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