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Oil and Gas Accounting and Performance Measurement



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.

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