Introduction
The Oil & Gas Exploration & Production (E&P) Accounting workshop provides a comprehensive understanding of the financial practices, reporting standards, and performance measurement issues specific to the oil and gas industry. Whether you are already familiar with basic accounting principles or looking to deepen your knowledge, this workshop will enhance your ability to prepare, utilize, and critically assess oil and gas financial reports. It focuses on key industry practices, including international and national accounting standards, oil and gas accounting methods, and how to interpret financial data to meet the unique needs of the oil and gas industry.
This oil and gas finance workshop is structured around practical exercises, group discussions, and real-world examples, helping participants apply accounting solutions for the oil and gas industry in everyday business situations. The training provides critical insights into oil and gas finance, the financial implications of financing oil and gas projects, and key financial statements used in the oil and gas industry.
Workshop Objectives
- Understand the accounting standards, policies, and practices used in the oil and gas industry.
- Learn how to apply international accounting standards (such as IFRS 6 and IAS 16) to oil and gas accounting.
- Gain insights into the financial implications of Production Sharing Contracts and other agreements between host governments and international oil companies.
- Enhance the relevance and reliability of financial reports to meet the specific needs of oil and gas finance.
- Learn how to benchmark oil and gas business performance using financial analysis tools.
- Examine accounting issues in joint ventures in the oil and gas industry.
Workshop Outlines
Day 1: The Oil & Gas Sector and Major Accounting Issues
- Overview of the oil and gas sector, macroeconomic factors affecting the industry.
- Key financial risks in the oil and gas industry, including commodity prices, currency fluctuations, interest rate risks, and political and environmental factors.
- Costs in oil and gas exploration: acquisition, development, and production of oil and natural gas reserves.
- Introduction to accounting methods in the oil and gas sector: “Successful Efforts” (SE) and “Full Cost” (FC) methods.
- A detailed overview of IFRS and its impact on the oil and gas industry, focusing on standards like IFRS 6 and IAS 16.
Day 2: Evaluating Performance and Identifying Accounting Issues of BP, Chevron, Shell, & SABIC
- Analysis of the financial statements of major global oil companies.
- Reviewing Income Statements, Balance Sheets, and Cash Flow Statements.
- DuPont Analysis: Evaluating and improving Return on Equity (ROE).
- Assessment of share price and investment performance.
- Identifying and evaluating the accounting policies used by these leading oil and gas companies.
Day 3: Reserves, Production, and Cost of Sales
- Classification of oil and gas reserves and reserve quantity disclosures.
- Analyzing production costs, including lifting costs, maintenance costs, and royalties.
- Understanding Depreciation, Depletion, and Amortization (DD&A) in the context of the oil and gas industry.
- Conducting impairment tests and ceiling tests for assets.
- Decommissioning and restoration obligations and their financial reporting requirements.
Day 4: Financial Analysis, Budgets, and Management Reports
- Analyzing financial performance: profitability, liquidity, and solvency of oil and gas companies.
- The budget process: understanding authorization of expenditure in oil and gas projects.
- Management reports: creating reports that support decision-making and track performance, including variance analysis.
Day 5: Creative Accounting and Corporate Governance
- An exploration of creative accounting practices in the oil and gas industry.
- Understanding the role of auditors in ensuring compliance and transparency in financial reporting.
- Internal and external audits, ethical issues, and regulatory compliance.
- Corporate governance in oil and gas finance and its impact on investor confidence and share prices.
Why Attend this Course: Wins & Losses!
- Gain a solid understanding of oil and gas accounting methods, which will enable you to apply practical accounting solutions for the oil and gas industry.
- Learn how to evaluate the performance of oil and gas companies through financial statement analysis and benchmarking techniques.
- Acquire the knowledge to manage financing oil and gas projects, from exploration to production, with insights into budgeting and management reporting.
- Discover the best practices for understanding and applying international financial reporting standards in the oil and gas industry.
- Enhance your ability to assess joint ventures and other complex agreements in the oil and gas sector.
Conclusion
The Oil and Gas Exploration & Production (E&P) Accounting workshop is an essential program for professionals who seek to understand and navigate the complexities of oil and gas finance. Whether you are involved in oil and gas accounting, financing oil and gas projects, or interested in pursuing a career in the oil and gas industry, this workshop will provide you with the knowledge and tools necessary to succeed. Enhance your understanding of oil and gas financial reporting, improve your ability to analyze industry-specific financial statements, and learn how to manage performance effectively.
Don’t miss the opportunity to deepen your expertise and elevate your career in the global oil and gas industry.
