18 – 21 Apr 2011 | Bandung

13 – 16 Sep 2011 | Bandung

Overview

Based upon the Oil & Gas regulation stipulated under law No. 8 of 1971, PERTAMINA has been authorized to manage the oil & gas exploration business, including develop a Production Sharing Contract  (PSC) with foreign investors.  In 2001, the previous law No. 8 of 1971 has been replaced by law No. 22 of 2001 which provide exclusively right of exploration to the government and subsequently appointed an executed agency of BPMIGAS.

Therefore, all investors and operators who have cooperation agreement with government (namely Cooperation  Contract for Contractors or KKKS which comprise of PSC/JOA/JOB) is required to perform all activities under the management of BPMIGAS. The cooperation mechanism stated in the PSC govern the following but not limited to activities ort conditions: petroleum operation, contract term, exploration period, commitment, end of contract, bonus, Work Program & Budget, operating cost, cost recovery, and just to name a few.

In the PSC, it is stated that “Petroleum Operation means all exploitation, development, extraction, production, transportation, marketing, abandonment and site restoration operations…” The implementation of Petroleum Operation have to “consistent with modern petroleum industry practices”. Thus, the Contractor is required to continuously enhance skills, technology, and competencies in petroleum operation to improve operation efficiency in order to bring down the cost of production.

As the management, BP MIGAS has a control function on: pre, current and post audit on all activities of all contractors by deploying several tools, such as Plan of Development (POD), Work Program & Budget (WP&B), Authorization for Expenditure (AFE) and Reporting System. Those contractors need to understand all rules and guidelines set forth regarding to the preparation of POD, WP&B, AFE and Reporting Systems in order to be the same page with BPMIGAS to achieve better coordination, control, interaction and communication within the PSC frameworks.

Program Topics

Day I 

• Introduction to Oil & Gas Operation
• Geology and Petroleum System
• Reservation of Hydrocarbon, Drilling and Field Development
• Estimation of production, production facilities and production time management

Day  II

• Law and government’s regulation on the oil & gas industry (MIGAS) as well as changes in natural resources (MIGAS)  policies.
• Investment in MIGAS
• Downstream and Upstream activities
• PSC (Part I) - Obligation, Commitment, Relinquishment, Bonus, Penalty, and others.
• PSC (Part II) – Petroleum Operation, Section VI Exhibit ”C”
• WP&B / POD / AFE as mechanism of Petroleum Operation and controlling tools used by BPMIGAS as KKKS management.

Day III

• The basic philosophy and understanding of PSC Budgeting
• Financial Aspects of  AFE, WP&B and POD
• AFE Budget schedules 18 – 26 and related reporting
• WP&B schedules 1 – 17 and FQR
• FQR report 1 - report 16

Day IV

• PSC Cost Recovery, Non-capital / Capital
• Exploration, Development, Production, FTP, DMO Depreciation, Production / Lifting
• Entitlement, Government Tax, Cash Settlement, Economical Aspect, Cashflow analysis, Investment credit, uncovered cost.
• Field Development Economic, case studies

Course Leaders

E.R. Suwatidjah | Iwan Dermawan Titus | Siti Sunari