Oil and Gas Accounting and Performance Measurement

Overview:

Introduction:

This program develops an essential understanding of Oil & Gas Exploration & Production (E&P) accounting, reporting, and performance measurement issues and practices. It develops your ability to prepare, use, and critically evaluate information on E&P activities, applying specialist industry knowledge and relevant analytical skills.

Program Objectives:

At the end of this program, participants will be able to:

• Develop an understanding of the accounting standards, policies, and practices used by companies in the Oil & Gas Exploration & Production industry.

• Appreciate the nature and financial implications of Production Sharing Contracts and other agreements between host governments and international companies.

• Examine issues and guidelines in accounting for Joint Ventures.

• Identify and know how to apply international and national accounting standards most relevant to the E&P industry.

• Improve the relevance and reliability of financial reports to better meet the needs of users.

• Review and use publicly available information for benchmarking the business performance of companies in the E&P industry.

Targeted Audience:

• Corporate Accountants, Financial Controllers, Treasury Officers, Management Accountants.

• Finance Staff in General Accounting, Payables, Receivables, Inventory, Fixed Assets.

• Joint Venture Accountants and Auditors.

• External, Financial and Internal Auditors.

• Government Regulators and Auditors.

• Financial and Investment Analysts.

Program Outlines:

Unit 1:

Standards of Financial Reporting in the O&G Industry to Stakeholders:

• Investor reporting.

• New investors.

• Taxation and royalties.

• Stock market intermediaries.

Unit 2:

The Convergence of GAAP and IFRS:

• Effect on reporting.

• Migration paths.

• Effect on PSC reporting.

• Share pricing and O&G companies.

Unit 3:

Capitalization and Cash Flows in The Oil & Gas Industry - Sourcing Capital:

• Capitalizing E&P projects.

• Effects of IFRS.

• Capital maintenance.

• Sources of capital.

Unit 4:

Oil & Gas Value Chain and Accounting Issues:

• E&P Exploration & evaluation, borrowing costs, and development expenditures.

• P&S Reserves and resources.

• Product valuation issues, impairment of assets, disclosures, decommissioning.

• Royalties and income taxes.

• Emission trading schemes.

Unit 5:

Company Accounts, PSA’s and Joint Ventures Accounting for Multiple Efforts:

• Joint ventures – GAAP & IFRS.

• Business combinations.

• Currency issues.

• Accounting treatments.

Unit 6:

Analysis of Financial Statements:

• Analytical tools.

• Full cost.

• Successful efforts.

• Decommissioning obligations.

Unit 7:

Auditors and Reporting to Investors in The Oil and Gas Industry - External Audit Investigations and Reports:

• The auditor’s ‘Opinion'.

• True and Fair.

• Sarbanes Oxley.

• Internal audits.

Unit 8:

Ethical Issues:

• Corporate governance.

• Government regulation.

• Investor confidence and share prices.

• Creative accounting and investor protection.

Unit 9:

Investment Finance in The Oil and Gas Industry - Processes and Lead Times:

• Sources of external finance.

• Financial markets.

• Investment criteria.

• Roles of intermediaries in the financial markets.

Unit 10:

Shell and BP – Performance and Share Prices:

• Analysis of Shell Oil and BP Accounts.

• DuPont hierarchy of ratios.

• Theoretical conclusions and live feeds from London Stock Exchange.

• Influencing factors.