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Exploration & Production Accounting - Level 2 (FIN02)

  • 4-8 November 20195 daysVienna, AustriaCourse Fee: 3150 EUR + VAT

Description

Finance professionals working in the oil & gas industry account for billions of dollars each year and the finance department outputs attract a great deal of attention and interest. By referring to industry best practise and related financial reporting standards this course will provide in-depth knowledge and understanding of E&P accounting policies, joint venture accounting, production sharing contracts along with budgeting and cost control.
The extensive use of industry specific examples and exercises will re-enforce the key learning points and with improved knowledge and confidence, participants will be well placed to add value when back in the workplace.

Course Level: Skill

Designed for you, if you are...

  • Working in finance and have a good foundation knowledge in exploration and production accounting

We recommend that in order to derive maximum benefit from this course you should first attend the predecessor Level 1 course.

How we build your confidence

The course is delivered as a combination of instruction, facilitation of group discussions, and use of practical examples and exercises to enable you to understand both the theory and the practical application of the topics.

The benefits from attending

By the end of the course you will feel confident in your understanding of:

  • The knowledge of financial accounting and reporting issues unique to the exploration & production industry
  • Accounting requirements resulting from joint ventures (JV)
  • Production sharing accounting
  • Financial planning and budgeting

Topics

Financial Accounting
This section of the course aims to enhance your knowledge of financial accounting and reporting issues unique to the E&P industry. Particular emphasis is placed on achieving a thorough understanding of industry-specific accounting issues and relevant Accounting Standards. Comparisons are made between International and US standards, and with widely adopted practices in other countries. You will analyse examples from E&P company accounts and see the impact of adopting different accounting policies.
  • Regulation of oil & gas company accounting
  • Accounting for pre-development costs
  • Commercial reserves
  • The DD&A calculation
  • Impairment
  • Accounting for decommissioning
  • Accounting disclosures
  • Accounting for financing arrangements
  • Accounting for sales revenue
  • Accounting for E&P company taxes

Joint Venture & Production Sharing Accounting
This section of the course aims to enhance your knowledge of joint venture and production sharing accounting issues. Particular emphasis will be placed on understanding the accounting requirements resulting from joint venture (JV) and production sharing contracts (PSC). Reference will be made to sample JV and production sharing contracts from different countries and to attempts in the industry to standardise accounting practice, e.g. COPAS, SOAP. You will be encouraged to challenge traditional methodology in order to develop models of good practice that you can apply back in the workplace.
  • State frameworks for the control and exploitation of petroleum reserves
  • Joint ventures
  • JV cash management
  • Unitisation and redetermination
  • JV billing arrangements
  • JV cost allocation
  • Production sharing contracts
  • Accounting for PSCs

Budgeting & Cost Control
The final section of the course concentrates on budgeting and cost control and aims to improve your ability to prepare and review company-wide E&P budgets and to control and analyse the costs incurred within an E&P company. Particular emphasis is placed on understanding the nature of costs unique to an E&P company and how these costs behave under different conditions. Realistic examples are provided to encourage you to develop a model of good budgeting and cost control practice that can be applied back in the workplace. The E&P Budgeting section incorporates an exercise where you are the Finance Director, participating as part of the Senior Management Team, in a review of the first draft of the Annual Budget for next year.
  • Performance measurement
  • Cost control
  • Budget review
  • Financial and strategic planning

Customer Feedback

"Instructor was very good - above average, with great energy to present all relevant info." - Deputy GM at NIS

"I had joined the oil and gas industry and this course helped me to see my challenge as a great opportunity. Level 2 has brought to light new concepts and different ways of interpreting my company’s commitments. Thanks to the knowledge shared I will certainly be a better professional, not only technically but now as an enthusiastic employee." - BG Group

"I have been auditing O&G companies for the last 13 years but never quite understood certain difficult terminologies and calculations. The training course covered these all and I really appreciate it." - KPMG


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