Course Description
A 5 day introduction to the accounting principles & practices specific to the international oil & gas industry. Course participants will gain an insight into the key accounting issues confronting the industry & best practice reporting for internal & external payments.
What Do Participants Learn?
- Review the overall petroleum value chain and an oil and gas project value chain
- Gain an awareness of the key accounting issues confronting oil and gas companies
- Develop a detailed understanding of the key accounting principles specific to the oil and gas industry
- Review cost allocation methodologies for exploration, development and production activity
- Gain an insight into accounting for oil and gas revenue
- Differentiate between the various agreements used in the oil and gas industry (JOA, PSC etc.) and their specific accounting treatment
- Understand the role of the petroleum accountant in corporate governance
- Develop perspectives on the information needs of various stakeholders (internal and external)
Who Should Attend?
- Finance personnel new to the oil and gas industry who need to understand the specialist disciplines that comprise and oil and gas company finance function
- Finance personnel who are looking at joint venture, production, cost and revenue accounting, operational budgeting, capital budgeting, activity based costing and standard costing
- Audit staff
- Treasury and tax specialists who want a broader understanding of the accounting issues in oil and gas
What Will the Learning Experience Include?
Phase: 1
Introduce
- Comprehensive pre-program activities include:
- Web-based information forms & surveys completed by attendee.
- Direct consultation with the attendee about the expectations.
- During the training, participants engage in data, activities, and conversations that lead to insight and knowledge.
- Participants learn from expert trainers who have both academic and business experiences.
- Highly applicable training content & instructive activities for adding depth to training topics.
- **A half-day site visit for integrating the experience & plan next steps. Opportunities to provide connections, ideas & support.
Phase: 2
Explore & Practice
Phase: 3
Apply
- Apply & sustain the learning experience by using this ongoing support:
- To ensure participant has new skills or behavior progress.
- Optional, fee-based mentoring & coaching with the trainer.
- Training materials & additional documents (e-books, pdf files, presentations and articles)
- Evaluate your training experience by giving us feedbacks and help us to reach our organizational goals.
- Participant's Evaluation
- Trainer's Evaluation
Phase: 4
EVALUATE
Understanding the oil and gas value chain
- Upstream
- Midstream
- Downstream
- Commercial aspects such as resources and reserves
Value chain works from a project perspective
- Concept
- Pre-feasibility
- Feasibility
- FEED
- FID
Detailed project considerations
- Breakdown of project costs
- The importance of allocating costs
- Costs control from a project accountant’s perspective
- Industry and project risks and uncertainty such as environmental and JVs
- How financial decisions are made on projects
- Approvals
- Contractual agreements and transactions
Corporate governance, boards, shareholders, risks and reporting
- KPIs and the responsibilities of the management team and the board
- Corporate governance - the concept
- Role of finance in corporate governance
- Importance of accurate cost allocation
- Financial reporting
Gaining insight into management decision making
- Company strategy and risks
- Governance mechanisms
- Practical examples on two different oil and gas companies
- Financial reporting principles
- Commercial reserves
Petroleum industry agreements and contracts
- Contracts typically used in oil and gas
- Production Sharing Contracts (PSC)
- Joint Operating Agreements (JOA)
- Joint Sales Agreements (JSA)
- Cost accounting
- Revenue accounting
- Depreciation
- Depletion
- Amortisation
- Cash calling
- Impairment testing
- Accounting for decommissioning