Course Details

This course allows personnel who don't have a financial background to understand the basic principles, theory and practice of financial reporting and analysis as they apply to the oil and gas industry.

What you will learn

• how to interpret, understand and act on financial information
• how to develop more effective decision-making skills
• elements of financial management specific to the oil and gas industry
• a conceptual understanding of key E&P accounting topics including depreciation, reserves, decommissioning, and asset impairment tests

Training methods

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.

14 hours CPD Certified

 

Sources and uses of financial information

• sources of financial data
• financial information systems
• uses of financial information for decision-making

Understanding financial information

• understanding basic principles
• the profit and loss account
• the balance sheet
• the importance of working capital and how to control it
• the difference between capital expenditure and operating expenditure

Cash flow

• understanding the difference between cash flow and profit
• how to control cash flow
• techniques for measuring financial performance
• how to measure financial performance
• how to compare the performance of different petroleum companies

Oil & Gas industry accounting policies

• how to account for exploration and appraisal costs
• understand the nature and classification of reserves and the use of reserve data in E&P accounting
• DD&A - the basic concepts and examples of the Unit of Production calculation
• understand asset impairment tests
• how to account for decommissioning
• a review of a sample set of E&P company published accounts

Effects of taxation

• how tax effects profit and cash flow
• the impact of tax on decisions

Budget preparation and control

• the role of financial planning
• how to prepare a budget
• how to control a budget

This course is aimed at non-financial personnel at all levels and in all disciplines in the oil and gas industry who want to develop a better understanding of finance and budgeting.

Typical delegates include:

• managers and supervisors wanting to improve their understanding of financial reports and make more effective use of financial information for strategic and operational decision-making
• specialists in all disciplines who have to interpret and work with financial information
• all personnel with budget responsibilities
• advisers who make recommendations based on financial data

"Fascinating insights into the accounting world, which will help me understand and contribute in some of the meetings I attend. I had heard lots of the acronyms before but now they mean something."Mike Ewan, GDF Suez

"It was all perfect from the first communication with MDT to register, very helpful. The instructor is one of the best I have come across, coming from an accounting background. The course has added a lot to my knowledge on the technical side."Tasneem Abdelgadir, Petronas Sudan

"Great course - a must attend for all non-financial personnel to be able to excel."Fidelis Lekule, Ophir Energy