Oil & Gas Accounting & Performance Measurement

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.

The program is designed specifically for those who have a basic understanding of accounting but who need to understand more about accounting and financial reporting policies and practices in the upstream oil and gas industry.

Topics covered include the successful efforts and full cost methods of accounting, the classification of assets as tangible or intangible, the unit of production method for depreciation of capitalized costs, the testing for impairment of oil and gas assets, and accounting for removal and restoration of oil and gas facilities

Targeted Groups:

Corporate Accountants, Financial Controllers, Treasury Officers, Management Accountants
Finance Staff in General Accounting, Payables, Receivables, Inventory, Fixed Assets, etc.
Joint Venture Accountants and Auditors
External, Financial and Internal Auditors
Government Regulators and Auditors
Financial and Investment Analysts

Conference Objectives:

At the end of this conference the 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 Competencies:

The current and future challenges within the sector
The advanced strategic decisions facing companies given the challenging environment & the techniques to make strategic decisions
Financing strategies – the optimum capital structure & capital investment appraisal techniques aimed at maximizing shareholder wealth
Strategies to reduce and/or eliminate financial risk
An analysis of the performance of leading international Oil & Gas companies

Conference Content:
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

Conferences