INTRODUCTION TO INTRODUCTION TO WORK PROGRAM & BUDGET (WP&B)WORK PROGRAM & BUDGET (WP&B)

ANDANDANDANDAUTHORIZATION FOR EXPENDITURES AUTHORIZATION FOR EXPENDITURES

(AFE)(AFE)

DIVISI PENGENDALIAN FINANSIAL DIVISI PENGENDALIAN FINANSIAL -- BPMIGASBPMIGAS

WORK PROGRAM & BUDGET WORK PROGRAM & BUDGET (WP&B)(WP&B)

PSC BUDGETING AND REPORTING OVERVIEW

PSC Contract

Exh. C

Work Program &

FinancialQuarterly

Report

POD

Work Program &Budget

routine Projects

Report

POD

AuthorizationFor

Expenditures(AFE)

AFEClose-out

report

33

(AFE) p

Budget Schedules in WP&B

The budget schedules in Work ProgramAnd Budget (WP&B) were designedto identify and summarize the financialaspects of the annual plan.

44

PSC Annual Budget Preparation & Financial Reporting

Expl. DrillingBS 5

Dev. DrillingBS 6

Misc CAPEXBS 7

Admin.CapexBS 12

Misc.Prod.CapexBS 10

Prod.fac CapexBS 9

G&A exp.summryProd Exp Summry

gas

oil

p yBS 11

Prod. Exp. SummryBS 8

Expl&Devt SumryBS 4 FR 8 FR 11

FR 4 attchmnt Attchmntattchmnt

Key Ops Statstic

Exps&Expend S’mryBS 3 & 3A

Cap.asset PISBS 13

DepreciationBS 14FR 2 FR 14

FR 3

Key Ops StatsticBS 2

BS 13

Prod. Lift fr’castBS 16

FR 15 FR 16Prg. Supp list

BS 15

May 08May 08 55

Fin status rprtBS 1

FR 15

FR 1

Bgt yrs ExpdtresBS 17

WORK PROGRAM & BUDGET vs. BPMIGAS QUARTERLY REPORTWORK PROGRAM & BUDGET vs. BPMIGAS QUARTERLY REPORT

BUDGET FQR DESCRIPTIONSchedule 1 Report 1 Financial Status ReportSchedule 2 Report 2 Key Operating Statisticsp y p gSchedule 3 Expense and Expenditures Summary

Schedule 3A Report 3 Expenditures SummarySchedule 4 Report 4 Exploration and Development ExpendituresSchedule 5 Exploratory Drilling Capital & Operating ExpenditureS h d l 6 D l t D illi C it l O ti E ditSchedule 6 Development Drilling Capital & Operating ExpenditureSchedule 7 Miscellaneous Exploratory Capital ExpendituresSchedule 8 Report 8 Production Expense SummarySchedule 9 Production Facilities Capital ExpendituresSchedule 10 Miscellaneous Facilities Capital ExpendituresSchedule 10 Miscellaneous Facilities Capital ExpendituresSchedule 11 Report 11 Administrative Expense SummarySchedule 12 Miscellaneous Administrative Capital ExpendituresSchedule 13 Capital Assets to be Placed into ServiceSchedule 14 Report 14 Depreciation ScheduleSchedule 15 Report 15 Detailed Project Support Listing/Project Status ReportSchedule 16 Report 16 Lifting Forecast/Lifting Share AnalysisSchedule 17 Expenditures Summary by Category

66

Currency y

The currency units to be used in theAnnual Plan are US $.Budget Sch. 1-17 are to be rounded off tothe nearest $000;Budget sch 18 26 are to be rounded off toBudget sch. 18-26 are to be rounded off tothe nearest $

77

Detail of Budget Schedule g

Sch. 1 :Budgeted Financial Status report

• To summarize the elements necessary tocalculate the share of Revenue betweenGovernment and Contractor.

• To summarize the status of UnrecoveredOther costs, and Gov’t Tax entitlement

88

Detail of Budget Schedule g

Sch. 2 :Budgeted Key Operating Statistics

To obtain forecasts of key operating statisticssuch as Production i.e number of producingfields well operating Price Cost per b o efields, well operating, Price, Cost per b.o.e,Drillings, well completed, well successful,wildcat wells, footage drilled, seismic runs

99

Detail of Budget Schedule g

Sch. 3 :Expense and Expenditure BudgetSummary

• To summarize currently recoverableTo summarize currently recoverablebudgeted expenses by quarters

• To summarize budgeted cap.ex for thebudget yearbudget year

Sch. 3 A• To summarize capital and non-capital

expenditure by quarters

1010

Detail of Budget Schedule

Sch. 4 :Exploration and Development

g

p pExpenditure Budget Summary

• To summarize all budgeted expendituresTo summarize all budgeted expendituresrelated to exploration and dev’t activities

• To separate non-capital operatingexpenditures for cost recovery purposesexpenditures for cost recovery purposes

Attchment to sch. 4 : ( Personnel cost, technicalServices contract/ services material insuranceServices, contract/ services, material, insurance,Environment control, sundries)

1111

Detail of Budget Schedule

S h 5 B d t d E l t D illi E ’

g

Sch. 5 :Budgeted Exploratory Drilling Exp’res

• To summarize budgeted exploratory drillingdit b f ti l t fprogram expenditures by functional type of

expenditures• To list budgeted cap. Costs for items which

will be P.I.S during the budget year. Capt-uring this amount will assist in the comput-ation of depreciation

1212

Detail of Budget Schedule

S h 6 B d t d D l t D illi E

g

Sch. 6 :Budgeted Developments Drilling Exp.

• To summarize budgeted development drillingprogram expenditures by functional type ofexpenditures

• To list budgeted cap. Costs for items whichwill be P.I.S during the budget year.Capturing this amount will assist in thecomputation of depreciation

1313

Detail of Budget Schedule g

Sch. 7 :Budgeted Miscellaneous Capex.

• To summarize budgeted miscel. capex forTo summarize budgeted miscel. capex forE&D activities which are not incl in sch 5-6

• To list budgeted cap. costs for items whichwill be P I S during the budget year Capt-will be P.I.S during the budget year. Capturing this amount will assist in the comput-ation of depreciation

1414

Detail of Budget Schedule

Sch.8 :Prod. Expense Budget Summary

g

• To summarize all recoverable budgetedpro. Expenses by functional exp. category

• To list budgeted cap. costs for items whichill b P I S d i th b d twill be P.I.S during the budget year.

Capturing this amount will assist in thecomputation of depreciation

A tt h t t S h 8 h ll l if th d t ilAn attachment to Sch. 8 shall clarify the detailsof each expense by showing the kinds of exp.and the sources of the services for which theexpenses were incurredexpenses were incurred

1515

Detail of Budget Schedule

Sch 9 :Budgeted Production Facilities

g

Sch.9 :Budgeted Production FacilitiesCapex

T i b d t d d ti f ’• To summarize budgeted production fac’s.Programs by functional type of expend’res

• To list budgeted cap. costs for items whichwill be P.I.S during the budget year. Capt-uring this amount will assist in the comput-ation of depreciationp

1616

Detail of Budget Schedule g

Sch.10 :Budgeted Miscel. Prod. Fac. capex

• To summarize budgeted miscel Capex notTo summarize budgeted miscel. Capex notin sch. 9

• To list budgeted cap. Costs for items whichwill be P I S during the budget year Capt-will be P.I.S during the budget year. Capt-uring this amount will assist in the comput-ation of depreciation

1717

Schedules ….Detail of Budget Schedule

Sch.11 :Admin. Expense Budget Summary

g

• To summarize all recoverable budgeted adm.exp. by functional expenditure category

• To list budgeted cap. costs for items whichg pwill be P.I.S during the budget year. Capt-uring this amount will assist in the comput-ation of depreciation

The aim of attachment 11 mainly to monitor thekinds of support the Operator supplies and to

t l l ll th l ti tenumerate clearly all the expenses relating tothe obligations for improvement of the socialenvironment

1818

Detail of Budget Schedule g

Sch.12 :Budgeted Admin. Capex

• To summarize capex budgeted for adminTo summarize capex budgeted for admin.• To list budgeted cap. costs for items which

will be P.I.S during the budget year. Capt-uring this amount will assist in the comput-uring this amount will assist in the comput-ation of depreciation

1919

Detail of Budget Schedule g

Sch.13 :Budgeted Capital Assets to be PlacedS ( S)Into Service (PIS)

• To summarize capex for assets to be PISduring the budget year

• To monitor depreciation by type of asset

2020

Detail of Budget Schedule

Sch 14 :Budgeted Depreciation For the Year

g

Sch.14 :Budgeted Depreciation For the Year

• To calculate budgeted depreciationfor the yearfor the year

Depreciation for the current year will becalculated in accordance with the rulescalculated in accordance with the rulespresented in exhibit C

2121

Schedules ….Detail of Budget Schedule

Sch.15 :Detailed Program Support Listing

g

g pp g

• To provide a complete list of all programs approvedby BPMIGAS, and all programs for which approvalwill be requested during the budget year

• To establish budget control over AFE’s preparedd i th b d tduring the budget year

• To list budgeted capital costs for items to be PISduring the budget year Capturing this amountduring the budget year. Capturing this amountwill assist in the computation of depreciation

2222

BPMIGASPRODUCTION SHARING CONTRACT

L Capital Portion1) 2) 3)

Operator :Contract Area :Budget Year :

DETAILED PROGRAM SUPPORT LISTING

Line

DescriptionNew

ProgramOld

ProgramTotal

Program4) Anti-cipatedExpd. Asof 31/12/

Capital Portion

5)CurrentYear

6)FutureYear

Budgeted Expend.7) Total

8) To bePIS

This Year

1) 2) 3)

9) Anti-cipated

Non - Capital Portion

10)C 11)F

Budgeted Expend.12) Total

SCHEDULE 15

Expd. Asof 31/12/

10)CurrentYear

11)FutureYear

)

2323

MONITORING PROJECTS

BPMIGAS

Actual Expenditures

Operator :Contract Area :Contract Area No. :

BPMIGASPRODUCTION SHARING CONTRACT

PROJECT STATUS REPORTBPPKA Approval Total Budget

AFE by CategoryAFENo. Letter

No. Date

Actual Expenditures

PriorYears YTD

RemainingBudgetInception

to Date

1 2 3

BPPKA Approval Total Budget

Original Revised

4 5 6 7 8 91 2 3 4 5 6 7 8 9

EstimateActual

Amount

Over/(Under)Budget Plan Actual Date

RemarksStart Date Completion

%

11 12 13 14 15 1610

2424

REPORT 15

Detail of Budget Schedule g

Sch.16 :Production Liftings Forecast

• To capture forecast production/liftings• To capture forecast production/liftings

Sch. 16.1 est oil liftings in thousands of barrelsSch 16 2 est gas liftings in millions of cubic feetSch 16.2 est gas liftings in millions of cubic feet

For purposes of Sch 16 preparation, the Operator mayassume liftings to be equal to productionassume liftings to be equal to productionOne schedule should be prepared for each kind of gasProduction, such as LNG and Residue Gas

2525

Detail of Budget Schedule g

Sch.17 :Budget Year Expenditures

T id ddi i l i f i• To provide additional information oncapital and operating expenditure

Containing current operating expendituresand capital expenditures.

2626

AUTHORIZATION FOR AUTHORIZATION FOR EXPENDITURES EXPENDITURES EXPENDITURES EXPENDITURES

(AFE)(AFE)

AUTHORIZATION FOR EXPENDITURES (AFE)( )

AFE t i d i d t idAFE system is designed to provideManagement i.e. BPMIGASwith information necessary to analyze,evaluate, approve, and monitor expenditureprojects of the PSC

May 08May 08 2828

PROJECT

A project, by definition is a temporary activitywith a starting date, specific goals and conditions,defined responsibilities a budget a planningdefined responsibilities, a budget, a planning,a fixed end date and multiple parties involved.

May 08May 08 2929

NO AFENO AFEAn activityAn activity Is it a project ?Is it a project ? NoNo

NO AFENO AFEREQUIREDREQUIRED

YesYes

AFE REQUIREDAFE REQUIREDMAIN PROJECTSMAIN PROJECTS

- Exploration Surveys- Drilling & Workover

OTHER PROJECTSOTHER PROJECTSe.g. Technical Services

First Office Rent

3030

Drilling & Workover- Capital Assets

First Office RentRecreational Facilities

Two type of Projects using AFE systemyp j g y

Main Project : Exploration, surveys, Drillingand work over Projects, Capital Assets Projectsj , p jdedicated to expl. and prod. activities, Platformcertification

Certain Other Projects: (supporting activity such ascomputerization, rent office, Technical Services)

ith ti t d dit f US$ 500 000with estimated expenditures of US$ 500,000 or more

3131

VARIANCES

• When budget of a project is revised a new WP&B• When budget of a project is revised, a new WP&Bprepared to established a revised budget

• Seek approval from BPMIGAS when est. total cost ofthe project is expected to vary over 10% from thethe project is expected to vary over 10% from theoriginal estimate on the overall project or 30% on anyone cost category

• Close out report (completion report) submitted withinp ( p p )4 months after the corresponding projects are completed

• When actual amount varies 10% or more over thebudget of a project, the Operator has to attachexplanation in detail and has to seek for BPMIGASconfirmation of the variance

3232

AFE SCHEDULES

AFE non Capital :

Sch. 18 A : Airborne SurveySch. 18 B : Land SurveySch. 18 C : Marine SurveySch. 18 D : Data ProcessingSch. 18 E : Exploration and Exploitation studyp p y

May 08May 08 3333

AFE SCHEDULES

AFE Capital/ non Capital :AFE Capital/ non Capital :

Sch. 19 : Drilling well/ workoverSch 20 : Drilling/ work over material listSch. 20 : Drilling/ work over material list

(att. To Sch. 19)Sch. 25 : Platform certificationsSch 26 Certain other ProjectSch. 26 : Certain other Project

May 08May 08 3434

AFE SCHEDULES

AFE Capital :AFE Capital :

Sch. 21 : Offshore Platform FacilitiesSch 22 : Other Offshore FacilitiesSch. 22 : Other Offshore FacilitiesSch. 23 : Onshore FacilitiesSch. 24 : Component List Facilities

( attach to Sch. 21 or 22 or 23)

May 08May 08 3535

AFE 18A - AIRBORNE SURVEY

AUTHORIZATION FOR EXPENDITURES (AFE)AUTHORIZATION FOR EXPENDITURES (AFE)SCHEDULE ILLUSTRATIONSCHEDULE ILLUSTRATION

AFE 18B - LAND SURVEY

AFE 18C - MARINE SURVEYAFE 18D - DATA PROCESSING

AFE 20 - DRILLING &

AFE 18E - EXPLORATION & EXPLOITATION

SURVEY 0 G &WORKOVER

MATERIAL LISTAFE 19 - DRILLING & WORKOVERAFE 21 - OFFSHORE

PLATFORM FACILITIES

AFE 22 - OTHER OFFSHOREFACILITIES

AFE 23 ONSHORE FACILITIES

AFE 24 - FACILITIESCOMPONENT LIST

AFE 25 - PLATFORMCERTIFICATION

AFE 23 - ONSHORE FACILITIES

May 08May 08 3636

AFE 26 - CERTAIN OTHERPROJECTS

BPMIGASPRODUCTION SHARING CONTRACTS

AUTHORIZATION FOR EXPENDITURES Schedule No

Operator :Contract Area :Contract Area No.:

Schedule No. ____AFE No. :Start Date :Completion Date :Close-Out Date :

Survey Type :Program Name :Project Name :

Close Out Date :

Description

OriginalBudget

Revised Budget Actual Expenditures

PriorYear

CurrentYear TOTAL

ActualOver/(Under)

Budget

PercentageOver/(Under)

Budget

Lin

Year Yeare

Time Phased Expenditures- This YearThis Year- Future Years

Operator: BPMIGAS:Approved by _____ Position _____ Date ___ Approved by _____ Position ___

3737

Date___ Approved by _____ Position _____ Date ___

SCHEDULE 19 - DRILLING AND WORKOVER Formation Evaluation1. TANGIBLE COSTS

Casing, Casing Accessories, Tubing,Well Equipment - surface/subsurface

Formation Evaluation- Water- Mud Logging Services- Drill stem Tests- Open Hole Electrical Logging Services2. INTANGIBLE COSTS

Preparation & Termination- Survey- Location Staking/Positioning

Open Hole Electrical Logging ServicesCompletion- Insurance - Casing Liner & Tubing Installation- Cement, Cementing & Pump Fees

- Wellsite and Access Road- Service Line & Communication- Water System- Rigging up / Rigging down

, g p- Cased Hole Electrical Logging Services- Perforating & Wireline Services- Stimulation Treatment- Production Tests

Drilling & Workover Operation- Contract Rig- Drilling Rig Crew- Mud, Chemical & Engineering Svc.

i & C h d

General- Supervision- Insurance- Permits & Fees

M i R l & Ch- Bit, Reamer & Core head- Equipment Rent- Directional Drilling & Surveys- Diving Services

C i I ll i

- Marine Rental & Charters- Helicopter Aviation & Charges- Land Transportation- Fuel & Lubricants

Camp Facilities

3838

- Casing Installation- Cement, Cementing & Pump Fees

- Camp Facilities- Allocated Overhead- Technical Services from Abroad

BPMIGAS SCHEDULE NO.19PRODUCTION SHARING CONTRACTS

AUTHORIZATION FOR EXPENDITURES - DRILLING AND WORKOVER

Operator :Contract Area :Contract Area No.:

AFE No. :Date :

Project Type Well Name Well Type Platform/tripodField/StructureBasin

: Drilling/Workover : : Expl/Del/Dev. :::Basin :

LocationWater Depth

Spud Date

: ________: ________ ft

Program:

Surface Coord.Elevation

: Lat ______ Long :_____: ______ ft Contractor : _____

Actual Program ActualRig Days :p

Completion DatePlaced into ServiceDrilling Days

i d d A l di

____________: ____________: ____________: ____________Close-Out Date

________________________________________________Completion Type : single/dual/triple

Rig Days : _____ ______Total Depth : _____ ______Well Cost/foot $/ft : _____ ______Well Cost/Day $/d : _____ ______

DescriptionOriginalBudget

Revised Budget Actual Expenditures

PriorYear

CurrentYear TOTAL

ActualOver/(Under)

Budget

PercentageOver/(Under)

Budget

Lin

____

Time Phased Expenditures- This Year- Future Years

3939

Operator: Pertamina MPS:Approved by _____ Position _____ Date ___ Approved by _____ Position ___ Date___ Approved by _____ Position _____ Date ___

PERTAMINA / MPSPRODUCTION SHARING CONTRACTS

AUTHORIZATION FOR EXPENDITURES - DRILLING AND WORKOVER

SCHEDULE NO.20ATTACHMENT TO SCH. NO.19

WORKOVER

Operator :Contract Area :Contract Area No.:

Project Type Well Type Field/StructureWell Name

: Drilling/Workover : Expl/Del/Dev. ::

AFE NO. :DATE :

DescriptionUnit ofIssue

Line

BUDGET

Issued from Stock

QTY U P Total

New Purchases

QTY U P Total

Grand Total

QTY AMT

ACTUAL

QTY U P Total

ActualOver/(Under)

QTY AMT QTY Disposition

Surplus Materials

QTY U.P Total QTY U.P TotalQTY AMT QTY U.P Total QTY AMT QTY Disposition

Operator: BPMIGAS:Approved by Position Date Approved by Position

4040

pp y _____ _____ ___ pp y _____ ______Date______Approved by _____ Position _____ Date ___

AFE FOR FACILITIESAFE FOR FACILITIESSCHEDULE NO. 21

OFFSHORE PLATFORM FACILITIES- Jacket

Deck- Deck- Production Process Facilities- General Support

SCHEDULE NO. 22OTHER OFFSHORE FACILITIES- Sub Marine Pipeline- Field Production Junction Facilities- Other

G l S t

SCHEDULE NO. 24COMPONENT

LIST

DetailedItems

- General Support

SCHEDULE NO. 23ONSHORE FACILITIES

Civil Construction

ORIGINAL BUDGETREVISED BUDGET

- Civil Construction- Building- Oil / Gas Production Facilities- Utilities Facilities- Trunk Line

ACTUAL

Quantity Material Other Total

4141

- Other- General Support

yCosts Costs Costs

SCHEDULE NO. 21 - OFFSHORE PLATFORM FACILITIES

JACKET / DECK / PRODUCTION PROCESS FACILITIES• Design Engineering (Local & Abroad)• MaterialsMaterials• Fabrication (Onshore & Offshore)• Installation (Onshore & Offshore)• Transportation

GENERAL SUPPORT• Supervision• Insurance• Permits & Fees• Transportation• Overhead (Field, Jakarta & Office)

Materials commonly provided by Company:Steel for Jacket & Deck, Pipeline & Process Facilities

Works cond cted b Contractor :

4242

Works conducted by Contractor :Engineering, Fabrication, Installation & Transportation

SCHEDULE NO. 22 - OTHER OFFSHORE FACILITIES

SUB-MARINE PIPELINE / FIELD PROD. JUNCTION FACILITIES • Engineering (Local & Abroad)• Materials• S i• Surveying• Installation • Transportation

OTHER FACILITIESOTHER FACILITIES• Engineering (Local & Abroad)• Materials• Fabrication (Onshore & Offshore)( )• Surveying• Installation (Onshore & Offshore)• Transportation

GENERAL SUPPORT• Supervision• Insurance• Permits & Fees

4343

Permits & Fees• Transportation• Overhead (Field, Jakarta & Office)

SCHEDULE NO. 23 - ONSHORE FACILITIES

CIVIL CONSTRUCTION• Surveying• Engineering (Local & Abroad)

OTHER• Engineering (Local & Abroad)• Materials• Engineering (Local & Abroad)

• Site Preparation• Construction

BUILDING

• Materials• Installation• Transportation

GENERAL SUPPORTBUILDING• Engineering (Local & Abroad)• Materials• Construction

GENERAL SUPPORT• Supervision• Insurance• Permits & Fees

• Transportation

OIL/GAS PROD. FACILITIES /UTILITIES / TRUNK LINE

• Transportation• Overhead (Field, Jakarta & Office)

• Engineering (Local & Abroad)• Materials• Construction• Transportation

4444

a spo tat o

SCHEDULE NO. 24 - COMPONENT LIST - FACILITIES

ŵ Supporting each component facility of Schedule 21 22 &ŵ Supporting each component facility of Schedule 21, 22 & 23.

ŵ Component Costs includes materials (ex stock or newŵ Component Costs includes materials (ex stock or new purchase) and installation

ŵ The new purchase should consider the available stock of pconsumable materials since they have been charged to Operating Costs.

ŵ Included in material/component costs are installation, insurance, freight, handling and other cost for delivery to warehouse.

4545

ŵ Other Costs : e.g. engineering, fabrication, installation, etc.

SCHEDULE NO. 25 - PLATFORM CERTIFICATION

Submitted for each individual platform consisting the costs of:- Design Approval- Inspection, Coordination and Reports- Diving Inspectors and Equipment- Boat Rental- Supervision, Catering, Transportation and Fuel

Contingency not exceeding 10% of total AFE- Contingency not exceeding 10% of total AFE

4646

SCHEDULE NO. 26 - OTHER PROJECTS

This Schedule applies to projects other than Main Projects (Projects dedicated to Exploration & Production Activities), estimated cost of US$500 000 or moreestimated cost of US$500,000 or more.

Examples of Other Projects :Office Rental (First Activity - Package)Office Rental (First Activity Package)ComputerizationEnvironmental ActivitiesConstruction Housing & WelfaregOverhaul & Major Repair

4747

TerimaTerima KasihKasih

4848

DIVISI PENGENDALIAN FINANSIAL DIVISI PENGENDALIAN FINANSIAL -- BPMIGASBPMIGAS