, Director General Oil and Gas, ESDM (tent.)
2. Trijana Kartoatmodjo, Deputy Operations, BPMIGAS
3. Benny Lubiantara, Fiscal Policy Analyst, OPEC (as Advisor)
4. Tariq Shafiq, Founding Executive, Iraq National Oil Company (also author of new Iraq oil law, Forum Chairman)
5. Ittiporn Boonpracong, Deputy Director-General, Department of Treaties and Legal Affairs (Malaysia-Thailand Joint Authority)
6. Faiz Shahab, Commissioner, PT Prime Petroservices
7. Joseph Amudi Tobing, Senior Legal Counsel, Hess Limited
8. Peter Godfrey, Vice President (Commercial), Arrow Energy International (on CBM development with PT Medco)

65. It is not known how many ad hoc funds there were, nor responses for one off payments, though there is reference to a number within documentation provided to the SFO by Innospec. These additional payments were variously referred to as the “Lead Defense”4 fund; “Lim WS account”5; “compensation fund”6; “extraordinary costs”7; “cumulative costs”8; “special funds”9; “promotion fund”10 or “exceptional promotional work”11; “special bonus”12; “cranes” 13 and the “Rachmat Sudibyo fund”.

 66. This fund was conceived and largely operated during a period predating the Indictment. In the first instance between 2000 until his departure in August 2002, a recipient of ad hoc bribes was Rachmat Sudibyo (“Sudibyo”). The “Rachmat Sudibyo Fund” was a corrupt vehicle to pay Sudibyo, the Indonesian Director General of Oil and Gas at the Ministry of Energy and Mineral Resources. He was in post until August 2002, whereupon he was appointed Chairman of BPMigas – the newly established oil and gas authority.

69. The Special Committee retained KPMG to examine all payments made to PTSI. KPMG found two large payments, one in 2001 ($265,000) and one on 8 January 2002 ($295,150) with invoices stating that they were: “For payment all Pertamina/Migas & Lemigas Personnel (sic) travel, hotel, daily expenses overseas during the year 2001 spent in promotion of OCTEL’s products, as earlier agreed.”.

76. Innospec’s agents therefore made corrupt payments to public officials at Pertamina which were not dependent upon or related to specific orders for TEL being made. Corrupt payments were made as general sweeteners “to clear the air”, through various mechanisms including the agents’ general commission, to “buy of [sic] some Pertamina people”, to maintain or increase market share.

77. Furthermore, Innospec’s agents also requested further funds in order to make corrupt payments to a rival agent – Wisnu – who had apparently been tasked with marketing Chinese-sourced TEL to Pertamina.

83. In 2003 and 2004, Innospec’s agent, Sebastian, targeted Suroso, who became the Refinery Director of Pertamina. It is believed that this position was second only to the President or CEO of Pertamina. In effect Suroso had authority, at least until 2005, to sign and agree purchase orders on behalf of Pertamina. Even after the creation of MIGAS, individual refineries and Pertamina more generally had certain autonomy to enter into contracts with particular suppliers.

I have been informed that Tariq Shafiq, who is involved in writing the new Iraqi Oil Law will be joining the event. Here's the tentative schedule for the speakers for Day Two:

Insights into the most efficient partnerships, alliances, contracts and agreements adapted to today’s economy are why this Power Forum is a must-attend event for all exploration companies from Southeast Asia, Central Asia, Russia, Africa, the Middle East, Caspian Sea and other oil-rich regions. The forum brings together the institutions, regulators, commercial and state actors, all who are directly involved in actual contracts and sharing agreements, to shed light into business-critical and contract-related issues around the various relationships, fiscal models and risk management must-haves in today’s petroleum exploration and development, including production sharing, joint operations, joint ventures, service contracts, international boundary disputes and oil & gas accounting.