INTRODUCTION POD, WP&B & AFE

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). In the Indonesia PSC Term, POD, WP&B and AFEis the integratedaspect that every KKKS should propose to SKKMIGAS. Therefore, between SKKMIGAS and KKKSshould have the same perception all about aspect of POD, WP&B and AFE especially about the basic principle, mechanism & procedure, system and operational guidance. read: Strategic Talent Management In The Oil and Gas Industry

Course Content

• Overview of Upstream Oil & Gas Industry
• The PSC term and conditions
• PSC Accounting Principle
• POD:
• Clasification of POD
• POD Content
• WP&B:
• Definition of WP&B
• Budget Preparation: Explanation & Developing Budget Schedule 1 – 17
• AFE:
• Definition of AFE
• Activity Classification
• Explanation Budget Schedule 18 – 24
• Closed Out AFE

 

 

IMPLEMENTATION OF CLOSED OUT AFE

 

Authorization for Expenditure ("AFE") is the authorization of financing work plans and budgets for project-based activities provided by SKK Migas to KKKS based on the results of technical evaluation and costs.Whereas Closed Out AFE is the responsibility of implementing and Realizing Project Costs / AFE in each KKKS Working Area based on AFE and / or AFE revisions approved by SKK Migas, either in Bundling or Unbundling with WP&B approval.KKKS reports on implementation and Project Cost Realization / AFE. Then SKK Migas conducts an evaluation / examination of the Project Cost Realization that meets certain criteria, where the results of the project financial audit will be used as one of the considerations in the evaluation / examination of Closed Out AFE Report related projects.

COURSE CONTENT:

·         Overview of Upstream Oil & Gas Industry

·         AFE:

o   AFE Characteristic

o   Activity Classification

o   AFE Approval Mechanism

o   Budget Schedule 18 – 24

·         Submission of Closed Out AFE Report

o   Completeness of Closed Out AFE Report Documents:

§  Drilling / Workover / Well Service Project

§  Facilities and Well ConnectionProject

§  Survey, Study, FEED, Data Processing and  Data Reprocessing Project

§  Certain Other Project

o   Completeness of Closed Out AFE Report Documents

o   Procedures for Checking the Completeness of Closed Out AFE Report Documents

·         Evaluation / Inspection of Closed Out AFE Report

·         Closed Out AFE Approval