Managing Cashflow

16 – 18 Feb 2011 | Yogyakarta

13 – 15 Jul 2011 | Yogyakarta

16 – 18 Nov 2011 | Bali

Course Overview

Managing Cash Flow for Oil and Gas Industry is very important in doing exploration and production or PSC operations specifically providing funds is absolutely born by the PSC itself. For foreigner PSC companies, Indonesian PSC management merely handled Cash Outflow to fund the E&P related to selling crude oil and gas, since settlement of crude oil and gas sales is done by the overseas banks, for the crude oil sold by the PSC company will be paid directly to Head Office abroad, while gas sales is mandatory handled as TPAA and DSAA divided by the appointed overseas banks. PSC Company shall be able to provide all exploration and production operating funds as stated in the PSC Agreement. The PSC will have to cash call the IJV partners to deliver funds as its participating interest in the operating agreement. Yet this practice does not avoid complexity in handling the cash flow even though the Cash Manager or Treasurer of the PSC does not need to deal with Financial Market institutions since he/she only do with Cash Calls mechanism to respective partners as IJV partnership to Head Quarter Office and or Indonesia PSC representative office in Jakarta as related to Unitized Block PSC. This practice may be different with local PSC companies, where the Treasurer or Cash Manager has to directly dealt with Financial Market Institutions in generating funds for its PSC block operations. To properly handled this job PSC needs the skilled-Treasurer or skilled-Cash Manager profession in helping the President & CEO of the company to keep always having a peaceful mind in managing the PSC operations when all suppliers, vendors, banker, lenders, employees and other stakeholders can be get-paid at due date of payments will be one of key performance of the company.

Course Objectives

The attendants: managers, superintendents, supervisors, treasury staff, accounting staff, and employees who do not have experienced in the treasurer or cash manager functions or responsibility, which can provide and support the participants’ professionalism in carrying out his/her daily jobs performance, which is actually measured and must be paid with cash. The awareness of Cash requirements proves in all aspects of the company operations in functions such as:

• ·Geology and Geophysics
• ·Exploration drilling
• ·Development drilling
• ·Completion drilling
• ·Work-over drilling
• ·Production operations
• ·Field Maintenance operations
• ·Supply Change Management: Procurement, Logistics, Warehouse, and Formalities
• ·Production facilities construction
• ·Production handling operations
• ·Gas transportation operations
• ·Human Resources operations
• ·Finance-Accounting operations
• ·Etc.

Course Benefits

By attending this course, participants will be geared through remarkable contributors to the success of the company. The participants upon complete this course will be able to be exposed to the treasury or cash management functions, which are duly expected by management to back up management decisions in the achievement of the company’s goals and objectives. The participants can pro-actively assist management to pay its financial liabilities and avoid cash flow problems and avoid claims from suppliers, vendors, services contractors and keep doing other responsibilities.

Course Content

Day one:

1. What is the Cash Management?
2. What is operational activities of the company?
3. How the PSC organization structure?
4. How is the PSC Agreement participating interest (IJV partners) established?
5. How is annual budget details?
6. How many block PSCs acquired by the company?
7. What is the Cash outflow?
8. What is run out of cash?
9. What is the cash budget?

10. Why the cash is always problems?

Day two:

Cash operational categories:

1. Geology and Geophysics
2. Exploration drilling
3. Development drilling
4. Completion drilling
5. Recompletion drilling
6. Facilities construction
7. Equipment purchases
8. Field maintenance operation
9. Production operations

10. General and administration

11. Etc.

Day three:

1. Cash Management Functions and Five Main Tasks of Cash Management
2. The 10 absolutely Must-Follow Cash Flow Rules: Never Run Out of Cash, Cash is King, Know the Cash Balance Right now, Do today’s Work today, Either You do the work or Have someone else Do It, Don’t Manage from the Bank Balance, Know What You Expect the Cash Balance to be six months from now, Cash Flow Problems Don’t “Just Happen”, You Absolutely, Positively Must Have Cash Flow Projection, Eliminate Your Cash Flow Worries So You are Free to Do What You Do Best – Take care of Customers and Make More Money.
3. Cash Flow formatting – Peaceful Mind Cash Management
4. Closing Summary 

Course Leader

Jamaluddin Siregar, BBA, Sth, Dipl Int’l Management, MBA

For more information please call

Indonesia Professional Development Center (IPDC)

Rasuna Office Park II,Unit QO-08

Komplek Apartemen Taman Rasuna, Jakarta 12960

Phone (62-21) 837 86465 / 837 86477 Fax: (62-21) 837 86478

E-mail; This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; This e-mail address is being protected from spambots. You need JavaScript enabled to view it