22 - 26 Jun 2025
Cairo (Egypt)
Hotel : Holiday Inn & Suites Cairo Maadi, an IHG Hotel
Cost : 3900 € Euro
This program will provide you with a solid foundation in the financial aspects of oil and gas exploration and production (E&P). It will have immediate and practical application back at your workplace since all activities have financial implications for the assets, departments and ultimately the company for which you conduct your specialist activities. This five-day program has been designed specifically for non-finance specialists in the oil and gas industries who need to understand the financial implications of the work they do. You will learn how to:
Understand how your activities and decisions are reflected in your company’s reporting to shareholders and other stakeholders
Find out what happens to financial and economic data that is provided by you and your departmental colleagues
Raise your level of confidence in working with financial information and interactions with commercial colleagues
Prepare yourself for increased responsibility and a more strategic role in the management of your company
appreciate the financial impact of your day-to-day decisions and actions
work more confidently and effectively with colleagues on financial matters
improve the quality of information you receive from and provide to Finance
increase the success rate of requests for authorization of expenditure and make more effective use of funds allocated
use departmental budgets and monthly management reports to help you exercise financial control of your area of operations
understand the financial information disclosed in your company’s annual report and accounts
Learning throughout the program will be reinforced by case studies, worked examples, and illustrative extracts from oil and gas company annual reports
The program uses training methods chosen to ensure effective learning, to reinforce understanding, to develop practical skills and to promote the critical evaluation of information. Interest is maintained throughout each session using a variety of formats, including:
lively illustrated presentations on the industry context and the accounting, reporting and measurement issues
worked examples, exercises, and solutions demonstrating the practical application of each topic
illustrative extracts from the annual reports of international companies
opportunities for questions and discussion on relevant issues raised by participants
The program begins with a review of the business environment and an overview of E&P activities. The rest of Day 1 is devoted to understanding the economic analysis used in making E&P project decisions.
Day 2 covers the essentials of accounting and financial reporting, including the components of a balance sheet, the measurement of profit and the distinction between capital and operating expenditures. With this foundation, the rest of Day 2 and Day 3 examine the accounting and reporting treatment of exploration, development and production costs, including the treatment of dry wells, depreciation, tests for impairment of assets and provision for removal and restoration costs (decommissioning).
Day 4 deals with the financial implications of arrangements used to manage the high risks and costs that are characteristic of the E&P industry - joint ventures, farm-outs, carried interests, production sharing contracts and long-term gas contracts.
Day 5 applies the financial accounting and reporting knowledge gained on the program to the analysis of financial statements, providing an essential framework for assessing the performance of your company and its competitors and for making effective use of the budgets and management reports with which the program concludes.
Day 1:
The E&P Business and Project Economics
The Business Environment
Business objectives
Stakeholders
Corporate governance
The E&P Business
Risk and reward
Commercial arrangements
The field life cycle
Project Economics
Project cash flows
The time value of money
Discounting and the cost of capital
Project economic models
Decision criteria
Day 2:
Accounting, Exploration and Development Costs
The Accounting System
Capturing and recording data
Cash and accruals
The balance sheet
The income statement and profit measurement
Accounting principles and standards
Capital and Operating Expenditure
Matching costs and benefits
Assets and expenses
Exploration and Appraisal Costs
Full cost and successful efforts
Intangible assets
Development costs
Commitments
Tangible assets
Day 3:
Reserves, Production, and Cost of Sales
Reserves of Oil & Gas
Classification of reserves
Reserve quantity disclosures
Production Costs
Lifting costs
Maintenance costs
Royalties
Depreciation, Depletion, and Amortisation (DD&A)
Unit of Production (UOP) method
Changes in costs and reserves
Ceiling or Impairment Tests
Test requirement and process
Accounting for test results
Decommissioning, Removal, and Restoration
Obligations to remove and restore
Reporting of decommissioning liabilities and costs
Day 4:
Risk and Cost-Sharing Arrangements
Joint Ventures
Cash calls
Billing statements
Entitlements and liftings
Transfers of interests or risks
Farm outs
Carried interests
Production sharing contracts
Cash flow implications
Reserve implications
Long-term gas contracts
Pricing mechanisms
Take or pay
Day 5:
Financial Analysis, Budgets, and Management Reports
Analysis of Financial statements
Profitability, liquidity, and solvency
Investment measures
Budgets
Authorization of expenditure
The budget process
Management reports
Responsibility reporting
Analysis of variances