TRAINING PETROLEUM ECONOMIC: PSC ANALYSIS & EVALUATION

DESCRIPTION

The course participants will have a thorough background understanding of the general concepts, procedure and terminology of petroleum economics and profitability analysis of Oil and Gas Projects in PSC. In particular it emphasizes the peculiarity and fiscal arrangements of PSC. It also reviews the various contractual and fiscal terms prevalent in the petroleum industry, and how the various arrangements affect investment profitability.

OUTLINE COURSE

• OVERVIEW

  • Indonesia Upstream Oil And Gas Business Process
  • Upstream Oil And Gas Activity Phase

• PSC COST RECOVERY

  • Business Process of PSC Cost Recovery
  • PSC Characteristic
  • PSC Term And Conditions:
    • FTP
    • Investment Credit
    • Cost Recovery
    • Equity to be Split
    • Domestic Market Obligation
    • Tax
    • PSC Cost Recovery Mechanism
    • PSC Economic Flow & Scheme
    • Field Commercialization
    • Sharing Adjustment

• PRINCIPLE OF PETROLEUM ECONOMIC CALCULATION

  • Oil and Gas Production Profile Which Will Be Produced
  • Costs That Have Or Will Be Issued
  • Oil and Gas Prices Per Unit Volume
  • Sharing Mechanisms

• PETROLEUM ECONOMIC ANALYSIS

  • Cash Flow Analysis
  • NPV Analysis
  • IRR Analysis
  •  MARR
  •  POT
  • Comparing Economic Indicator

• RISK ANALYSIS

  • Oil and Gas Upstream Business Risk
  • Risk & Uncertainty
  • Expected Value Concept
  • Decision Tree Analysis
  • Sensitivity Analysis
  • Spider and Tornado Diagrams

• Petroleum Economists & Commercial Analysts: Specialists responsible for modelling Production Sharing Contract (PSC) cash flows, evaluating Cost Recovery vs. Gross Split mechanisms, and computing net cash generation.
• Finance, Tax & Accounting Managers: Corporate leaders handling PSC cost auditing, first-tranche petroleum (FTP), domestic market obligation (DMO), non-capital vs. capital cost recovery, and corporate tax liabilities under PSC regimes.
• Business Development & Asset Managers: Executives evaluating farm-in/farm-out opportunities, asset acquisitions, contract extensions, and new PSC block bids.
• Commercial & Contract Engineers: Personnel negotiating PSC terms, Joint Operating Agreements (JOAs), and managing compliance with national petroleum authorities.
• Government & Regulatory Officers: SKK Migas, Ministry of Energy, and tax authority representatives overseeing fiscal term compliance, field development plan (FDP) economics, and cost recovery verification.