Exploring & Producing oil and gas is challenging and involves a range of complex activities and very large sums of money. Accounting for those activities is equally challenging and this introductory level course will offer a comprehensive overview of commonly applied international approaches to the accurate recording and reporting of the financial consequences of E&P activity.
Course Level: Foundation
Designed for you, if you are...
A member of finance staff new to the industry requiring a grounding in the various specialist discipline areas which typically comprise an oil and gas company finance function
Working in the finance department and being developed for broader accounting and financial management responsibilities
Involved with audit and information systems and have frequent dealings with financial controls and systems
A treasury and tax specialist who requires a better understanding of E&P finance and accounting
How we build your confidence
The course uses a combination of instruction, group discussions, practical examples and exercises to ensure you absorb both the theory and the practical application of the topics.
By the end of the course you will feel confident in your understanding of:
An overview of accounting policies and practices in the oil and gas industry
Basic cost control and the management of project, drilling and operating costs
The accounting and financial management implications of exploring for and producing oil and gas
The background to financial issues like joint ventures that are unique to the E&P industry, and their accounting treatment
Introduction to the E&P industry - Learn what is different about the exploration and production industry and the impact this has on accounting and financial management
Accounting policies - How accounting policies influence the reporting of financial performance - Successful efforts and full-cost accounting - The use of reserve data in accounting calculations - How to calculate depreciation, depletion and amortisation (DD&A) - How to conduct an impairment test or ceiling test - How to account for decommissioning costs
Joint-venture accounting - Understanding a joint-venture (JV) agreement - What a JV agreement states about accounting - How to prepare and process a cash call - Understanding JV billings - how to process a JV billing statement - How to allocate JV costs
Cost control and analysis - Project and development costs - How to estimate and control production operating costs - Drilling costs