WP & B, POD, AFE COURSE

INTRODUCTION

The PSC originated in the 1960s in Indonesia. It has now spread around the world. This model reflects a much cleaner separation between state (politics, bureaucracy) and the investor.

The production-sharing contract, over the last 40 years, the probably most dominant form of granting access to oil & gas exploration and development to international petroleum companies in developing countries. Its distinct character is that production is shared rather than tax/royalties being paid and that the foreign/national investor (now ""contractor") is in a contractual relationship with the Government which holds the original mining title.

The Government may exercise quite lose control or much more close control over management. Functionally and financially, the PSC models need different in terms of management control, depend on the specific management system established and on the way it is implemented.

Contracts can be unstable, and one or both signatories may want to renegotiate. As oil exploration and development projects are characterized by large capital investments, long lead times, incomplete information, and (in most cases) significant differences in each counterparty’s ability to bear the risks involved in an oil & gas industry. The current condition is confusing development on limitations of cost recovery.

Technically, contractors don’t make profits out of cost recovery. Cost recovery will be converted in barrels and it can be a ”bad barrels”, as opposed to a “good barrels”, depends on the last crude price when the investment can be recovered.

The value of these bad barrels is even worse if cost recovery is charged over several years of PSC depreciation (for capital expenditures), widening the time gap between cash outflow from the pay-out and inflow from cost recovery barrels and tax deductibility. This alone is a strong enough reason why a PSC operator should always strive to be as efficient as possible.

This 4 days comprehensive course is designed to give all of PSC aspects: legal, financial, politics and bureaucracy in the oil & gas industry. It includes interactive sessions to explain and discuss the impacts of the industry and future industrial demands.

COURSE OVERVIEW

• Legal Aspect in Production Sharing Contract
• Interdepartmental Relationship
• History of Production Sharing Contract
• Production Sharing Contract Agreement in brief
• Overview of project economics in Indonesian PSC regime
• Defining costs, cost recovery, and domestic market obligations under PSC Agreement
• Role & rules of Project Evaluation
• Basic of economic/financial evaluation techniques in feasibility study
• Commitment in Exploration Stage of PSC
• Plan of Development in Development Stage of PSC
• Work Program & Budget
• Authorization of Expenditures
• Place into Service (PIS)
• Closed out AFE
• PP No. 79/2010 regarding cost recovery
• Tender process & procedure.

WHO SHOULD ATTEND

This course is ideal for Managers, Supervisors, Engineers, Geologist, Economist, Finance, Legal, Secretaries, Asset and Project Manager who want to learn from conventional to advance Production Sharing Contract Agreement, processes and procedures of POD, WP&B, and AFE.  

KEY BENEFIT

• Introduce Managers, Potential Managers, Supervisors and Planners to the skills and competencies required to execute & manage work programs in their organizations.
• Develop the skills and competencies required to plan and manage PSC Agreement.
• Improve the competencies required for submitting POD, WP&B, and AFE documents to BPMIGAS.
• Improve the skills to organize personal work priorities and own personal development.
• Improve the communication skills in their organizations, associated with POD, WP&B, and AFE documents.
• Develop skills and competencies required to administer POD, WP&B, and AFE.
• Connect with strategic stakeholders to cement business relationships along the oil& gas industry to ensure effective collaboration
• Engage with key governments, National Oil Companies, Multinational Oil Companies, and Service Companies to facilitate robust contractual and business models
• Create effective dialogue to combat the current economic volatility’s impact on company financial and fiscal models for oil & gas projects
• Gain win-win increased revenue for company on the political and more importantly the economic level
• Designing a fiscal system whereby the government can maximize revenue from its natural resources whilst providing sufficient incentives to foreign investors
• Negotiating tough contracts and incentives to reduce costs and improve profit

On completion of this course participants will be able to:

• Describe what a PSC Agreement is and how it is used
• Describe and identify the essential elements of a PSC Agreement
• Identify what about PSC Agreement
• Participate in and facilitate work teams
• Describe the process of forming a POD, WP&B, and AFE
• Describe and identify the meaning of a POD, WP&B, and AFE
• Describe and implement methods for evaluating a Plan of Development
• Describe the roles of the components involved in a POD, WP&B, and AFE
• Identify and describe the requirements to develop a suitable POD, WP&B, and AFE
• Describe and implement the procedures associated with POD submissions
• Describe and implement the procedures associated with WP&B submissions
• Describe and implement the procedures associated with AFE submissions
• Describe and implement the processes to be used in submitting a POD
• Describe and implement the processes to be used in submitting a WP&B
• Describe and implement the processes to be used in submitting a AFE
• Describe and apply the elements required to successfully POD, WP&B, and AFE
• Report on the POD, WP&B, and AFE

INSTRUCTOR

Ir. Kuswo Wahyono, MM and Team

PRICE

Please call us