Oil & Gas Accounting and Performance Measurement

About the Course

This 5-day interactive Oil & Gas Accounting and Performance Measurement training course is a comprehensive course designed to immerse professionals in the specialised world of oil & gas finance and accounting. It covers the entire spectrum of accounting principles and practices essential to the oil & gas industry, from exploration and production accounting to financial analysis and performance measurement. Delegates will gain a deep understanding of the financial context of the oil & gas sector, including the unique characteristics of upstream, midstream, and downstream segments.

This training program introduces cost allocation, capitalisation, the intricacies of revenue recognition, and calculating depreciation, depletion, and amortisation of oil & gas assets. It also focuses on joint venture accounting and revenue-sharing agreements, offering practical skills through workshops on real-world applications. Financial analysis and performance measurement form a core part of the program, equipping delegates with the tools to assess financial health through key ratios, cash flow management, project evaluation, and investment decision-making techniques. It addresses risk management and hedging strategies, enhancing the ability to navigate the volatile oil & gas market. The regulatory environment and taxation sessions provide a thorough overview of compliance, environmental accounting, domestic and international tax considerations, and the challenges of cross-border transactions. Through case studies, delegates explore solutions to taxation challenges in global operations.

It concludes by looking forward to the impact of technological advances, sustainability reporting, and the evolving context of oil & gas accounting. Emerging trends such as blockchain and AI are discussed, preparing delegates for future challenges and opportunities in financial management within the sector. Designed for accountants, financial analysts, and professionals in the oil & gas industry, it offers valuable insights and practical knowledge, empowering delegates to develop effective financial management strategies that align with industry best practices and regulatory requirements.

Core Objectives

The delegates will achieve the following objectives:

• Understand the unique accounting principles, practices, and financial reporting requirements pertinent to the oil & gas industry, including exploration, production, and operations accounting
• Learn to accurately allocate costs, capitalise expenses, and apply revenue recognition standards specific to oil & gas operations to ensure compliance and accurate financial reporting
• Acquire skills in conducting financial analysis using key ratios, cash flow management techniques, and project evaluation metrics to assess and enhance the financial health of oil & gas entities
• Gain insights into the complexities of joint venture accounting, revenue-sharing mechanisms, and the calculation of depreciation, depletion, and amortisation for oil & gas assets
• Develop a comprehensive understanding of the regulatory environment, environmental accounting, and both domestic and international tax considerations affecting the oil & gas sector
• Explore the impact of technological advances such as AI and blockchain on accounting and finance within the oil & gas industry and prepare for future challenges and opportunities
• Formulate and implement strategies for strategic workforce planning, including succession planning and career pathing, to build a resilient and agile workforce ready for the future of work

Training Approach

The training course is structured around a dynamic and interactive pedagogical approach, incorporating a mix of interactive sessions, case study analyses, and practical exercises tailored to engage delegates actively and foster a deep understanding of the subject matter. They are encouraged to share their insights and experiences through interactive sessions, facilitating a rich exchange of knowledge and perspectives.

Case study analyses provide real-world context, allowing delegates to explore complex scenarios and apply theoretical concepts in practical settings. Practical exercises reinforce learning outcomes, directly enabling them to apply new skills and tools to realistic situations. This comprehensive method ensures a balanced mix of theory and practice, enhancing delegates’ learning experience and preparing them to implement their newfound knowledge effectively in their professional roles.

The Attendees

This training course is specifically designed for financial, strategic, and operational professionals within the oil & gas industry.

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

• Accountants and Financial Analysts specialising in the Energy Sector
• Operations Managers and Engineers with Financial Oversight Responsibilities
• HR Managers & Professionals involved in Strategic Workforce Planning
• Project Managers overseeing Oil & Gas Projects
• Corporate Strategists and Business Development Managers in the Energy Industry
• Legal Professionals and Corporate Lawyers navigating Oil & Gas Regulations and Agreements
• Sustainability Officers addressing Environmental Accounting and Reporting

Daily Discussion

DAY ONE: INTRODUCTION TO OIL & GAS INDUSTRY ACCOUNTING

• Overview of the Oil & Gas Industry: Key Characteristics and Financial Context
• Oil & Gas Accounting Principles and Practices
• Understanding the Upstream, Midstream, and Downstream Segments
• Accounting for Exploration and Evaluation Activities
• Financial Reporting in the Upstream Segment

DAY TWO: ACCOUNTING FOR PRODUCTION AND OPERATIONS

• Cost Allocation and Capitalisation in Oil & Gas Operations
• Accounting for Production Costs and Revenue Recognition
• Depreciation, Depletion, and Amortisation (DD&A) of Oil & Gas Assets
• Joint Venture Accounting and Revenue Sharing Agreements
• Calculating DD&A for an Oil Field

DAY THREE: FINANCIAL ANALYSIS AND PERFORMANCE MEASUREMENT IN OIL & GAS INDUSTRY

• Key Financial Ratios and Performance Indicators for Oil & Gas Companies
• Cash Flow Analysis and Management in the Oil & Gas Sector
• Project Evaluation and Investment Decision Making: NPV, IRR, and Payback Period
• Risk Management and Hedging Strategies for Oil & Gas Operations
• Financial Analysis of an Oil & Gas Organisation’s Annual Report

DAY FOUR: REGULATORY ENVIRONMENT AND TAXATION IN OIL & GAS INDUSTRY

• Overview of the Regulatory Environment for the Oil & Gas Industry
• Accounting for Environmental Costs and Liabilities
• Taxation in the Oil & Gas Industry: Domestic and International Considerations
• Transfer Pricing and Cross-Border Transactions within Oil & Gas Companies
• Navigating Taxation Challenges in International Oil Operations

DAY FIVE: EMERGING TRENDS AND CHALLENGES IN OIL & GAS ACCOUNTING

• The Impact of Technological Advances on Oil & Gas Accounting and Finance
• Sustainability Reporting and ESG Considerations in the Oil & Gas Sector
• Addressing the Financial Implications of Decommissioning and Abandonment
• Future Trends in Oil & Gas Accounting: Blockchain, AI, and More
• Developing Strategies for Effective Financial Management in Oil & Gas