This course will give non-financial oil and gas professionals an understanding of basic principles, theory and practice of both financial reporting and analysis as they apply to the oil and gas industry. It will help participants to appreciate how decisions affect an organisation’s financial performance and covers standard financial and accounting terminology, ensuring increased confidence in future finance discussions.
Course Level: Foundation Instructor: Paul Keighley or Robert Hockley
Designed for you, if you are...
A manager or supervisor wanting to improve your understanding of financial reports and make more effective use of financial information for strategic and operational decision-making
A specialist in any discipline who has to interpret and work with financial information or has budget responsibilities
An adviser who makes recommendations based on financial data
A non-financial person at any level and in any discipline in the oil and gas industry wanting to develop a better understanding of finance and budgeting
How we build your confidence
The course will be delivered using a combination of instruction, facilitation of group discussions and the regular use of practical examples and exercises to offer you the opportunity to understand both theory and practical application of the various topics.
By the end of the course you will feel confident in your understanding of:
How to interpret, understand and act on financial information
How to develop more effective decision-making skills
Elements of financial management specific to the oil and gas industry
A conceptual understanding of key E&P accounting topics including depreciation, reserves, decommissioning, and asset impairment tests
Sources and uses of financial information - Sources of financial data - Financial information systems - Uses of financial information for decision-making
Understanding financial information - Understanding basic principles - Profit and loss account - Balance sheet - Importance of working capital and how to control it - Difference between capital expenditure and operating expenditure
Cash flow - Understanding the difference between cash flow and profit - How to control cash flow - Techniques for measuring financial performance - How to measure financial performance - How to compare the performance of different petroleum companies
Oil & gas industry accounting policies - How to account for exploration and appraisal costs - Nature and classification of reserves and the use of reserve data in E&P accounting - DD&A: the basic concepts and examples of the Unit of Production calculation - Asset impairment tests - How to account for decommissioning - Review of a sample set of E&P company published accounts
Effects of taxation - How tax effects profit and cash flow - Impact of tax on decisions
Budget preparation and control - The role of financial planning - How to prepare a budget - How to control a budget
"Great course - a must attend for all non-financial personnel to be able to excel." - Ophir Energy
"Great trainer - good presenter, fascinating content. Good example of how to make boring content very interesting and catch people’s attention. Good refresher of basic finance and accounting concepts." - GDF Suez