13 – 15 Apr 2011 | Bandung

14 – 16 Sep 2011 | Manado

Course Overview

This course is designed to help participants to get a comprehensive understanding regarding cost recovery and other financial aspects of Indonesia PSC to ensure that the company expenditures will be calculated thoroughly and cost recovered properly. Detailed of Cost Recovery calculation and single item of expenditures that allowed to cost recovered will be discussed intensively   including how to avoid potentials of un-recovered cost items.

Illustrative examples that present and explain concepts to ensure that participants gain a deep understanding of the cost recovery and other financial aspects will be presented and discussed during the course. Emphasis is placed on understanding the nature of costs that are unique to an oil & gas company upstream operation under Indonesia PSC and how these costs behave under different conditions.

By attending this course, participants are expecting to be able to develop a model of cost recovery calculation that can be applied back in their own work place.

Who Should Attend?

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

Course Content

Overview of Relevant Sections of the Contract

• 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

Operating Costs

• Definition
• Non Capital Costs
• Capital Costs

Accounting Methods to be Used to Calculate Recovery of Operating Costs

• Depreciation
• Overhead Allocation
• Interest Recovery
• Gas Costs
• Inventory  Accounting
• Abandonment and Site Restoration

Other Regulations

• Government Regulation on Cost Recovery ( PP 79/2010)
• Minister Regulation ( Permen ESDM 22/2008)

General Discussion of Current Issues

Course Leader

Sulhan Askandar, SE