Introduction

This training program is designed and developed by Global Horizon Training Center to provide participants with comprehensive knowledge and practical expertise in financial accounting, reporting, and business support functions within the oil and gas industry. The course addresses the unique challenges of the sector, including exploration and production accounting, compliance with international financial reporting standards, cost management, and strategic financial support to operations. Participants will gain insights into how financial data drives business decisions in an environment characterized by volatility, regulatory requirements, and global competition.

Objectives

By the end of this training, participants will be able to:

• Understand the principles and practices of financial accounting in the oil and gas sector.

• Apply IFRS and other regulatory requirements specific to oil and gas operations.

• Prepare, analyze, and interpret financial statements for oil & gas companies.

• Manage costs, revenues, and investment decisions in upstream, midstream, and downstream activities.

• Provide strategic business support through accurate financial analysis and reporting.

Target Audience

• Financial and Management Accountants in oil & gas companies.

• Finance Managers, Controllers, and Analysts.

• Auditors and Compliance Officers.

• Business Support and Planning Professionals in the energy sector.

• Professionals seeking to enhance their understanding of oil & gas accounting and reporting practices.

Course Methodology

This program is highly interactive, combining:

• Expert-Led Lectures with real-life industry examples.

• Case Studies from leading global oil and gas companies.

• Hands-On Exercises in financial statement preparation and cost analysis.

• Workshops & Group Discussions to share insights and best practices.

Organizational Impact

Organizations will benefit from this program by:

• Ensuring accurate and compliant financial reporting.

• Improving cost management and investment decision-making.

• Strengthening financial planning and business support capabilities.

• Enhancing the overall financial performance and accountability of their oil and gas operations.

Outline

Day 1: Fundamentals of Oil & Gas Financial Accounting

• Overview of the oil & gas value chain (upstream, midstream, downstream).

• Key financial drivers: exploration, development, production, refining.

• Accounting methods: successful efforts vs. full cost methods.

• Capitalization of exploration costs and asset retirement obligations.

• Exercise: Setting up accounts for an oil & gas project.

Day 2: International Financial Reporting Standards (IFRS) for Oil & Gas

• IFRS standards applicable to oil & gas (IFRS 6, IFRS 11, IFRS 16, IAS 36, IAS 37).

• Revenue recognition under IFRS 15.

• Impairment testing and decommissioning provisions.

• Lease accounting and joint arrangements.

• Case Study: IFRS-compliant reporting for an upstream operator.

Day 3: Financial Reporting & Analysis

• Preparation of complete financial statements for oil & gas entities.

• Consolidation of joint ventures and subsidiaries.

• Key financial ratios and industry-specific performance metrics.

• Managing foreign currency exposure and commodity price volatility.

• Workshop: Drafting a financial report for an integrated oil & gas company.

Day 4: Cost Management & Business Support

• Cost allocation in exploration, production, and refining operations.

• Budgeting and forecasting in volatile markets.

• Decision-support tools: NPV, IRR, breakeven analysis.

• Using financial data to support operational and strategic decisions.

• Exercise: Preparing a budget and investment analysis for a drilling project.

Day 5: Regulatory Compliance, Risk Management & Strategic Insights

• Global regulatory frameworks (SEC, OPEC, host-country requirements).

• Oil & gas taxation: royalties, production sharing, and transfer pricing.

• Financial risk management in the industry.

• Strategic financial planning and value creation.

• Final Case Study: Developing a financial strategy for a new oil field.