POD, WP&B, FQR, and AFE CONCEPTS

based on PSC ASPECTS

SINGHASARI HOTEL, MALANG
Waktu

Kegiatan / Materi Kursus

Selasa, 09/09/2014

Hari Pertama.

08.00 - 08.30

Registrasi & Opening.

08.30 - 10.00

ASPEK REGULASI MIGAS DI INDONESIA

10.00 - 10.15

Rehat kopi.

10.15 - 11.30

ASPEK REGULASI MIGAS DI INDONESIA

11.30 - 12.30

Sholat & Makan siang

12.30 - 13.45

JENIS-JENIS KONTRAK KERJASAMA

13.45 - 15.00

PRINSIP-PRINSIP KONTRAK PRODUCTION SHARING

15.00 - 15.15

Rehat kopi.

15.15 - 16.00

PRINSIP-PRINSIP KONTRAK PRODUCTION SHARING

Rabu, 10/09/2014

Hari Kedua

08.00 - 10.00

ASPEK FINANSIAL

10.00 - 10.15

Rehat kopi.

10.15 - 11.30

ASPEK FINANSIAL

11.30 - 12.30

Sholat & Makan siang

12.30 - 13.45

FIRST COMMITMENT EXPLORATION STAGE

13.45 - 15.00

PLAN OF DEVELOPMENT (POD)

15.00 - 15.15

Rehat kopi.

15.15 - 16.00

PLAN OF DEVELOPMENT (POD)

Kamis, 11/09/2014

Hari Ketiga

08.00 - 10.00

WORK PROGRAM & BUDGET (WP&B)

10.00 - 10.15

Rehat kopi.

10.15 - 11.00

WORK PROGRAM & BUDGET (WP&B)

11.00 - 11.30

FINANCIAL QUARTERLY REPORT (FQR)

11.30 - 12.30

Sholat & Makan siang

12.30 - 13.45

AUTHORIZATION FOR EXPENDITURE (AFE)

13.45 - 14.30

PLACE INTO SERVISE (PIS)

14.30

Penyerahan Sertifikat dan Penutupan.

No

E-mail: kuswowy@yahoo.com / HP 081.1850.1310

WAKTU SHOLAT
Malang, 8 - 12 September 2014
Subuh
Dzuhur
Ashar
Maghrib
Isya
Ksw/ 20/08/2014 15:56

04:18
11:28
14:46
17:28
18:34

WIB
WIB
WIB
WIB
WIB

POD, WP&B, FQR, and AFE CONCEPTS based on

PRODUCTION SHARING CONTRACT ASPECTS
Singhasari Resort & Hotel, Batu, Malang, 9 11 September 2014
FACILITATOR: KUSWO WAHYONO

INTRODUCTION
Many PSC have recruited employees with various education backgrounds and work
experiences. As an Oil & Gas company in Indonesia, these employees need to know about
the Business Challenge in Oil & Gas Industry they are working for.
To accomplish this task they need knowledge & concepts on the application of How the
Production Sharing Contract (PSC) works, how the oil and gas industry is structured in
Indonesia, and How to construct POD, WP&B, FQR, and AFE as a budget controlling
system.
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 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
counterpartys ability to bear the risks involved in an oil & gas industry. The current
condition is confusing development on limitations of cost recovery.
Technically, contractors dont 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 3 days training program provides a concise and comprehensive learning modules on
the application technologies in upstream oil industry and all Production Sharing Contract
aspects in Indonesia. The modules are specially design for general participations, even
for who do not possess technical backgrounds. The modules are wrapped in such a way to
ensure easy understanding on the common application of economic aspects and risks in
Production Sharing Contract. It includes interactive sessions to explain and discuss the
impacts of the industry and future industrial demands.

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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
Engage with key governments, National Oil Companies, Multinational Oil Companies,
and Service Companies to facilitate robust contractual and business models.
Develop skills and competencies required to calculate Cost Recovery & Tax regarding PP
No. 79/2010
Describe the process of forming a POD, WP&B, FQR, AFE, and PIS
Identify and describe the requirements to develop a suitable POD, WP&B, FQR, and AFE
Describe and apply the elements required to successfully POD, WP&B, FQR, AFE, and PIS.

COURSE OVERVIEW
DAY 1:
1. Regulation Aspects in Indonesia Oil & Gas Industry

Legal Aspect in Production Sharing Contract.

Roles & Rules Oil & Gas business under The Law of Oil & Gas Industry No. 22/2001
Authority Distribution among Ditjen Migas, SKK MIGAS, KKKS, and PERTAMINA

2. Petroleum Fiscal Classification

Petroleum Fiscal Arrangement

History of Production Sharing Contract in Indonesia
Overview of Terms & Conditions in Production Sharing Contracts

3. How the PSC works and how the oil and gas industry is structured in Indonesia
Section Scope and Definition
Production Sharing Contract Agreement in brief
Termination in Production Sharing Contract.

DAY 2:
4. Financial Components Relating to Cost Control & Reporting Management
Production Sharing Contract Accounting System
Risk and its relationship to cash flow
Capital & Non-Capital costs application in WP&B
First Tranche Petroleum, costs, cost recovery, and domestic market obligations
PP No. 79/2010 regarding cost recovery & Tax
Case Study: project cash flow model and building a trace diagram
Impact of Cost Recovery on Production Sharing Split to Contractor
Over/ Under Lifting
Indonesian Crude & Gas Price.
5. Cost Control Management in Exploration Stage of PSC
Control Management System
Firm Commitment
6. Cost Control Management in Development Stage of PSC
Describe and implement methods for evaluating a Plan of Development (POD)
Submitting POD documents to SKK Migas.

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DAY 3:
7. Cost Control Management in Exploration and/ or Development Stage of PSC
Describe and identify the meaning of a Work Program & Budget (WP&B)
Describe and identify the meaning of a Financial Quarterly Report (FQR)
Describe and identify the meaning of an Authorization For Expenditure (AFE)
Describe and identify the meaning of a Place Into Service (PIS)
Describe, procedure, and process of forming a WP&B, FQR, AFE, and PIS
PTK No. 007 SKK Migas regarding WP&B
WP&B Revisions and Procedures
AFE Revisions and Procedures
Submitting WP&B, FQR, AFE, and PIS documents to SKK Migas.

WHO SHOULD ATTEND

This course is ideal for Managers, Supervisors, Engineers, Geologist, Economist, Finance,
Legal, 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.

FACILITATOR
After graduating from Petroleum Engineering, Institute of Technology Bandung (ITB),
Kuswo Wahyono completed his Magister of Management in Gajah Mada University (UGM),
Yogyakarta. He worked for Pertamina EP, BPPKA, and BPMIGAS for more than 28 years
experience.
Some other experiences are: job assignment in LEMIGAS (1983-1986), CALTEX in DallasTexas-USA (August-November 1987), Petroleum Economics Course in Institute Francais du
Petrole (IFP) in Paris-France (April-May 1992), and JOB Pertamina-Talisman OK PSC as Chief
Petroleum Engineer (1993-1996).
His expertise focus on petroleum engineering technique and business integration for
improved asset investment decision making using portfolio and optimization study, technoeconometric forecasting modeling, risk analysis and valuation. He also has BPMIGAS
Certificate of PTK 007 Revision I/2009, regarding Tender process and procedure in
Indonesian Production Sharing Contract.
Several key positions had been achieved in his carrier, such as Head of Field Operation
Division in BPMIGAS, Head of Exploitation Division in BPMIGAS, Executive Advisor BPMIGAS,
VP Management Representative of BPMIGAS for CNOOC, Executive Advisor PT Pertamina
Hulu (Persero), Audit Committee in PT Benakat Petroleum Energy (Tbk), President of IATMI
(Society of Indonesian Petroleum Engineers), co-Chairman in Training Program of SPE-Java
Section (Society of Petroleum Engineers-Java Section), etc.
E-mail: kuswowy@yahoo.com / HP 081.1850.1310

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POD, WP&B, FQR, and AFE CONCEPTS based on

PRODUCTION SHARING CONTRACT ASPECTS
Discovery
Delineation
Exploration
Abandonment
Tertiary
Development
Secondary

Primary
Oleh:
KUSWO WAHYONO

SINGHASARI RESORT & HOTEL,

BATU, MALANG
9 11 September 2014
1
Kuswo Wahyono, Sheraton KutaHARUS
Hotel, Bali, 18 MENCANTUMKAN
- 20 Desember 2013
PENGGUNAAN DAN PENGGANDAAN
REFERENSI

Nama: Kuswo Wahyono

Pendidikan:

S1, Teknik Perminyakan, Institut Teknologi Bandung,

S2, Magister Management, Fak. Ekonomi, Universitas Gadjah Mada, Yogyakarta.

Pengalaman:

2011, Komite Audit Dewan Komisaris PT Benakat Petroleum Energy (Tbk)

2009, Staff Ahli Direktorat Pertamina Hulu PT Pertamina (Persero)

2009, VP Representative Manajemen BPMIGAS.

2007, Tenaga Ahli, BPMIGAS.

2004, Kepala Divisi Eksploitasi, BPMIGAS.

2002, Kepala Divisi Operasi Lapangan, BPMIGAS.

2000, Kepala Dinas Eksploitasi, Div. Produksi, PERTAMINA Dit. Hulu.

1999, Kepala Subdin Project Economic, PERTAMINA BPPKA, Jakarta.

1996, Kepala Subdin Res-Prod, Dinas EPT, PERTAMINA EP, Jakarta.

1993, Chief Petroleum Engineer, JOB Pertamina-Talisman (OK) Ltd.

1992, Kepala Teknik Reservoir, Unit III, Cirebon.

1992, Institute Francais du Petrol, Paris, France.

1988, Reservoir Engineer, Unit III, Cirebon.

1987, Job Assignment, CALTEX, Dallas, Texas, USA.

1983, Job Assignment PPTMGB LEMIGAS, Jakarta.

1981, PERTAMINA EP, Jakarta.

Organisasi:

2005-2010, Ketua Umum Koperasi Bina Petro Mandiri (KBPM) BPMIGAS.

2006-2008, Ketua Umum Ikatan Ahli Teknik Perminyakan Indonesia (IATMI).

2004-2006, Ketua I Bidang SDM, Ikatan Ahli Teknik Perminyakan Indonesia (IATMI).

2000-2001, Co-Chairman Technical Program Society of Petroleum Engineers (SPE)
 E-mail: kuswowy@yahoo.com / HP 081.1850.1310

Kuswo Wahyono, Sheraton Kuta Hotel, Bali, 18 - 20 Desember 2013

POD, WP&B, FQR, and AFE CONCEPTS based on

PRODUCTION SHARING CONTRACT ASPECTS
OVERVIEW:

Aspek-aspek hukum dalam industri migas Indonesia

Sejarah dan jenis-jenis Production Sharing Agreement
Aspek-aspek Finansial dalam penyusunan POD, WP&B, dan AFE
Definisi costs, cost recovery, First Tranche Petroleum (FTP), dan DMO
Overview tentang project economics dalam sistem PSC di Indonesia
Fiscal system untuk memaksimumkan revenue Pemerintah dan investor industri migas
Commitment dalam Exploration Stage
Plan of Development (POD)
Work Program & Budget (WP&B)
Financial Quarterly Report (FQR)
Authorization For Expenditure (AFE)
Closed Out Report AFE
Place into Service (PIS)
Menentukan elemen-elemen untuk menyusun POD, WP&B, FQR, AFE, dan PIS
Tata cara (prosedur dan proses) penyusunan POD, WP&B, FQR, AFE, dan PIS
Tata cara (prosedur dan proses) revisi POD, WP&B, dan AFE

AGENDA
Tanggal:
09-09-2014:

1. ASPEK REGULASI
2. JENIS-JENIS KONTRAK KERJA SAMA
3. PRINSIP-PRINSIP KONTRAK PRODUCTION SHARING

10-09-2014:

4. ASPEK FINANSIAL
5. MANAJEMEN PENGENDALIAN & PENGAWASAN KKS
6. PLAN OF DEVELOPMENT

11-09-2014:

7. WP&B, FQR, AFE, dan PIS

8. PENUTUP

Terima kasih atas beberapa bahan presentasi dari BPMIGAS sebagai acuan,
kepada bapak-bapak: Trijana Kartoatmodjo, Bambang Yuwono, Gunawan Sutadiwirya, Anditya MT Ibrahim,
dan Ibu Ira Miriawati, dan lainnya.