Oil & Gas Accounting & Performance Measurement

Oil & Gas Accounting & Performance Measurement

 

Date & Location: (15-19/Jan) Cairo – ( 10-14/Dec) Casablanca


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Course Overview

Introduction:

This course will highlight:

  • The major risks of the Oil & Gas sector and the tools to manage those risks
  • How to Prepare Financial Statements in line with IFRS
  • The latest international tools and techniques to develop skills of evaluation and performance measurement
  • Issues facing multinational companies and those engaged in Joint Ventures or Production Sharing Agreements
  • The lessons to be learnt from an evaluation of leading international Oil & Gas companies

 

Program Objectives:

  • Evaluate the Major Issues facing the Oil & Gas sector
  • Prepare Financial Statements in accordance with International Financial Reporting Standards (IFRS)
  • Evaluate the Financial and Operational Performance of international Oil & Gas companies
  • Evaluate the importance and contribution of Oil & Gas to the National Governments and the Fiscal Budget
  • Recommend Strategic Plans to Improve Performance

 

Who Should Attend?

This course is suitable to a wide range of professionals but will greatly benefit:

  • Corporate Accountants, Financial Controllers, Treasury Officers, Management Accountants
  • Finance Staff in General Accounting, Payables, Receivables, Inventory, Fixed Assets, etc.
  • Joint Venture Accountants and Auditors
  • External, Financial and Internal Auditors
  • Government Regulators and Auditors
  • Financial and Investment Analysts

 

Program Outline:

DAY 1

The Oil & Gas Sector – Identifying the Issues affecting Accounting & Performance Measurement

  • Latest Events in the Oil & Gas sector- price volatility and supply & demand changes
  • Managing the macro-economic factors, e.g. interest rates, exchange rates, oil prices
  • Resources & Reserves
  • Strategic Choices currently facing the sector
  • Capital Investment Issues
  • Performance across the Sector

DAY 2

Major Accounting Issues in the Oil & Gas Sector

  • Revenue Recognition
  • Costs in Acquisition, Exploration, Development and Production of new oil or natural gas reserves
  • Break Even Oil, Cost Oil & Profit Oil
  • Accounting Approaches – The “Successful Efforts” (SE) Method or the “Full Cost” (FC) Method
  • IFRS in relation to the Oil & Gas Sector
  • IFRS 6: Exploration for and Evaluation of Mineral Assets

DAY 3

Accounting for Assets

  • IAS 16: Property, Plant and Equipment
  • Depletion, Depreciation & Amortisation (“DD&A”)
  • IAS 36: Impairment of Assets
  • IAS 37: Provisions, Contingent Liabilities and Contingent Assets
  • IAS 38: Intangible Assets
  • IAS 39 & IFRS 9 Financial Instruments: Recognition and Measurement

DAY 4

Measuring Financial Performance

  • Cross Sectional & Time Series Analysis
  • Financial Analysis: Income Statements & The Statement of Financial Position (Balance Sheet) Analysis
  • Cashflow Analysis and its importance in the Oil & Gas sector
  • Dupont Analysis – Evaluating and Improving Return on Equity (ROE)
  • Evaluation of Share Price and Investment Performance
  • Evaluating the Financial Performance of leading international companies in the sector

DAY 5

Measuring Operational & National/Government Efficiency and Performance

  • Measuring Reserves – Life; Reserves per Well; Replacement Ratio etc
  • Finding; Development & Production Capability & Efficiency
  • Evaluating the Operational Performance of leading international companies in the sector
  • Earned Value Added Analysis of Projects
  • Evaluating the Fiscal Budgets of Oil & Gas producing countries
  • National/Government Measures of Efficiency & Performance