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overview
Key Learning Objectives
- Consolidate understanding via a brief review of oil and gas operations
- Develop a detailed understanding of the key accounting methodologies and practices specific to oil and gas
- Examine accounting methods, including successful efforts and full cost accounting
- Gain an awareness of the key accounting issues confronting oil and gas companies
- Review cost allocation methodologies for exploration, development and production activity
- Understand how to measure, determine, report and account for oil and gas revenue
- Analyse the tools, techniques and industry practices on joint interest accounting, conveyances and production sharing contracts
- Identify key accounting standards applicable to the oil and gas industry
- Develop an appreciation of the disclosure requirements of the accounting standards
- Learning will be facilitated with case studies and problem questions/scenarios
About the Course
This course is a more detailed, comprehensive version of Course 1 the introductory course – in the Informa Oil & Gas Financial Training Series. Its goal is to build on your knowledge and awareness of oil and gas specific accounting practices to help your contribution to providing accurate, valuable contributions to your team.
It encompasses a short refresher on the oil & gas value chain then moves straight into accounting specific detail. It covers Course 1 aspects in more depth, including accounting specific issues relating to arrangements such as JOAs, JVs, PSCs, farm ins and farm outs. Financial reporting in oil and gas will also be covered.
Additionally, select aspects of this course can be cherry-picked into shorter versions of this course depending on the client skills needs and areas of focus at the time
Who Will Benefit
This course is designed for finance personnel, audit staff, treasury and tax specialists new to the oil and gas industry who need to understand the specialist disciplines that comprise and oil and gas company finance function. It is also useful for those who have been in the industry for a while, yet have changed specialisms, or have had little formal training in oil and gas.
Testimonials
“I enjoyed the interactive nature of the course. I feel I gained a better understanding of their main accounting principles for oil and gas. The instructor was very friendly, helpful and I found his method of training interesting and beneficial”
Financial Analyst, Santos
Terms & Conditions
To read the training course terms and conditions read more here
Course Outline
Brief review and refresher of oil and gas operations
This is to ensure every participant is up to the same level of understanding about the oil and gas value chain
- Origin of petroleum
- Exploration methods and procedures
- Acquisition of mineral interests
- Drilling operations
- Recovery processes
- Production and sales
Introduction to oil and gas accounting
- Historical cost
- Introduction to successful efforts accounting
- Introduction to full cost accounting
Non-drilling exploration costs – successful efforts
- G&G costs
- Carrying and retention costs
- Well testing
- Support facilities and equipment
Acquisition costs of unproved property – successful efforts
Drilling and development costs – successful efforts
- Well classification
- Exploratory drilling costs
- Development drilling costs
- AFE’s and drilling contracts
- Other drilling operations (workovers, damaged or lost equipment, fishing, side-tracking)
- Drilling and development seismic
- Accounting for suspended well costs
Proved property cost disposition – successful efforts
- Cost disposition through amortisation
- Cost disposition through abandonment or retirement of proved property
- Impairment
Full cost accounting
- Disposition of capitalised costs
- Reserves in place – purchase
- Interest capitalisation
Accounting for production activities
- Cost of production versus inventory
- Recognition of inventory
- Accumulation and allocation of costs
- Individual production costs
- Joint interest operations
Accounting for asset retirement obligations and asset impairment
Accounting for revenue from oil and gas sales
- Measurement and sale of oil and natural gas
- Determination of revenue
- Unitisations
- Oil and gas revenue
- Recording gas revenue
- Timing of revenue recognition
- Revenue reporting to interest owners
Joint Interest Accounting
- Joint operations
- JOA
- Accounting procedure
- Joint interest accounting
- Joint interest audits
Conveyances
- Farm-in/Farm-out
- Free wells
- Carried interest or sole risk
- Unitisations
Production Sharing Contracts
- Cost recovery
- Cost oil and profit oil
- Joint operating agreements – recoverable vs nonrecoverable costs
Disclosures in the financial report
- Review of key accounting policies
- Required disclosures
- Examples of accounting policies
- Develop an appreciation of the disclosure requirements of the accounting standards
On-site & in-house training
Deliver this course how you want, where you want, when you want – and save up to 40%! 8+ employees seeking training on the same topic?
Talk to us about an on-site/in-house & customised solution.
contact
Still have a question?
Sushil Kunwar
Training Consultant
+61 (0)2 9080 4395
training@informa.com.au