POD, WP&B, FQR, and AFE CONCEPTS based on PRODUCTION SHARING CONTRACT ASPECTS
POD,
WP&B, FQR, and AFE CONCEPTS based on
PRODUCTION
SHARING CONTRACT ASPECTS
Yogyakarta, 12 – 14 August 2015
INTRODUCTION
Many PSC’
have recruited employees with various education backgrounds and work experiences. As an Oil & Gas company in Indonesia,
these employees need to know about the Business Challenge in Oil & Gas
Industry they are working for.
To
accomplish this task they need knowledge & concepts on the
application of How the Production Sharing
Contract (PSC) works, how the oil and gas industry is structured in Indonesia,
and How to construct POD, WP&B, FQR, and AFE as a budget controlling
system.
The
production-sharing contract, over the last 40 years, the probably most dominant
form of granting access to oil & gas exploration and development to
international petroleum companies in developing countries. Its distinct
character that production is shared rather than tax/royalties being paid and
that the foreign/national investor (now "contractor") is in a
contractual relationship with the Government which holds the original mining
title. The Government may exercise quite lose control or much more close
control over management. Functionally and financially, the PSC models need
different in terms of management control, depend on the specific management
system established and on the way it is implemented.
The
Government may exercise quite lose control or much more close control over
management. Functionally and financially, the PSC models need different in
terms of management control, depend on the specific management system
established and on the way it is implemented.
This 3 days
training program provides a concise and comprehensive learning modules on the
application technologies in upstream oil industry
and all Production Sharing Contract aspects
in Indonesia. The
modules are specially design for general participations, even for who
do not possess technical backgrounds. The modules are wrapped in such
a way to ensure easy understanding on the common application of economic
aspects and risks in Production Sharing Contract. It includes interactive
sessions to explain and discuss the impacts of the industry and future
industrial demands.
On completion of this course
participants will be able to:
·
Describe what a PSC Agreement is and how it is used
·
Describe and identify the essential elements of a PSC Agreement
·
Engage with key governments, National Oil Companies, Multinational
Oil Companies, and Service Companies to facilitate robust contractual and business
models.
·
Develop skills and competencies required to calculate Cost
Recovery & Tax regarding PP No. 79/2010
·
Describe the process of forming a POD, WP&B, FQR, AFE, and PIS
·
Identify and describe the requirements to develop a suitable POD,
WP&B, FQR, and AFE
·
Describe and apply the elements required to successfully POD,
WP&B, FQR, AFE, and PIS.
COURSE OVERVIEW
Day 1:
1.
Regulation Aspects in Indonesia Oil & Gas Industry
·
Legal Aspect in Production Sharing
Contract.
·
Roles & Rules Oil & Gas
business under The Law of Oil & Gas Industry No. 22/2001
·
Authority Distribution among Ditjen
Migas, SKK MIGAS, KKKS, and PERTAMINA
2.
Petroleum Fiscal Classification
·
Petroleum Fiscal Arrangement
·
History of Production Sharing Contract
in Indonesia
·
Overview of Terms & Conditions in
Production Sharing Contracts
3.
How the PSC works and how the oil and gas industry is structured in
Indonesia
·
Section Scope and Definition
·
Production Sharing Contract Agreement
in brief
·
Termination in Production Sharing
Contract.
Day 2:
4.
Financial Components Relating to Cost Control & Reporting Management
·
Production Sharing Contract Accounting
System
·
Risk and its relationship to cash flow
·
Capital & Non-Capital costs
application in WP&B
·
First Tranche Petroleum, costs, cost
recovery, and domestic market obligations
·
PP No. 79/2010 regarding cost recovery
& Tax
·
Case Study: project
cash flow model and building a trace diagram
·
Over/ Under Lifting
·
Impact of Cost Recovery on Production
Sharing Split to Contractor.
·
Gain win-win increased revenue on the political and more
importantly the economic level for Company and Government of Indonesia
5.
Cost Control Management in Exploration Stage of PSC
·
Control Management System
·
Firm Commitment
6.
Cost Control Management in Development Stage of PSC
·
Describe and implement methods for
evaluating a Plan of Development (POD)
·
Submitting POD documents to SKK Migas.
Day 3:
7.
Cost Control Management in Exploration and/ or Development Stage of PSC
·
Describe and identify the meaning of a
Work Program & Budget (WP&B)
·
Describe and identify the meaning of a Financial
Quarterly Report (FQR)
·
Describe and identify the meaning of an
Authorization
For Expenditure (AFE)
·
Describe and identify the meaning of a Place Into
Service (PIS)
·
Describe, procedure, and process of
forming a WP&B, FQR, AFE, and PIS
·
PTK No. 007 SKK Migas regarding
WP&B
·
WP&B Revisions and Procedures
·
AFE Revisions and Procedures
·
Submitting WP&B, FQR, AFE, and PIS
documents to SKK Migas.
WHO SHOULD ATTEND
This course is ideal for Managers,
Supervisors, Engineers, Geologist, Economist, Finance, Legal, Asset and Project
Manager who want to learn from conventional to advance Production Sharing
Contract Agreement, processes and procedures of POD, WP&B, and
AFE.
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