The PSC of Oil & Gas Industry

The PSC of Oil & Gas Industry

Grand Serela Hotel, Bandung | October 28-30, 2009 | Rp.5.750.000,-

COURSE OBJECTIVE

Contractual systems consist of concession contract, production contractual contracts and other contractual forms. Mostly, The PSC (Production Sharing Contract) is applied for Indonesia Oil and Gas industry. In PSC, management is under the government. The contractors should submit WP&B, POD and AFE to be approved by BP Migas.

Petroleum is common property resources, therefore its management should give greatest benefit for the people. The Key issues of contract are the ownership of hydrocarbons and state sovereignty of natural resources, goals of petroleum policy, state participation, petroleum authorities, the role of national companies, exploration and production regulations. Petroleum business is just like other business which is aimed to make profit. Profit is a function of production, price, costs and government take (tax and non tax) and minimum return. To maintain production, any business needs to maintain stock, Stock in Petroleum Business is proven reserves. Petroleum business is a risky business.

To understand Petroleum Industry needs knowledge of petroleum proven reserve and production, price, costs, government take, contractor profit, minimum return and risks of Petroleum Business.

COURSE CONTENT

1. Dynamics of Petroleum Business


2. Methods to Measure Profit Indicators


3. Cost, Cost Recovery and Recoverable Cost


4. Government Take from Tax and non Tax


5. Net Contractor Share and Contractor Cash Flow


6. Important Issues on Law, Fiscal and Frame work of Upstream Petroleum Contracts


7. General Assessment on Petroleum Exploitation and Production Concession


8. Production Sharing Contract


9. Investment Credit and Domestic Market Obligation


10. First Tranche Petroleum

PARTICIPANTS

• Financial Analyst


• Project Engineering and Economic Team


• Development Planning Team


• Geophysicist and Geologist


• Reservoir Engineers, Production Engineers


• Anybody who wish to know The PSC and Oil and Gas industry

Instructor
Prof. DR. Ir. Widjajono Partowidagdo, M.Sc

Prof. DR. Ir. Widjajono Partowidagdo, M.Sc is a Professor in Petroleum Economics and Field Management at the Faculty of Mining and Petroleum Engineering, Institut Teknologi Bandung and a member of P3 Migas Team (Supervision for Increased Petroleum Production). He was the Head of the Research Group in Drilling and Production Engineering and Management of Oil and Gas at the Faculty of Earth Sciences and Mineral Technology, ITB from 2005-2007, Head of Graduate Program in Development Studies ITB from 1993-2004, Vice Dean for Academic Affairs, Faculty of Mining Technology and Senate Member of ITB from 1994-1997 and Coordinator for Research in Sustainable Development at the Inter-University Center for Economics, University of Indonesia from 1989-1992.

He received his Bachelor in Petroleum Engineering from ITB, MSc in Petroleum Engineering, MSc in Operations Research, MA in Economics and PhD with a dissertation on "An Oil and Gas Supply and Economics Model for Indonesia" from the University of Southern California, Los Angeles, USA. He has written 2 books: Management and Economy of Oil and Gas, 2002 and Understanding Development and Policy Analysis, 2004.

Schedule
October 28-30, 2009
3 days

Venue
Grand Serela Hotel, Bandung

Tuition Fee
Rp.5.750.000,- per participant, excluding accommodation & tax.

PSC Accounting

PSC Accounting

Ibis Slipi Hotel, Jakarta | October 19-21, 2009 | Rp. 5.250.000,-

 

INTRODUCTION

The most important event in the operations of an oil and gas company is the discovery of reserves. Consequently, estimated reserves quantities are relied upon heavily in oil and gas accounting. For example, reserve quantities are used in computing depreciation, depletion, and amortization (DD&A) using the units-of-production method and for purposes of complying with disclosure requirements.

A deep understanding of expenditure that will be recoverable through cost recovery mechanism is a mandatory to avoid unnecessary losses in upstream operations. This course will explain the elements of costs that classified as recoverable costs, how to calculate and allocate amongst the products. Depreciation methods, capital and non-capital expenditures, tangible and intangible cost are example of items that will be elaborated in this course. The discussion will also cover First Tranche Petroleum (FTP), Before-tax contractor share, Cost Recovery, Profit Oil, Income Tax, Net Cash Flow, State Take, Domestic Market Obligation (DMO).

COURSE OBJECTIVES

After attending this course, the participants are expected to be able to:

• Understand the concept and practical knowledge of the Cost Recovery and Equity Split Mechanism between State and Oil and Gas Companies, or Economics of Production Sharing Contract.


• Understand the process of calculation and allocation of operating costs.


• Understand how to calculate the share of production and how the incremental costs will affect the net contractor share.


• Understand the Basic Philosophy of the Integrated Financial Aspect


• Understand of the Fiscal Aspect of Oil & Gas Law Foundation, Fiscal Aspect of Oil & Gas Law Foundation, Fundamentals of Exploration Agreement, Taxation and its Implications on the Field Development Economic Calculation

DISCUSSION AREAS

• Investment Consideration of Petroleum Operation


• Principals in Oil & Gas Exploration Agreement


• Financial Aspect of Oil & Gas Law Foundation and Land Acquisition Process in Indonesia


• Oil Mining Taxation


• Production Sharing Contract


• Financial Economic Case

COURSE SUBJECTS

1. Petroleum Operation Investment Consideration

• Economic Consideration of Exploration Aspect


• Field Development


• Field Operation


• Selling Price Issue


• Income Sharing Issue

2. Principals in Oil & Natural Gas Exploration Agreement

• Land Acquisition


• Control Mechanism of Host Country Operation


• Mineral Right Ownership

3. Financial Aspect of Oil & Gas Law Foundation and Land Acquisition Process in Indonesia

4. Production Sharing Contracts

• Basic Principals


• Management Control


• Financial Aspect


• Accounting Procedure

5. Development of Production Sharing Contract Generation

• Concession Agreement


• Work agreement Contract


• Production Sharing Contract


• Technical Assistance Contract


• Contract Production Sharing


• Joint Operating Agreement

6. Financial and Economic Aspects of Production Sharing Contracts

• First Tranche Petroleum (FTP)


• Investment Credit


• Domestic Market Obligation (DMO)


• Income sharing


• Operation Costs

7. Comparison of Accounting Methods

• Successful Effort


• Full Costing


• Production Sharing Contract

8. Incentive Package and its Implication

9. Oil & Gas Mining Taxation

10. Case Study

WHO SHOULD ATTEND

Accountant, Auditors, Lawyer, Planning and Budgeting Staffs, Financial Analysts and Planner, Engineering Managers, Exploration Managers

 

Instructor
DR. Wiwiek M. Daryanto, SE-Ak, MM, CMA

DR. Wiwiek M. Daryanto, SE, AK, MM, CMA is an expert in accounting and finance. She earned a degree in accounting from the University of Gadjah Mada, a Master of Management (MM) from the University of the Philippines (UP) and a Doctoral degree from the Institut Pertanian Bogor (IPB). She is also a member of Certified Management Accountant of the Institute of Certified Management Accountant (ICMA), Australia.

Schedule
October 19-21, 2009
3 days

Venue
Ibis Slipi Hotel, Jakarta

Tuition Fee
Rp. 5.250.000,- per participant, excluding accommodation & tax.