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INDONESIAN PETROLEUM ASSOCIATION
Professional Division Committee
PRACTICAL INVESTMENT
APPRAISAL AND BUSINESSDECISION ANALYSIS IN
PETROLEUM EXPLORATION &PRODUCTION
With special reference to the Indonesian PSC system
Dates : April 25-29, 2005 (five day course)
Instructor : H.L. Ong, D.Sc.- Lecturer, Institute Technology
Bandung- Advisor to P.T. Geoservices
Venue : Hotel Bali Padma - Legian, Bali
Cost : US$ 1,600 (IPA Members)US$ 1,700 (Non-IPA Members)
Includes:hotel accommodation for 6 (six) nights
PLEASE REGISTER AS SOON AS POSSIBLE TO THE IPA SECRETARIATWisma
Kyoei Prince, 17th Floor (Suite 1701)
Jln. Jendral Sudirman Kav.3 Jakarta 10220 IndonesiaPhones :
572-4284, 572-4285, 572-4286 Fax. : 572-4259
E-mail address : [email protected]@cbn.net.id
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WHAT YOU WILL LEARN
Appreciation of national and international micro- and macro-
economic issues Undertake preliminary estimation of capital and
operating costs, set up cash flow
statements and perform techno- economic project evaluation
Proper evaluation of a bid proposal or ranking alternative
investment proposals. Gaining increasing awareness of the economic
principles that underlie business
decisions. Better understanding of financial parameters
influencing the profit of a project How to improve your business
decisions under risk and uncertainty. Communicate more effectively
with financial managers Prepare individuals to become financially
independent
WHO WILL BENEFIT
The course has been designed for professionals who work in the
oil and service industries.Many of the concepts and examples to be
covered in this course can be of assistance in themanagement of
small to medium enterprises or of personal financial affairs.
Target attendees include:
Explorationists (Geologists & Geophysicists) and
Petroleum/Reservoir Engineers. Project managers, engineers, and
supervisors. Commercial and Business Development analysts working
for the service industries
(Seismic, Drilling, Pipeline, Construction) Portfolio managers
and contract-specialists involved in the preparation of cost
and
engineering estimates Bid Committee members who are evaluating
tenders/bids Independent and individual operators
CONTENT
Global economic outlook of the petroleum industry. Worldwide
supply and demand.Economic awareness in the divestment and
investment of assets. Shareholders
expectation. Economic characteristics of the petroleum industry.
Country risk and costof capital.
Petroleum finance and accounting. Financial statements and Ratio
analysis.Exploration vs. Production costing (SE vs. FC). Reserve
and rate of production.
Cash Flow concepts including various depreciation allowances.
Building cash flowmodels. Exploration sunk cost and depletion of
reserves. Profit/Loss accounts and LCF.
The time value of money. Understanding compounding and
discounting concepts andthe use of formulae or tables for
calculations of PV, FV, and AV. Annuity (capitalrecovery and
sinking fund) in day-to-day operations.
Practical techniques for the ranking of investment proposals.
The calculation and useof Net Present Value (NPV), Internal Rate of
Return (IRR), Benefit-to-Cost ratio,payback, Profit-to-Investment
Ratio (PIR or DPIR), etc.
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Decision analysis. How to identify and quantify project risks
and uncertainties.Statistical and subjective probabilities. How to
perform sensitivity analysis. Expectedvalue and decision trees in
exploration. Choosing the right discount rate.
The Indonesian Fiscal terms (Taxes, Bonus, DMO, etc.).
Indonesian PSC vs. Royalty ofAustral-Asia. The role of oil and gas
in the Indonesian economy. Evolution of thevarious types of
agreements: PSC, JOB, EOR, and TAC. The new Laws on Oil and Gasand
Autonomy of the regions.
INSTRUCTOR
H.L. Ong is a graduate of ITB and received a Government
scholarship to pursue his graduatestudies at the Colorado School of
Mines where he earned his Doctor of Science degree. Dr.
Ong has been teaching at ITB since graduating from Mines in
1968. He was instrumental insetting up P.T. Geoservices in 1971 and
became the Principle Advisor of the company until
hissemi-retirement in 2002.
This course is unique in that it is presented by a person with
extensive teaching experience aswell as running his own successful
company for more than 30 years. As a result the speakerhas the
capability to explain the principles involved with many lively and
topical examplesthroughout the course.
COURSE MATERIALS PROVIDED
The following comprehensive course materials are provided to
enable each participant tofurther his/her studies:
Course Notes and photocopies of pertinent references. Gitman,
L.,J., 2003, Principles of Managerial Finance, 10th ed.,
Addison-Wesley. Newnan, D.G., 1988, Engineering Economic Analysis,
3rd ed., Engineering Press, Inc.,
California (In Indonesia published by Binarupa Askara, Jakarta,
1990).
Newnan, D.G., 1990, Solution Manual of Engineering Economic
Analysis, 3rd. ed.Binarupa Askara Publishing, Jakarta.
PREREQUISITES
No prior knowledge is assumed during the course and the subject
matter is presented in astimulating, logical, and practical manner.
Just show interest, eagerness to learn, andwillingness to work.
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COURSE REGISTRATION FORM
Course Name : Practical Investment Appraisal and Business
Decision Analysis inPetroleum Exploration & Production with
special reference to the
Indonesian PSC system
Dates : April 25 - 29, 2005 (five day course)
Venue : Hotel Bali Padma - Legian, Bali
Instructor : H.L. Ong, D.Sc.- Lecturer, Institute Technology
Bandung- Advisor to P.T. Geoservices
Price : US$ 1,600.00 (IPA Members)US$ 1,700.00 (Non-IPA
Members)
Includes:hotel accommodation for 6 (six) night
Attendee Name :
______________________________________________________
Company :
______________________________________________________
Phone/Facsimile :
______________________________________________________
E-mail address :
______________________________________________________
Mobile phone no. :
______________________________________________________
Contact Person :
______________________________________________________
Period stay :
______________________________________________________
Flight detail :
______________________________________________________
Payment Method : Cheque addressed to IPA Secretariat Cash
addressed to IPA Secretariat Transfer addressed to Bangkok Bank
Ltd. - Jakarta Branch
US$: 0309-100763-401RP. : 0309-100763-001
Please return this form together with payment to the:IPA
SECRETARIATWisma Kyoei Prince, 17th Floor (Suite 1701)Jln. Jendral
Sudirman Kav. 3Jakarta 10220
Phones : 572-4284, 572-4285, 572-4286Fax. : 572-4259E-mail :
[email protected] or [email protected]
