Global-Standard Oil & Gas Accounting
Accurate PSC cost recovery, lifting accounting, and joint operation reporting
Compliance Warning
This industry is considered high risk and may receive closer attention from tax authorities. Professional tax consultation is strongly recommended.
Common Challenges
Cost Recovery and SKK Migas Audit
Recoverable operating costs must meet SKK Migas guidelines and be recorded according to approved AFE categories.
Lifting and Entitlement Accounting
Production entitlement recording for government and contractor must be accurate according to PSC split and accounting for DMO.
Joint Operation Accounting
PSCs typically involve multiple contractors with cash call and joint billing systems that must be reconciled.
Our Solutions
PSC Accounting System Setup
Developing chart of accounts compliant with SKK Migas guidelines with separation between recoverable and non-recoverable costs.
- Smooth SKK Migas audit
- Optimal cost recovery
- No disputed costs
Lifting & Revenue Reconciliation
Monthly lifting reconciliation between SKK Migas, operator, and contractor data to ensure production entitlements are correctly recorded.
- Accurate revenue recognition
- Correct entitlement split
- Timely reporting
Joint Venture Accounting
Joint account management with cash call, joint billing statement, and cost allocation per participating interest.
- Efficient cash calls
- Fair cost allocation
- Inter-partner reconciliation
Related Tax Regulations
PSAK 64
Mining Activities
Accounting standard for upstream oil and gas: exploration, development, and production
PSAK 57
Provisions and Contingent Liabilities
Recognition of offshore platform decommissioning and mine area restoration obligations (ARO)
PSAK 73
Leases
Accounting for rig, FPSO, and drilling equipment leases under the right-of-use asset model
Need Help with Oil Mining Accounting?
Consult your bookkeeping and tax needs with our professional team. Free initial consultation.
Free Consultation via WhatsAppOil Mining 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
What is cost recovery in oil & gas PSC?
Cost recovery is the mechanism for reimbursing contractor operating costs from production proceeds before splitting between government and contractor. Recoverable costs must meet SKK Migas guidelines, including exploration, development, production, and administrative costs according to approved AFEs.
How is lifting accounting handled in production sharing contracts?
Lifting is recorded based on each contractor's participating interest percentage. Entitlement is calculated from gross production minus FTP and cost recovery, then split according to equity split. DMO (Domestic Market Obligation) of 25% of contractor share must also be accounted for.
Does a joint operation need its own financial statements?
A PSC joint operation is not a legal entity so it does not need separate financial statements, but must prepare monthly Joint Account Statements (JAS) and FQR (Financial Quarterly Report) to SKK Migas. Each contractor records its share in its own financial statements.
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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KBLI 06100
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Oil Mining Tax
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