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ONLINE: Exploration & Production Accounting - Level 2 (FIN902)

  • 22-26 March 20215 daysVirtual instructor-led course, OnlineCourse Fee: 2100 EUR + VAT
  • 14-18 June 20215 daysVirtual instructor-led course, OnlineCourse Fee: 2100 EUR + VAT

Description

The aim of this training course is to raise your knowledge and understanding of international E&P finance and accounting to an intermediate level. This is achieved by in-depth examination of international practices and current developments across a broad range of relevant topics. You are encouraged to challenge existing methods as a basis for reviewing procedures and introducing improvements in your own work place.

Course Structure: 10 modules of max. 2 hours each, delivered over 5 days
The first session will run for 2½ hours to allow for introductions, subsequent sessions will be 2 hours long. Each day will consist of 2 sessions (1 morning/1 afternoon) with a break of 10 minutes during each of the sessions, time will be allowed for questions and discussions.

Course Level: Skill
Instructor: Matilde Giulianelli or Robert Hockley

Designed for you, if you are...

  • Working in finance and have a good foundation knowledge in exploration and production accounting

We recommend that, to derive maximum benefit from this course, you first attend our predecessor Level 1 course.

How we build your confidence

The course content has been designed to be delivered via a ‘Live’ Remote Instructor-Led platform. It is a highly participative course using a combination of instruction, group discussions and practical examples and exercises to ensure attendees absorb both the theory and the practical application of the topics.

The benefits from attending

By the end of the course you will:

  • Enhance your knowledge of accounting and reporting issues unique to the E&P industry with emphasis on the application of International Financial Reporting Standards (IFRS)
  • Improve your understanding of the accounting and reporting of Sales Revenue and E&P Industry Taxation
  • Improve your knowledge of the Fiscal / Contractual frameworks commonly used in the E&P industry, including the use of Production Sharing Contracts and the related accounting implications
  • Develop your understanding of Joint Venture Accounting issues including Unitisation & Redetermination
  • Improve your knowledge of the Corporate Budget and Planning process including a review of Key Performance Indicators and Company Strategy
  • Raise your awareness of the E&P business activity for which we are accounting and reporting

Topics

Accounting Policies – Regulation and Accounting for Exploration & Appraisal Costs
  • Features of E&P industry and the related accounting implications
  • Accounting standards applicable to the E&P industry
  • Understanding the scope for the use of differing accounting policies and practices in the capture and reporting of exploration and appraisal costs

Accounting Policies – Reserves and DD&A
  • The nature of commercial reserves and their significance in accounting and reporting
  • Calculating DD&A on a Unit of Production basis
  • Updating the DD&A calculation to reflect changes in costs and reserve estimates

Accounting Policies – Decommissioning and Asset Impairment Tests
  • Interpreting and applying IAS 37 in accounting for Decommissioning
  • Performing Asset Impairment Tests under IAS 36

Accounting Policies - Review
  • Team exercise to consolidate E&P accounting policy topics covered to date
  • Commitments, Provisions and Contingent Liabilities
  • A review of IFRS 16

Accounting for Sales Revenue plus an Introduction to E&P Taxation
  • Shared pipelines
  • Understanding and accounting for Overlift/Uplift adjustments
  • E&P tax – a review of common industry taxes

State Frameworks for the Control & Exploitation of Petroleum Reserves
  • Overview of issues pertaining to the ownership of oil & gas
  • The PSC System – understanding the difference between cash flow and cost recovery
  • The relationship between cost oil & profit oil
  • Calculating and accounting for entitlement barrels

Joint Ventures
  • Overview of Joint Ventures and the Bidding Process
  • The Joint Operating Agreement (JOA) and the Accounting Procedure
  • The principles of JV Accounting
  • Understanding JV Farm In / Farm Out arrangements

Joint Ventures – Unitisation and Redetermination, Cash Calls & Billings
  • Understanding the impact of Unitisation and Redetermination
  • Principles of Cash Calls and Invoice Funding
  • JV Billing – a practical example including modified cost sharing due to an equity redetermination

Planning & Budgeting
  • The top down / management by objectives approach
  • Preparing a budget including the Key Financial Statements

Performance Measurement & Company Strategy
  • Review of the most commonly used industry key performance indicators
  • Compare and contrast Large & Small E&P company strategy
  • Team exercise to prepare and present an E&P company strategy

Customer Feedback

"Instructor was very good - above average, with great energy to present all relevant info." - Deputy GM at NIS

“A course which is relevant to any oil and gas professional who wants to expand their knowledge of the oil & gas industry. A very experienced trainer, who understands the industry well.” - BG Kenya

“I have been waiting for a course like this one for a long time now and it will change my daily work a lot and my view on the decisions that I have to make every day. I would love to help set up something like this course in Morocco to help others to understand the business.” - Kosmos Energy

"I have been auditing O&G companies for the last 13 years but never quite understood certain difficult terminologies and calculations. The training course covered these all and I really appreciate it." - KPMG


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