Training on Revenue Sharing Calculation and EITI at Subnational Level

December 7, 2011

Training Perhitungan DBH Migas dan EITIThe Members of PWYP-Indonesia, PATTIRO and LPAW Blora, with the support of Revenue Watch Institute (RWI) held a trainings on extractive industries oil and gas revenue sharing (DBH=dana bagi hasil) calculations and projections. PATTIRO and LPAW are the member of PWYP-Indonesia. The one day training aims to provide better understanding on revenue streams (flow of revenue), calculation flow and projections of revenue both from the company to the central government and from central government to local government as well. The training that facilitated by Maryati Abdullah (Civil Society’s Representatives on Multistakeholder Groups of EITI Indonesia) provides a basic understanding of the calculation flow and critical variables involved in the calculation of oil and gas revenues, such as lifting, First Trance Petroleum (FTP), Cost Recovery, Entitlement, DMO, oil and gas tax, over/under lifting, signature bonuses, production bonuses and other aspects of oil and gas revenue sharing.

Training held on 8 November 2011 was attended by Members of Blora Transparency Team, Local Government officials, representatives of enterprises, legislators and Civil Society Organizations (CSOs) from Blora district. During the training was discussed the EITI report templates/formats for oil and gas in sub-national level are planned to be implemented in the second round of EITI Indonesia reports. Mr. Triyanto, one participant from the Office of Revenue, Finance and Asset Management District (DPPKAD) of Blora said “I think, the training like this is very important. Since I have been following the DBH reconciliation forum in the central government, the calculations seemly very simple, but after join this training, I feel more confidence for asking to central government about the calculation and formulation of Revenue from oil and gas that shared by central government to local”

The training ended with The following actions of Transparency Team to make projections of Oil and Gas revenue sharing for Blora District from DBH (Oil and gas revenue sharing from central government) and sharing of dividen from participating interest (PI) of local government in Cepu Block. Blora is one of the district that covered by CEPU Block area-where Mobile Cepu Limited /MCL (subsidiary of Exxon Mobil) have been operating in there as contractor on PSC (Production Sharing Contract) scheme.

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