About the Course

Many senior professionals need formal training in finance and often feel uncomfortable when discussing financial matters with their peers and financial professionals. This collaborative and engaging programme addresses these critical issues for established managers and gives “fast track” learning for young professionals early in their careers. It targets non-finance professionals from all areas of business who require a better understanding of how finance works.

Because the budget is prepared by relying on all departments of the organisation, whether the production, technical or administrative departments, as they provide the financial department with all the necessary data about their departments, they, in one way or another, contribute to the budgeting and planning process. Accordingly, it is necessary for them to be familiar with the basics of financial planning and financial analysis tools.

This 5-day interactive Finance for Non-Finance Professionals in the Oil & Gas Industry training course provides delegates from all specialisations and departments with an arsenal of terminology related to finance and accounting. It enables them to distinguish between different types of accounting. In addition to familiarity with the basics of estimating the cost of capital, equity, and debt, the Weighted Average Cost of Capital (WACC) will be used to analyse the feasibility of investments using all criteria and techniques.

Delegates will be familiar with the concept of risks facing organisations in general and oil & gas industry in particular by knowing the steps of the risk management process and how to identify, analyse and determine their exposure through the formation of a risk matrix that shows the probability of each type occurring.

Core Objectives

The delegates will achieve the following objectives:

• Provide delegates with a portfolio of finance and accounting terminology that helps them enhance their capabilities and functional skills
• Understand the skills of reading the company’s financial statements and financial reports, understanding and interpreting its financial statements
• Know the company’s liquidity issues, working capital management policies, and achieving financial balance.
• Acquire investment analysis and evaluation techniques to make rational investment decisions
• Familiarise with the risk management process, its steps, and the methods and strategies used to handle them

Training Approach

This training course will be conducted along with workshop principles with formal lectures, case studies, and interactive work examples. Relevant case studies will be provided to illustrate the application of each tool in an operations environment. Each learning point will be reinforced with practical exercises.

The Attendees

This training course is designed for aspiring employees who need to know the secrets of finance and accounting sciences and understand financing relationships with all organisation departments.

Likewise, it will be valuable to the professionals but not limited to the following:

• Executives who have to review the company's financial statements
• Executives who have to review the company's financial statements
• New Accountants to hone their skills and reconcile theory and practice
• Technicians and Engineers working in the production and technical fields
• Sales and Marketing Employees
• Human Resources Staff working in employment planning and salary and wage budgets
• Anyone who is not a finance professional and seeks to learn the basics of finance and accounting

Daily Discussion

DAY ONE: FINANCE AND ACCOUNTING  

• The Importance of Finance in Companies
• Corporate Finance and Financial Management Functions
• What is the Accounting Cycle?
• The Concepts of Financial Accounting, Managerial Accounting, and Cost Accounting
• Working capital Policies
• Major Financial Statements
  • Income Statement
  • Balance Sheet
  • Cash Flow Statement

DAY TWO: FINANCIAL ANALYSIS OF OIL & GAS INDUSTRY

• Revenue Recognition: Upstream, Midstream, and Downstream
• Costs of Exploration & Evaluation of Mineral Reserves (IFRS 6)
• Fixed and Variable Costs
• Financial Statement Analysis: Vertical Analysis, Horizontal Analysis, and Ratios Analysis
• International Financial Reporting Standards (IFRS) and US GAAP
• Analysis and Evaluation of Oil & Gas Financial Statements

DAY THREE: FINANCIAL PLANNING, BUDGETING, AND FORECASTING

• Cost Management vs Cost Control
• Financial Strategic Planning
• Budgeting Processes
• Types of Budgets
• Preparing, Implementing & Controlling Budgets
• Sales & Expenses Forecasting Techniques
• Managing the Project Budget

DAY FOUR: CAPITAL INVESTMENT APPRAISAL IN THE OIL & GAS INDUSTRY

• Time Value of Money: Future Value vs Present Value
• The Cost of Capital: Cost of Equity, Cost of Debt, and Weighted Average Cost of Capital (WACC)
• Criteria of Investment Appraisal: Accounting Rate of Return (ARR), Pay-Back Period (PBP), Net Present Value (NPV) and Internal Rate of Return (IRR)
• Break-Even Analysis
• Mergers & Acquisitions: Concept and Financial Treatment

DAY FIVE: FINANCIAL RISK MANAGEMENT

• Uncertainties & Risk Concept
• Risk Management Process
• Risk Analysis “Qualitative and Qualitative “: Probability & Impact
• Risk Response: Techniques of Handling Risk
• Hedging Risk Using Derivatives
• Managing Interest Rate Risk & Foreign Currency Risk