This article only cover OPEX and CAPEX for hydrocarbon platform to terminal or point of sale / transfer of custody and risk.
- The cost structure for all pipeline OPEX shall be distributed & allocated all stakeholder on no gain/loss principle.
- Basis for OPEX allocation will be based on pipeline (PL) length & gross production.
- OPEX allocation shall include riser maintenance cost for which these platform pass thru to terminal.
- Gross production shall be based on actual volume of natural gas, condensate & crude oil based on allocation (Metering, Testing, allocation & Balancing)
Basis & Assumptions:
- Upfront CAPEX Sharing Basis:
- Long Term Production Forecast (LTPF) based on latest approved WP&B (Work Program & Budget) in the year the construction of the said facilities commenced.
- The LTPF is based on Production Sharing Contract or field life whichever is earlier.
- CAPEX Sharing treatment for New User:
- Upfront CAPEX sharing will be re-calculated based on LTPF from the latest approved WP&B of the existing PSCs plus the new PSC. The LTPF figures for the existing PSCs shall be kept hold (as it hold).
- The LTPF is based on PSC or Field Life whichever earlier.
- Accounting treatment of item (2)
- Adjusted amount of CAPEX of the existing PSCs will be credited against their respective expenditure.
- Adjusted amount for adjustment of CAPEX of the new PSC will be debited against its respective expenditure.
- Threshold amount for adjustment of upfront CAPEX usually are limited based on the common facility usage agreement.
- Outstanding CAPEX Fee (Historical)
- New operator shall continue pursuing the historical CAPEX claim from the users.
C : Adjustment of Initial Funding = New CAPEX Payable – CAPEX Payable Previously