Course description
The oil production industry is characterized by a special technical and economic nature. The element of risk and uncertainty of the results is necessary in the research and exploration phase, which may not lead to meaningful economic results, or on the contrary, it may lead to useful results that enable the recovery of the full investment costs within a short period.
Also, this industry needs large capitals and a long period of time to recover them, and this is what makes countries often unable, in general, to rely on themselves to finance the huge expenditures necessary for oil exploration, development and production, which makes these activities a field for several types of petroleum contracts such as concessions. Lease contracts and production sharing contracts, and this leaves significant implications for the accounting practices of oil production companies that have to portray the technical and legal activity so that the financial statements reflect this activity.
Upcoming start dates
Upcoming start dates
Suitability - Who should attend?
Accounting and Finance course in the oil and gas industry, designed for:
- Managers of all companies and institutions.
- All employees in the management of institutions and companies.
- Accountants in all government institutions and private companies.
- Management accounting officials in companies.
- All those wishing to learn an integrated program in management accounting.
- Graduates and students of the faculties of economics, financial and banking sciences.
Outcome / Qualification etc.
- Appreciating the value of financial implications on daily decisions and actions at work.
- Dealing more confidently and effectively with colleagues regarding financial matters.
- Improving the quality of information received and provided in the field of finance.
- Increasing the success rate in licensing expenditures and increasing efficiency in the use of allocated funds.
- Utilize departmental budgets and monthly management reports to improve financial control over the area of operations.
- Examine the financial information announced in the company's annual accounts and reports.
- Provide case studies, solved examples, and abstracts from illustrative annual reports in oil and gas companies, to support learning throughout the course.
Training Course Content
Day 1
Exploration and production and project economics
- Work environment.
- Objectives.
- Stakeholders.
- Corporate governance.
- Exploration and Production.
- The risk and the return.
- Commercial arrangements.
- Domain lifecycle.
- Project economics
- Project cash flows.
- The time value of money.
- Discount and cost of capital.
- Project economic models.
- Decision criteria.
Day 2
Accounting, development and exploration costs
- Accounting system.
- Data capture and recording.
- Cash and receivables.
- The balance sheet.
- Income statement and measure profit.
- Accounting principles and standards.
- Capital and operational expenditures.
- Match costs with returns.
- Assets and Expenses.
- Exploration and evaluation costs.
- Total cost and successful efforts.
- Intangible assets.
- Development costs
- Obligations.
- Tangible assets.
Day 3
Reserves, production, and costs of sales
- Oil and gas reserves.
- Classification of reserves.
- Reserve quantity disclosures.
- Production costs.
- Crane costs
- Maintenance costs.
- Royalties.
- Depreciation, depreciation, and amortization.
- Unit production method.
- Change in costs and reserves.
- Maximum and impairment tests.
- Requirements of the testing process.
- Accounting and testing results.
- Removal and recovery obligations.
- Reporting the costs and obligations of shutting down operations or withdrawing licenses...
Day 4
Risk and cost-sharing agreements
- Joint projects.
- Cash orders.
- Invoice lists.
- Accruals and levers.
- Transfers of interest or risk.
- Subcontracting for a service.
- Interests raised (performance fee).
- Production sharing contracts.
- Cash flow effect.
- Reserve effect.
- Long term gas contracts.
- Pricing mechanisms.
- Agreement to purchase the product or pay the fine.
Day 5
Financial analysis, budget preparation, and administrative reports
- Financial statement analysis
- Profitability, liquidity, and financial convenience.
- Investment metrics.
- Budgets.
- Authorization to carry out expenses.
- Budget preparation process.
- Administrative reports.
- Liability reports.
- Variance analysis.
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London Premier Centre
London Premier Centre is a UK leading training provider based in London and specialises in international short courses. Our inspiring, comprehensive portfolio of more than 400 professional development courses and seminars covers a wide range of professions from Administration, Leadership,...