Exploration and Production Accounting - Level 1

Finance, Accounting & Audit Courses

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• What you will learn

  This introductory-level course provides a comprehensive overview of international accounting and finance practices in the E&P industry. It is particularly suitable for finance personnel who are new to the oil and gas industry, or want to gain a broader understanding of oil and gas financial policy, joint venture and cost-control topic areas.

  What you will learn

  • An overview of accounting policies and practices in the oil and gas industry
  • An introduction to managing project, development and operating costs
  • Understanding the accounting and financial management implications of exploring for and producing oil and gas
  • The background to financial issues like joint ventures that are unique to the E&P industry, and their accounting treatment

  Training method

  The course uses a combination of instruction, group discussions and practical examples and exercises to ensure delegates absorb both the theory and the practical application of the topics.

  21 hours CPD
  accreditation

  

• Course content

  Introduction to the E&P industry

  • Learn what is different about the exploration and production industry and the impact this has on accounting and financial management.

  Accounting policies

  • How accounting policies influence the reporting of financial performance
  • Successful efforts and full-cost accounting
  • The use of reserve data in accounting calculations
  • How to calculate depreciation, depletion and amortisation (DD&A)
  • How to conduct an impairment test or ceiling test
  • How to account for decommissioning costs

  Joint-venture 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 process a JV billing statement
  • How to allocate JV costs

  Cost control and analysis

  • Project and development costs
    • AFEs and cost estimating
    • how to control capital expenditures
  • How to estimate and control production operating costs
    • Fixed and variable cost analysis
    • Activity analysis
  • Drilling costs
    • how to prepare well cost estimates
    • how to control drilling expenditure
    • how to forecast drilling AFE costs
    • how to review well costs post completion
• Who should attend
  • Finance staff new to the industry who require a grounding in the various specialist discipline areas that typically comprise an oil and gas company finance function
  • Finance personnel who are being developed for broader accounting and financial management responsibilities
  • Audit and information systems staff who have frequent dealings with financial controls and systems
  • Treasury and tax specialists who require a better understanding of E&P finance and accounting

  Companion courses

  This course combines effectively with Introduction to the oil and gas industry, especially for finance personnel who are new to the oil and gas industry. If you attend both courses at the same venue during the same week, you will be entitled to a 10% discount from the combined course fee.

   

• Course reviews

  "Excellent, and want to attend Exploration & Production Accounting Level 2 and 3."Julia Shusta - Guvnor Services,

  "Was an amazing 3 days, I learned a lot of information, and the instructor was awesome and very helpful! "Ghadeer A. Yousef - Kuwait Petroleum Corp,

  "An excellent introduction to accounting issues specific to the Oil & Gas industry, along with a look at some of the technical aspects such as drilling & types of rigs & production kit (FPSOs)"Kirsty Morrison , Maersk Oil & Gas

  "The experience imparted by the trainer provides a perspective of what other oil and gas companies have encountered. It also broadens the understanding of which options exist and how they might have worked better. I look forward to attending future courses."Deon Ramnarine, BG Group