Accounting & Bookkeeping ยท KBLI 05200

Global-Standard Oil & Gas Accounting

Accurate PSC cost recovery, lifting accounting, and joint operation reporting

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What usually goes wrong

  • 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.

What we do

  1. 01

    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
  2. 02

    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
  3. 03

    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 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

If the tax office starts asking questions

The team that keeps your books and files your taxes also stays with you through an SP2DK, an audit, an objection and an appeal.

How we handle tax disputes

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 with clear documentation and traceable transaction data.

Related Industries

Tell us about your business

Send your line of business, rough annual turnover, and what is going wrong. We reply on WhatsApp.

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