This training program will discussed about PSC Management principles of Cost Recovery and Gross Split, and what it's different.
Backgroud and Objectives
2017 is a new chapter in the oil and gas industry, especially in the upstream sector. Why is that? The government has implemented Government Regulation No. 8/2017 related to profit sharing schemes based on Gross Split Production. This regulation will apply in the future and replace the previous scheme of PSC based on cost recovery (CR). Of course every change (regulation) aims to be beneficial for the parties (in this case the Government as the owner of Mining Rights) and Investors (Industry players), even though at the beginning of its birth and afterwards many Pro-Cons. Changes to this regulation, at least will have an impact on financial requirements, and there are still many other regulations related, such as taxation aspects. In this 3 day training participants will get an understanding of:
• The background of the implementation of the Gross Split scheme and the difference with cost recovery;
• Conceptual and basic principles of the PSC Gross Split;
• Advantages of gross split patterns for contractors and the government;
• Implementation of the Gross Split scheme and its consequences;
• Tax aspects in the Gross Split PSC scheme.
- Overview of the Current oil and gas in Indonesia and Update issues
- Overview Oil and gas upstream business: system royalty, system production sharing contract, system service, contract, Joint ventures.
- The philosophy of PSC, Risk Management on PSC and Property right
- PSC Principles: Project principles, full cycle principles, risk management, ring fencing.
- PSC calculation: entitlement principles, over under lifting, settlement.
- Cost Recovery: Operating Cost, Capital expenditures, PSC Depreciation, Prior Year Cost
- PSC Gross Split Conceptual and Basic Principles
- Understanding GR # 8 & 52 / 2017
- Base Split of Oil and Gas
- Variable & Progressive Split Terms
- Overview Taxation in Oil and Gas
- Tax Treatment in PSC CR Vs GS
- Fiscal Incentive in PSC Gross Split
- Sharing information, QA, and discussions
- Lecturing and Class room session and Case Study
- Interactive sharing information and experience
- Group discussion, question and answer session
Who should attend?
- Financial Management
- Accounting Management
- Budgeting and Cost Control Management
- Project Analyst
- Cost Engineers
- Investment Analyst
- Any person who wish to know the Cost Recovery and Gross Split of PSC