Training Psc Accounting

Training Concept And Practical Knowledge Of Psc

Training The Process Of Calculation And Allocation Of Operating Costs

COURSE DESCRIPTION

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 OUTLINE

Petroleum Operation Investment Consideration
Economic Consideration of Exploration Aspect
Field Development
Field Operation
Selling Price Issue
Income Sharing Issue
Principals in Oil & Natural Gas Exploration Agreement
Land Acquisition
Control Mechanism of Host Country Operation
Mineral Right Ownership
Financial Aspect of Oil & Gas Law Foundation and Land Acquisition Process in Indonesi
Production Sharing Contracts
Basic Principals
Management Control
Financial Aspect
Accounting Procedure
Development of Production Sharing Contract Generation
Concession Agreement
Work agreement Contract
Production Sharing Contract
Technical Assistance Contract
Contract Production Sharing
Joint Operating Agreement
Financial and Economic Aspects of Production Sharing Contracts
First Tranche Petroleum (FTP)
Investment Credit
Domestic Market Obligation (DMO)
Income sharing
Operation Costs
Comparison of Accounting Methods
Successful Effort
Full Costing
Production Sharing Contract
Incentive Package and its Implication
Oil & Gas Mining Taxation
Case Study

PARTICIPANTS TRAINING

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