FINANCIAL ASPECTS AND BUDGETING OF INDONESIAN PSC

FINANCIAL ASPECTS AND BUDGETING OF INDONESIAN PSC 
September 9th - 11th 2015 – Bandung




Course Objectives

·         To explain and describe financial aspects and budgeting under Indonesian PSC using very simple “finance and accounting language” so can be understood by staffs without any accounting and finance knowledge.
·         To explain comprehensively what is cost recovery in relation to the company’s profit
·         To learn how to read Annual Work Program and Budget

This course is designed for those interested in learning about financial aspects and budgeting under Indonesian PSC as an additional working knowledge to support his or her assignments. Concepts and theory are presented in such a way that will invite participants to be actively involved in the discussions. The presentation of related cases and discussion of current issues are intended to help participants in turning the theory into practical knowledge.


Course Content

1.    Introduction
·         What is Financial Accounting
·         What is Financial Management
·         Financial Aspects of PSC

2.    Overview of Relevant Section of the Contracts
·          Work Program and Budget
·         Rights and Obligations of the Parties
·         Recovery of Operating Costs and Handling of Production
·         Valuation of Crude Oil and Natural Gas
·         Payments
·         Title of Equipments
·         Books and Accounts and Audits
·         Exhibit C- Accounting Procedures

3.    Operating Costs
·         Definition
·         Non Capital Costs
·         Capital Costs

4.    Depletion, Depreciation and Amortization (DD&A)
·         Definition
·         Asset Valuation and Depreciable Base
·         Depreciation Methods

5.    Budgeting
·         Definition and Role of Budgets
·         Budget Preparation
·         Annual Work Program and Budget
·         Authorization For Expenditure (AFE)


6.    General Discussion of Current Issues


Training Method

  • Presentations, active participation through group discussions
  • Highly interactive lecture
  • Experiential learning

Target Participants


Professionals in the Company who want to get an additional working knowledge of Financial Aspects and Budgeting of Indonesian PSC to enhance their cost and budget consciousness in performing their tasks.

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