High-Precision Oil & Gas Services Accounting
Long-term contract records, heavy equipment mobilization, and project costing for oil & gas support services
Compliance Warning
This industry is considered high risk and may receive closer attention from tax authorities. Professional tax consultation is strongly recommended.
Common Challenges
Long-Term Contract Revenue Recognition
Drilling or seismic contracts lasting 2-5 years with milestone payments requiring progress-based revenue recognition.
Mobilization and Demobilization
Significant mobilization costs for rigs and heavy equipment with allocation between contracts and company assets.
Specialized Equipment Depreciation
Drilling equipment, wireline tools, and survey vessels have specific useful lives with different salvage values and overhaul cycles.
Our Solutions
Contract-Based Revenue Accounting
Developing percentage-of-completion revenue recognition for each contract with milestone tracking.
- Accurate per-contract revenue
- Controlled WIP
- Progress-aligned billing
Equipment Cost Allocation
Allocating ownership and operating costs of heavy equipment per project including mobilization, fuel, and maintenance.
- Clear per-project profit
- Measurable asset utilization
- Accurate contract pricing
Multi-Currency and Intercompany
Managing multi-currency transactions for international projects and intercompany reconciliation across group entities.
- Controlled exchange differences
- Accurate consolidation
- Transfer pricing compliance
Related Tax Regulations
PSAK 72
Revenue from Contracts
Revenue recognition for multi-year drilling, seismic, and engineering service contracts
PSAK 73
Leases
Accounting for heavy equipment and specialized oil & gas equipment leases as lessor and lessee
PSAK 16
Fixed Assets
Capitalization and depreciation of drilling equipment, rigs, survey vessels, and heavy oil & gas equipment
Need Help with Oil & Gas Services Accounting?
Consult your bookkeeping and tax needs with our professional team. Free initial consultation.
Free Consultation via WhatsAppOil & Gas Services Accounting Consulting Services Across Indonesia
We support clients in major Indonesian cities. Find a location-specific service page for your area.
Bali
Banten
Daerah Istimewa Yogyakarta
Jawa Tengah
Jawa Timur
Kalimantan Barat
Kalimantan Selatan
Kalimantan Timur
Kepulauan Riau
Riau
Sulawesi Selatan
Sulawesi Tengah
Sulawesi Tenggara
Sulawesi Utara
Sumatera Utara
Sumatra Selatan
Frequently Asked Questions
How to record long-term drilling service contract revenue?
Revenue is recognized using the percentage-of-completion method per PSAK 72. Progress is measured based on inputs (actual costs vs total estimated costs) or outputs (milestones achieved). Mobilization fees are generally amortized over the contract period.
Can rig mobilization costs be capitalized?
Mobilization costs meeting the definition of an asset (providing future economic benefits and reliably measurable) may be capitalized and amortized over the contract period.
How to record day rate vs lump sum contracts?
Day rate: revenue recognized based on actual operating days × daily rate. Lump sum/turnkey: revenue recognized with percentage of completion. Standby rates generally recognized when incurred.
How do accounting services improve operating cost efficiency?
Accurate, timely financial reports help you spot cost leakage, monitor margins by product or service, and make data-based decisions.
Can financial reports be accessed in real time?
Yes. We use cloud accounting systems so you can monitor cash flow, profit and loss, and business performance from anywhere.
How do you ensure reports are ready for external audits or banks?
Reports are prepared by qualified accounting professionals with clear documentation and traceable transaction data.
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