INTRODUCTION TO WORK PROGRAM & BUDGET (WP&B) AND AUTHORIZATION FOR EXPENDITURES (AFE)

DIVISI PENGENDALIAN FINANSIAL - BPMIGAS

WORK PROGRAM & BUDGET (WP&B)

PSC BUDGETING AND REPORTING OVERVIEW

PSC Contract Exh. C Financial Quarterly Report

Work Program & Budget routine Projects POD

Authorization For Expenditures (AFE)

AFE Close-out report p

Budget Schedules in WP&B

The budget schedules in Work Program And Budget (WP&B) were designed to identify and summarize the financial aspects of the annual plan.

PSC Annual Budget Preparation & Financial Reporting

Expl. Drilling BS 5 Dev. Drilling BS 6 Misc CAPEX BS 7 Prod.fac Capex BS 9 Misc.Prod.Capex BS 10 Admin.Capex BS 12

oil gas

Expl&Devt Sumry BS 4 FR 4 attchmnt

Prod. Exp Prod Exp. Summry BS 8 FR 8 attchmnt

G&A exp.summry p y BS 11 FR 11 Attchmnt

Key Ops Statstic BS 2

FR 2 Exps&Expend Smry BS 3 & 3A FR 3

Depreciation BS 14 FR 14

Cap.asset PIS BS 13

Prg. Supp list BS 15

FR 15

Prod. Lift frcast BS 16 FR 16

Bgt yrs Expdtres BS 17 May 08

Fin status rprt BS 1 FR 1

WORK PROGRAM & BUDGET vs. BPMIGAS QUARTERLY REPORT

BUDGET Schedule 1 Schedule 2 Schedule 3 Schedule 3A Schedule 4 Schedule 5 Schedule S h d l 6 Schedule 7 Schedule 8 Schedule 9 Schedule 10 Schedule 11 Schedule 12 Schedule 13 Schedule 14 Schedule 15 Schedule 16 Schedule 17 FQR Report 1 Report 2 p Report 3 Report 4 DESCRIPTION Financial Status Report Key Operating Statistics y p g Expense and Expenditures Summary Expenditures Summary Exploration and Development Expenditures Exploratory Drilling Capital & Operating Expenditure Development Drilling Capital & Operating Expenditure D l t D illi C it l O ti E dit Miscellaneous Exploratory Capital Expenditures Production Expense Summary Production Facilities Capital Expenditures Miscellaneous Facilities Capital Expenditures Administrative Expense Summary Miscellaneous Administrative Capital Expenditures Capital Assets to be Placed into Service Depreciation Schedule Detailed Project Support Listing/Project Status Report Lifting Forecast/Lifting Share Analysis Expenditures Summary by Category

Report 8

Report 11

Report 14 Report 15 Report 16

Currency y

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

Detail of Budget Schedule g

Sch. 1 :Budgeted Financial Status report To summarize the elements necessary to calculate the share of Revenue between Government and Contractor. To summarize the status of Unrecovered Other costs, and Govt Tax entitlement

Detail of Budget Schedule g

Sch. 2 :Budgeted Key Operating Statistics To obtain forecasts of key operating statistics such as Production i.e number of producing fields, fields well operating Price Cost per b o e operating, Price, b.o.e, Drillings, well completed, well successful, wildcat wells, footage drilled, seismic runs

Detail of Budget Schedule g

Sch. 3 :Expense and Expenditure Budget Summary To summarize currently recoverable budgeted expenses by quarters To summarize budgeted cap.ex for the budget year Sch. 3 A To summarize capital and non-capital expenditure by quarters

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Detail of Budget Schedule g

Sch. 4 :Exploration and Development p p Expenditure Budget Summary To summarize all budgeted expenditures related to exploration and devt activities To separate non-capital operating expenditures for cost recovery purposes

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

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Detail of Budget Schedule g

Sch. B d t d Exploratory D illi S h 5 :Budgeted E l t Drilling E Expres To summarize budgeted exploratory drilling program expenditures b f dit by functional t ti l type of f expenditures To list budgeted cap. Costs for items which will be P.I.S during the budget year. Capturing this amount will assist in the computation of depreciation

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Detail of Budget Schedule g

Sch. B d t d Developments D illi E S h 6 :Budgeted D l t Drilling Exp. To summarize budgeted development drilling program expenditures by functional type of expenditures To list budgeted cap. Costs for items which will be P.I.S during the budget year. Capturing this amount will assist in the computation of depreciation

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Detail of Budget Schedule g

Sch. 7 :Budgeted Miscellaneous Capex. To summarize budgeted miscel. capex for E&D activities which are not incl in sch 5-6 To list budgeted cap. costs for items which will be P I S during the budget year CaptP.I.S year. Capt uring this amount will assist in the computation of depreciation

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Detail of Budget Schedule g

Sch.8 :Prod. Expense Budget Summary To summarize all recoverable budgeted pro. Expenses by functional exp. category To list budgeted cap. costs for items which will b P I S d i th b d t year. ill be P.I.S during the budget Capturing this amount will assist in the computation of depreciation An tt h A attachment t S h 8 shall clarify th d t il t to Sch. h ll l if the details of each expense by showing the kinds of exp. and the sources of the services for which the expenses were incurred

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Detail of Budget Schedule g

Sch.9 Sch 9 :Budgeted Production Facilities Capex To T summarize b d t d production f i budgeted d ti facs. Programs by functional type of expendres To list budgeted cap. costs for items which will be P.I.S during the budget year. Capturing this amount will assist in the computation of depreciation p

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Detail of Budget Schedule g

Sch.10 :Budgeted Miscel. Prod. Fac. capex To summarize budgeted miscel Capex not miscel. in sch. 9 To list budgeted cap. Costs for items which will be P I S during the budget year CaptP.I.S year. uring this amount will assist in the computation of depreciation

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Detail of Budget Schedule g

Sch.11 :Admin. Expense Budget Summary To summarize all recoverable budgeted adm. exp. by functional expenditure category To list budgeted cap. costs for items which g p will be P.I.S during the budget year. Capturing this amount will assist in the computation of depreciation

Schedules .

The aim of attachment 11 mainly to monitor the kinds of support the Operator supplies and to enumerate clearly all th expenses relating t t l l ll the l ti to the obligations for improvement of the social environment

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Detail of Budget Schedule g

Sch.12 :Budgeted Admin. Capex To summarize capex budgeted for admin admin. To list budgeted cap. costs for items which will be P.I.S during the budget year. Capturing this amount will assist in the computation of depreciation

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Detail of Budget Schedule g

Sch.13 :Budgeted Capital Assets to be Placed Into S Service ( S) (PIS) To summarize capex for assets to be PIS during the budget year To monitor depreciation by type of asset

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Detail of Budget Schedule g

Sch.14 Sch 14 :Budgeted Depreciation For the Year To calculate budgeted depreciation for the year

Depreciation for the current year will be calculated in accordance with the rules presented in exhibit C

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Detail of Schedules . Budget Schedule g

Sch.15 :Detailed Program Support Listing g pp g
To provide a complete list of all programs approved by BPMIGAS, and all programs for which approval will be requested during the budget year To establish budget control over AFEs prepared during the budget d i th b d t year To list budgeted capital costs for items to be PIS during the budget year Capturing this amount year. will assist in the computation of depreciation

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Operator : Contract Area : Budget Year :

L i n e

BPMIGAS PRODUCTION SHARING CONTRACT DETAILED PROGRAM SUPPORT LISTING

Capital Portion 1) 2) 3) New Old Total 8) To be 4) Anti- Budgeted Expend. PIS Description Program Program Program cipated 7) Total 5)Current 6)Future Expd. As This Year of 31/12/ Year Year

SCHEDULE 15
Non - Capital Portion 9) AntiBudgeted Expend. cipated ) 12) Total 10)Current 11)F 10)C 11)Future Expd. As of 31/12/ Year Year

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MONITORING PROJECTS
Operator : Contract Area : Contract Area No. :
BPPKA Approval AFE AFE by Category No. 1 Letter No. 2 Date 3

BPMIGAS PRODUCTION SHARING CONTRACT PROJECT STATUS REPORT

Total Budget Actual Expenditures YTD 7 Prior Original Revised Years 4 5 6 Remaining Inception Budget to Date 8 9

Estimate Over/ Actual (Under) Amount Budget 10 11

Start Date Plan 12 Actual 13

Completion Remarks % 14 Date 15 16

REPORT 15
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Detail of Budget Schedule g

Sch.16 :Production Liftings Forecast To capture forecast production/liftings

Sch. 16.1 est oil liftings in thousands of barrels Sch 16 2 est gas liftings in millions of cubic feet 16.2 For purposes of Sch 16 preparation, the Operator may assume liftings to be equal to production One schedule should be prepared for each kind of gas Production, such as LNG and Residue Gas

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Detail of Budget Schedule g

Sch.17 :Budget Year Expenditures To T provide additional i f id ddi i l information on i capital and operating expenditure

Containing current operating expenditures and capital expenditures.

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AUTHORIZATION FOR EXPENDITURES (AFE)

AUTHORIZATION FOR EXPENDITURES (AFE) ( )

AFE system i d i t is designed t provide d to id Management i.e. BPMIGAS with information necessary to analyze, evaluate, approve, and monitor expenditure projects of the PSC

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PROJECT

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

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An activity

Is it a project ?

No

NO AFE REQUIRED

Yes AFE REQUIRED MAIN PROJECTS OTHER PROJECTS - Exploration Surveys e.g. Technical Services - Drilling & Workover First Office Rent - Capital Assets Recreational Facilities
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Two type of Projects using AFE system yp j g y

Main Project : Exploration, surveys, Drilling and work over Projects, Capital Assets Projects j , p j dedicated to expl. and prod. activities, Platform certification Certain Other Projects: (supporting activity such as computerization, rent office, Technical Services) with estimated expenditures of US$ 500 000 or more ith ti t d dit f 500,000

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VARIANCES
When budget of a project is revised a new WP&B revised, prepared to established a revised budget Seek approval from BPMIGAS when est. total cost of the project is expected to vary over 10% from the original estimate on the overall project or 30% on any one cost category Close out report (completion report) submitted within p ( p p ) 4 months after the corresponding projects are completed When actual amount varies 10% or more over the budget of a project, the Operator has to attach explanation in detail and has to seek for BPMIGAS confirmation of the variance

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AFE SCHEDULES

AFE non Capital : Sch. 18 A : Airborne Survey Sch. 18 B : Land Survey Sch. 18 C : Marine Survey Sch. 18 D : Data Processing Sch. 18 E : Exploration and Exploitation study p p y

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AFE SCHEDULES

AFE Capital/ non Capital : Sch. 19 : Drilling well/ workover Sch. Sch 20 : Drilling/ work over material list (att. To Sch. 19) Sch. 25 : Platform certifications Sch. Sch 26 : Certain other Project

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AFE SCHEDULES

AFE Capital : Sch. 21 : Offshore Platform Facilities Sch. Sch 22 : Other Offshore Facilities Sch. 23 : Onshore Facilities Sch. 24 : Component List Facilities ( attach to Sch. 21 or 22 or 23)

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AUTHORIZATION FOR EXPENDITURES (AFE) SCHEDULE ILLUSTRATION

AFE 18A - AIRBORNE SURVEY AFE 18B - LAND SURVEY AFE 18D - DATA PROCESSING AFE 18C - MARINE SURVEY AFE 18E - EXPLORATION & EXPLOITATION SURVEY AFE 19 - DRILLING & WORKOVER AFE 21 - OFFSHORE PLATFORM FACILITIES AFE 22 - OTHER OFFSHORE FACILITIES AFE 23 - ONSHORE FACILITIES AFE 25 - PLATFORM CERTIFICATION AFE 26 - CERTAIN OTHER PROJECTS
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AFE 20 - DRILLING & 0 G WORKOVER MATERIAL LIST

AFE 24 - FACILITIES COMPONENT LIST

BPMIGAS PRODUCTION SHARING CONTRACTS AUTHORIZATION FOR EXPENDITURES

Operator : Contract Area : Contract Area No.:

L i n e Original Budget

Survey Type : Program Name : Project Name :

Revised Budget Actual Expenditures Prior Year Current Year TOTAL

Schedule No. ____ No AFE No. : Start Date : Completion Date : Close Out Date : Close-Out
Actual Over/(Under) Budget Percentage Over/(Under) Budget

Description

Time Phased Expenditures - This Year - Future Years Operator: BPMIGAS: Approved by _____ Position _____ Date ___ Approved by _____ Position ___ Date___ Approved by _____ Position _____ Date ___
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SCHEDULE 19 - DRILLING AND WORKOVER

1. TANGIBLE COSTS Casing, Casing Accessories, Tubing, Well Equipment - surface/subsurface 2. INTANGIBLE COSTS Preparation & Termination - Survey - Location Staking/Positioning - Wellsite and Access Road - Service Line & Communication - Water System - Rigging up / Rigging down Drilling & Workover Operation - Contract Rig - Drilling Rig Crew - Mud, Chemical & Engineering Svc. - Bit, Reamer & Core head i C h d - Equipment Rent - Directional Drilling & Surveys - Diving Services - C i Installation Casing I ll i - Cement, Cementing & Pump Fees Formation Evaluation - Water - Mud Logging Services - Drill stem Tests - Open Hole Electrical Logging Services Completion - Insurance - Casing Liner & Tubing Installation , g p - Cement, Cementing & Pump Fees - Cased Hole Electrical Logging Services - Perforating & Wireline Services - Stimulation Treatment - Production Tests General - Supervision - Insurance - Permits & Fees - M i Rental & Charters Marine R l Ch - Helicopter Aviation & Charges - Land Transportation - Fuel & Lubricants - Camp Facilities - Allocated Overhead - Technical Services from Abroad
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BPMIGAS SCHEDULE NO.19 PRODUCTION SHARING CONTRACTS AUTHORIZATION FOR EXPENDITURES - DRILLING AND WORKOVER Project Type : Drilling/Workover Well Name : AFE No. : Operator : Well Type : Expl/Del/Dev. Date : Platform/tripod : Contract Area : Field/Structure: Contract Area No.: Basin : : ________ Surface Coord. : Lat ______ Long :_____ : ________ ft Elevation : ______ ft Contractor : _____ Program Actual Program Actual : ____________ Spud Date p ____________ Rig Days : _____ ______ Completion Date : ____________ ____________ Total Depth : _____ ______ Placed into Service : ____________ ____________ Well Cost/foot $/ft : _____ ______ : ____________ Drilling Days ____________ Well Cost/Day $/d : _____ Close-Out Date Completion Type : single/dual/triple ______ ____ Revised Budget A i d d Actual Expenditures l di L Original Actual Percentage i Over/(Under) Over/(Under) Description Budget Prior Current n TOTAL Budget Budget Location Water Depth

Year

Year

Time Phased Expenditures - This Year - Future Years Operator: Pertamina MPS: Approved by _____ Position _____ Date ___ Approved by _____ Position ___ Date___ Approved by _____ Position _____ Date ___

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PERTAMINA / MPS PRODUCTION SHARING CONTRACTS AUTHORIZATION FOR EXPENDITURES - DRILLING AND WORKOVER Project Type : Drilling/Workover : Expl/Del/Dev. Well Type Operator : Field/Structure: Contract Area : Well Name : Contract Area No.:

SCHEDULE NO.20 ATTACHMENT TO SCH. NO.19 AFE NO. : DATE :

Actual L BUDGET ACTUAL Over/(Under) Surplus Materials Unit of i Description Issue Issued from Stock New Purchases Grand Total n e QTY U.P Total QTY U.P TotalQTY AMT QTY U.P Total QTY AMT QTY Disposition UP U P TotalQTY UP

Operator: pp y Approved by _____ Position _____ Date ___ Date______ Approved by _____ Position _____ Date ___

BPMIGAS: Approved by _____ Position ______ pp y

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AFE FOR FACILITIES

SCHEDULE NO. 21 OFFSHORE PLATFORM FACILITIES - Jacket - Deck - Production Process Facilities - General Support SCHEDULE NO. 22 OTHER OFFSHORE FACILITIES - Sub Marine Pipeline - Field Production Junction Facilities - Other -G General Support lS t SCHEDULE NO. 23 ONSHORE FACILITIES - Civil Construction - Building - Oil / Gas Production Facilities - Utilities Facilities - Trunk Line - Other - General Support

Detailed Items

SCHEDULE NO. 24 COMPONENT LIST ORIGINAL BUDGET REVISED BUDGET ACTUAL y Quantity Material Other Total Costs Costs Costs
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SCHEDULE NO. 21 - OFFSHORE PLATFORM FACILITIES

JACKET / DECK / PRODUCTION PROCESS FACILITIES Design Engineering (Local & Abroad) Materials 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 by Contractor : conducted b Engineering, Fabrication, Installation & Transportation
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SCHEDULE NO. 22 - OTHER OFFSHORE FACILITIES

SUB-MARINE PIPELINE / FIELD PROD. JUNCTION FACILITIES Engineering (Local & Abroad) Materials S Surveying i Installation Transportation OTHER FACILITIES Engineering (Local & Abroad) Materials Fabrication (Onshore & Offshore) ( ) Surveying Installation (Onshore & Offshore) Transportation GENERAL SUPPORT Supervision Insurance Permits & Fees Transportation Overhead (Field, Jakarta & Office)

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SCHEDULE NO. 23 - ONSHORE FACILITIES

CIVIL CONSTRUCTION Surveying Engineering (Local & Abroad) Site Preparation Construction BUILDING Engineering (Local & Abroad) Materials Construction Transportation OIL/GAS PROD. FACILITIES / UTILITIES / TRUNK LINE Engineering (Local & Abroad) Materials Construction Transportation a spo tat o OTHER Engineering (Local & Abroad) Materials Installation Transportation GENERAL SUPPORT Supervision Insurance Permits & Fees Transportation Overhead (Field, Jakarta & Office)

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SCHEDULE NO. 24 - COMPONENT LIST - FACILITIES Supporting each component facility of Schedule 21, 22 & 21 23. Component Costs includes materials (ex stock or new purchase) and installation The new purchase should consider the available stock of p consumable materials since they have been charged to Operating Costs. Included in material/component costs are installation, insurance, freight, handling and other cost for delivery to warehouse. Other Costs : e.g. engineering, fabrication, installation, etc.

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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

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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 more. US$500 000 more Examples of Other Projects : Office Rental (First Activity - Package) Computerization Environmental Activities Construction Housing & Welfare g Overhaul & Major Repair

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Terima Kasih

DIVISI PENGENDALIAN FINANSIAL - BPMIGAS

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