Finance and Accounting Principles for The Petroleum Industry  register

Course Overview
Making the most efficient use of resources is critical to the success of any company. Finance and accounting comprise the universal business language and help manage those resources effectively. The objective of this course is to improve delegates’ job performance by enhancing their understanding of current international practices in finance and accounting within the E&P industry. This is achieved through an examination of accounting standards, policies and practices in the oil and gas industry, and the accounting and financial management implications of exploring for and producing oil and gas.

An understanding of accounting also allows a company to trace a competitor’s actions from its financial statements and to plan accordingly.

Course Objectives

  • Apply basic concepts and terminology for accounting and finance in oil and gas
  • Create accounting statements, including a cash flow statement from data accumulation to audited financial statements
  • Distinguish between the different financial statements and their roles
  • Distinguish between financial, managerial, and contract (joint operations) accounting
  • Recognize the different oil and gas accounting methods
  • Determine the difference between profits and cash flow
  • Understand financial reporting requirements for oil and gas companies under IFRS, U.K. and U.S. GAAP
  • Apply capitalization rules and depreciation methods
  • Recognize accounting treatments of joint ventures such as Production Sharing Agreements
  • Evaluate a ceiling-test
  • Read and interpret those confusing footnotes
  • Read and use the disclosures for oil and gas companies
  • Recognize how accounting decisions can affect earnings, cash flows and operational decisions
  • Calculate, understand and analyze financial reports and basic oil and gas ratios

Course Outline

  • Getting started: Financial terms and definitions, the language of business; Accounting rules, standards and policies
  • Constructing the basic financial statements
  • Classifying assets and liabilities
  • Comparing different accounting elements
  • Accounting for joint operations
  • Accounting and reporting