26 May - 6 Jun 2025
London (UK)
Hotel : Landmark Office Space - Oxford Street
Cost : 8400 € Euro
This course provides participants with a thorough, in-depth review and examination of international accounting standards and their application in the upstream oil and gas industry. This will include a review of unique accounting issues that arise in exploration and production activities and best practices for accounting for these.
Participants will learn about Production Sharing Contracts (PSCs), the different aspects that are included in PSCs, and the accounting consequences that can arise. This course will address joint venture accounting and alternative methods of how joint ventures can be funded. Unitization and redetermination of oil and gas fields will also be covered.
The final part of this course will give participants an awareness of the different approaches that can be used in the preparation of an annual department and corporate budget. The strategic issues that companies consider in planning their future growth and development will also be discussed.
This initial segment of the course will enhance your knowledge of the financial accounting and reporting issues that are unique to exploration and production, including comparisons between international, UK and US standards and practices. You will also analyze examples from E&P company accounts and study the impact of adopting different accounting policies.
Regulation of oil and gas company accounting
Annual Reports
Accounting for pre-development costs
Commercial reserves
The DD&A calculation
Accounting for decommissioning
Impairment or ceiling tests
IASB extractive activities draft discussion paper
Commitments, provisions and contingent liabilities
Accounting for financing arrangements
Accounting for sales revenue
Accounting for E&P company taxes
Joint-venture and production-sharing accounting
This segment of the course will enhance your knowledge of joint-venture and production-sharing accounting issues, with emphasis on their accounting requirements. Reference will be made to sample JV and production-sharing contracts from different countries and to attempts to standardize accounting practice, e.g. COPAS, SOAP.
Ownership and exploitation of reserves
Concessionary systems
Contractual systems
PSC - accounting procedure
Cost oil and profit oil
"R" factors
PSC & JV Audit
JV accounting - best practice
JV cash management and billing
JV cost allocation
Unitisation and redetermination
Budgeting and cost control
What you will learn
This final segment of the course will improve your abilities to prepare departmental and company-wide E&P budgets and control and analyze the costs incurred. It will also enable you to understand the nature of costs unique to an E&P company, and how these costs behave under different conditions.
Realistic examples are provided to encourage you to develop a model of good budgeting and cost-control practice that can be applied back in the workplace, along with a team exercise to simulate the preparation of the annual budget of an E&P company.
Topics covered include:
Performance measurement
Cost control and different approaches to budgeting
Departmental budgets
Financial and strategic planning
Corporate budgeting