AUDIT AND REPORTS IN UPSTREAM PETROLEUM OPERATION

AUDIT AND REPORTS IN UPSTREAM PETROLEUM OPERATION
(Focus on SKMIGAS & GOI audits and FQR)
July, 3rd -5th 2013, Phoenix Hotel - Yogyakarta



Oil and Gas, without sounding as exaggeration, exerts great economic and political influence worldwide. The environment in which the oil and gas industry functions, throws up technological, financial and other challenges almost every day. To be successful, the enterprises in the oil and gas companies need to be really responsive to not only the existing challenges but also be able to pre-empt them.

Audit is a service which can immensely help the industry overcome the challenges and increase value. Keeping this in mind, the auditors in the said industry have to understand the basic operations undertaken in the industry and also audit aspects relating to the same. Petroleum Industry in Indonesia are managed by the Government of the Republic of Indonesia, under Law No. 22 / 2001.  SKMIGAS is the only institution directly responsible to manage the upstream petroleum activities, to represent the Government of Indonesia. Therefore all terms of agreements, contracts and regulations are controlled by SKMIGAS whether it is technically or financially matter.  PSC Contractors are responsible for the implementation. SKMIGAS together with other GOI institution such as BPKP and Tax Office, conduct audit of contractors’ books on a yearly basis. In addition the BPK is also conducts an audit the books of certain contactors. If there is a partnership in the operation, such contractor will also be audited by its partners.

One of the tools to conduct control of contractors’ operation, SKMIGAS requests the contractors to submit reports on a regular basis.

This course will focus on two subjects, i.e.
  • How to prepare being an auditee of SKMIGAS and GOI audits as well as being  an auditor in the joint operation
  • Financial Quarterly Report

Course Objective

After attending this course, the participant is expected to be able to:
  • Understand the audit process in general, how to response the audit findings and make sure that only substantial findings may be accepted
  • Understand how to prepare audit program and its implementation of joint venture audit
  • To prepare, to read  and to analyze  Financial Quarterly Report 

Who Should Attend?

  • Accountants
  • Auditors
  • Planning, Budgeting & Business Analysts/ Supervisors/ Managers
  • Any professionals who wish to get understanding and knowledge of the audit of petroleum upstream operation and Financial Quarterly Report.

Course Content

I.          SKMIGAS and GOI Audits
•          Cost Recovery calculation
•          Expenditure authorization
•          Regulations compliance
•          Prior years adjustment of audit findings

II.        Joint Venture Audit
•          Audit program
•          Expenditure Audits in the Petroleum Industry

III.       Reporting System - General
•          Procedure No.1
•          Procedure No.2
•          Procedure No.3
•          Procedure No.4
•          Procedure No.5

IV.       Preparation of Financial Reports
•          Report-1, Financial Status Report
•          Report-2, Key Item Analysis
•          Report-2A, Inventory and Reserves Analysis
•          Report-3, Expenditure Summary
•          Report-4, Exploration and Development Expenditures Summary
•          Report-8, Production Expense Analysis
•          Report-11, Administrative Expense Analysis
•          Report-14, Fixed Asset Status and Depreciation Expense Report
•          Report-15, Project Status Report
•          Report-16, Lifting Analysis


V.         General Discussion of Current Issues

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