TRAINING POD, WP&B, AFE CONCEPT BASED IN UPSTREAM OIL & GAS

DESCRIPTION

Plan of Development is the key point in Oil & Gas Business of Indonesia Upstream Oil and Gas Industry. POD is a guideline for KKKS to operate their project. There is a planning program that describe of project activity during the contract. KKKS should construct the detail of program activities and budgeting (WP&B) and Financial Authorization (AFE). POD, WP&B and AFE is the integrated aspect that every KKKS should propose to SKKMIGAS. Therefore, between SKKMIGAS and KKKS should have the same perception all about aspect of POD, WP&B and AFE especially about the basic principle, mechanism & procedure, system and operational guidance.

OUTLINE COURSE

MODULE 1: INTRODUCTION TO THE UPSTREAM OIL AND GAS INDUSTRY & REGULATIONS

• An Introduction to the Industry: Understanding the dynamics of the oil and gas business and the critical role of planning and budgeting.
• Institutional Framework: The roles of the Government, SKK Migas, and Production Sharing Contract (PSC) Contractors.
• Production Sharing Contract (PSC): A refresher on the PSC concept, cost mechanisms (cost recovery or gross split), and tax aspects.
• System Integration: The workflow relationship between the POD, WP&B, and AFE documents.

MODULE 2 : PLAN OF DEVELOPMENT (POD)

• Definition & Objectives: To understand the POD as the basic guideline for KKKS in operating field development projects.
• Key Components: Technical aspects (geology, geophysics, reservoir, production, facilities) and commercial aspects (project economics).
• Preparation Procedures: The process for submitting proposals for the first commercial field development (POD I) as well as subsequent fields (POD II, etc.).
• Case Study: Evaluation of investment profitability indicators and field risk analysis

MODULE 3: WORK PROGRAM & BUDGET (WP&B)

• Definition & Function: Preparation of the KKKS’s annual work plan and comprehensive budget allocation.
• Document Structure: Categorization of exploration, development, production, and general administrative costs.
• WP&B Control & Preparation: BS 1 – BS 17
• Evaluation Process: Mechanisms for discussion, negotiation, revision, and mutual approval with SKK Migas.
• Monitoring & FQR: Introduction of periodic financial performance reporting through the Financial Quarterly Report (FQR).

MODULE 4: AUTHORIZATION FOR EXPENDITURE (AFE)

• Basic Concept: The AFE serves as a financial authorization instrument to fund each specific activity approved in the Work Plan and Budget (WP&B).
• Control Budget & Expenditure: BS 18 – BS 24
• AFE Life Cycle: The submission process, approval by management and regulators, monitoring of actual expenditures, and the close-out process (AFE Close Out).

RECOMMENDED AUDIENCE

• Planning, Budgeting & Cost Control Engineers/Analysts
• Petroleum Economists & Commercial Managers
• Field Development & Asset Managers
• Project Managers & Lead Engineers (Facilities, Drilling, Production)
• Joint Venture (JV) & Contract Specialists Regulatory Compliance & Government Liaison Officers