Course Objectives:

• 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.

Course Outlines:

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.

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