minar Objectives

At the end of this seminar participants will be able to:

• Strengthen your knowledge of finance and accounting issues necessary for your leadership position
• Assess the financial impact of current equipment performance on their organization
• Quantify the financial benefits of improved equipment performance
• Understand & analyze the three financial statements.
• Understand the terminology of finance & accounting
• Learn important distinctions between reported profit and cash flow
• Examine how financial measurement techniques such as full cost, successful efforts, and reserve recognition are used to evaluate oil and gas producing operations
• Forecast operating performance, financial position, and cash flow
• Compute financial ratios for competitive analysis
• Improve your skill in handling financial statement analysis

Organizational Impact

• Learn practical concepts and techniques that will impact your firm’s bottom line
• Managers will be able to better understand the financial impact of decisions they make
• Faster & better decisions can be derived
• Managers will make better decisions relating risk & reward
• Cash flow will be used more effectively & efficiently

Personal Impact

• Share experiences with peers from around the world
• Keep on top of your firm's financial situation & increase your own value to your organization
• Improve your ability to make sound financial and operating decisions
• Study performance measurement techniques that can be used at the individual, division, or company level
• Be able to make better financial decisions.

Seminar Outline

Accounting Rules

• Basic Oil & Gas company reporting
• Accounting requirement changes
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• Statement of cash flows
• Accounting for income taxes
• Impairment of long-lived assets to be disposed of
• Accounting for exploratory Wells in progress

 Accounting Standards & Policies

• How accounting policies influence the reporting of financial performance
• Successful Efforts and Full Cost Accounting
• How reserve data is used in accounting calculations
• Understanding how to deal with different reserve classifications
• How to deal with changes to reserve estimates
• How to calculate Depreciation, Depletion and Amortisation (DD&A)
• The Unit of Production calculation.
• Dealing with changes to reserve estimates.
• How to conduct a ceiling/impairment test
• How to account for de-commissioning costs

Joint Venture & Production Sharing Accounting

• Understanding a joint venture (JV) agreement
• What a JV agreement states about accounting
• How to prepare and process a cash call
• Understanding JV billings - how to prepare and process a JV billing statement
• How to allocate JV costs - identifying the correct costs and method of allocation
• Understanding Unitisation and how to deal with the effects of an Equity Redetermination
• Understanding Production Sharing Contracts (PSC) and how to account for PSCs
• How to account for Farm In/Farm Out and Carried Interest agreements

  Cost Control & Analysis & Accounting for Sales Revenue

• Drilling Costs - how to prepare well cost estimates and control the cost of drilling operations
• Project and Development Costs - how to control capital expenditure and major maintenance project costs
• How to estimate and control Production Operating Costs
• Materials/Inventory control and accounting
• How to account for co-mingled product streams
• How to account for under/over lifting
• How to accounting for exploration
• Fully understanding the Full Cost v Successful Efforts choice.

  Leverage & Capital structure

• Debt vs. equity: cost, benefits & disadvantages of each
• What models to use
• The optimal capital structure
• Operating leverage vs. financial leverage
• Calculating the impact of leverage on the bottom line
• Increasing vs. decreasing the leverage & its impact

Who can benefit?                    

• This seminar is designed for finance managers, maintenance managers, operations managers, facilities managers, district managers, exploration managers, asset managers, operation managers, senior managers, and all who are interested in making sense of the financial aspects of your oil and gas business!

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