Course Overview
Oil & Gas Accounting and Financial management is crucial to energy firms. Companies that practice sound account and financial management maximise the components of good fiscal governance. It also helps to optimise cost-effectiveness and cost-efficiency. Furthermore, quality financial reports and statements are essential for controlling operations and making decisions. Creditors and investors rely on reliable and timely financial data to assess the company’s future sustainability.
This Oil and Gas Financial Accounting & Reporting course gives you the most recent financial knowledge and abilities to deal with challenges. It looks at the internationally accepted accounting procedures and methodologies used in the Oil & Gas sector to report costs, asset values and profit. You will also learn risk management strategies to manage oil prices, exchange rates and interest rate volatility using derivatives. This course will cover the effective financial evaluations and project management skills required for the industry.
Course Duration
5 Days
Who Should Attend
- Accountants and Finance Professionals responsible for financial accounting, treasury, budget preparation, and management reporting
- Process and Non-technical Professionals who require a more in-depth understanding of financial accounting reporting, project management, and forecasting techniques
- Financial Planners and Cost Analysts
- Line/Unit Heads with direct planning and budgeting responsibility
- Account Personnel and Business Consultants
Course Objectives
By the end of this course, participants will be able to
- Understand the financial accounting principles specific to the oil and gas industry.
- Gain insights into the regulatory environment affecting financial reporting.
- Learn to apply industry-specific accounting standards and practices.
- Enhance skills in preparing and analyzing financial statements.
- Develop the ability to handle complex financial transactions and reporting requirements.
- Understand the financial implications of exploration, development, production, and decommissioning activities.
- Improve decision-making capabilities through better financial data analysis.
Course Outline:
Module 1 - Oil and Gas Industry Overview & the Role of Accounting and Finance
- The Nature of the Oil & Gas sector
- Current & Future challenges within the sector – a question of Supply & Demand
- The Role of the Finance professional
- Various financial reporting frameworks
- Oil and Gas financial accounting and reporting principles
Module 2 - Oil and Gas Accounting Methods and Techniques
- International Financial Reporting Standards (IFRS) & International Accounting Standards (IAS) relevant for oil and gas companies
- Specific financial accounting treatment in the Oil & Gas sector
- Accounting for Costs – Acquisition; Exploration; Development & Production
- Accounting for Assets – Asset Recognition; Depreciation Depletion & Amortisation and Asset Retirement
- Accounting for Revenue
Module 3 - Partnerships and Understanding Financial Information
- Joint Ventures and Product Sharing Agreements
- Financial Performance, Position and Cash Flow Statements
- Ratio Analysis and Interpretation
- Analysing and Interpreting’ Energy Specific’ Ratios
Module 4 - Risk Management
- Understand the Market and Risks
- Importance and Application of Risk Management
- Hedging using Derivatives
- Developing and Managing Contingencies
- Probabilistic Methodology using Monte Carlo Simulation
Module 5 - Capital Contracting and Project Performance and Reporting
- Identify The Business Needs & Developing, Measuring, and Reporting KPIs
- Project Lifecycle and Project Planning/Management
- Probabilistic Methodology Using Monte Carlo Simulation
- Developing and Challenging a Cost Estimate
- Earned Value Management for Oil and Gas Profitability Index (PI)
