OVERVIEW

There are three approaches to controlling units in an enterprise, (1) Investment center, (2) profit center and (3) cost center. Upstream oil and gas activities operated based on PSC, consider a WKMigas as a business unit, with a profit center approach. Meanwhile, the units below will use a cost center approach.

Every department in an oil company must have a professional who controls costs. They record costs, analyze costs, evaluate costs, and provide input to department heads for cost effectiveness and efficiency.

Cost control in one department is an important and key to success in every department that is also a company.

Especially in PSC cost Recovery. Because the accuracy of cost control will determine how much the cost will be cost recovery, and will determine the production rights of the parties. However, cost control is also important for companies that use PSC Gross Split. The accuracy of cost recording and cost control is aimed at measuring efficiency and cost-effectiveness, which ultimately determines the company's profit.

The problem is, professionals are not equipped with an understanding of how the company's production, income and costs must be controlled. This course is designed for staff whose main job is to analyze as well as control costs for each activity unit. Which includes operations departments such as drilling department, maintenance, production department. Also support units, for example the department of human resources, legal, commercial and others.

OUTLINE

• Introduction: Oil and gas business: Global and National Current Issues, Oil and Gas in Indonesia for next generation
• The PSC Philosophy: Spirit under PSC Cost Recovery
• Production Sharing Contracts: PSC Cost Recovery and PSC Gross Split, Basic Principals. Management Control, Financial Aspect, Accounting Procedure
• WB&B and Financial Aspects of Production Sharing Contracts: Sensitivity of Price, Cost & Lifting, Pricing of oil and gas, Joint lifting and individual lift
• PSC Gross Split (GS): Conceptual of PSC GS: The Financial impact, Economics calculation simulation, financial operation aspect
• Discussion of WP&B budget schedule conceptual: Flows and logic of the budget schedule, Capturing cost recovery: WP&B and AFE business logic
• Closed out AFE, PIS & PPP, Depreciation: Business chain and the process & control

LEARNING METHOD

This training uses an interactive and hands-on approach, enabling participants to more easily grasp the material. Experienced instructor delivers the material systematically while participants involve in group discussions to deepen their understanding of the concepts.

Futhermore, the training includes simulations and case studies to help participants understand the practical application of concepts in the workplace.

With this approach, participants not only gain theoretical insight but also develop practical skills that they can apply to industry needs.

TARGET PARTICIPANTS

• New accountants and financial analysts in the oil and gas industry
• Financial risk analyst
• Budget Manager, Project Manager, Project Economic, Project Analysis, Budget Committee, Senior Operator.
• Oil and gas company staff, supervisors and managers who need to improve their understanding of budgeting process and how to establish a sound control system.
• Anyone who wish to gain a practical knowledge in budgeting process and control in order to understand the impact of financial issues on project selection and company performance.