Advanced Oil and Gas Accounting: International Petroleum Accounting (1) PG Course. Contents include Abandonment Cost, Accounting Period, Amortization, ASB, Conservatism, Consistency, Cost Disposition, DD&A Calculation, Drilling Exploration Cost Under SE, Dual Aspect, Entity Concept, FASB, Financial Governance, Full Cost Accounting (FCA), GAAP, Going Concern, IASC, IASCF, IFRS, Materiality, OIAC, Development Costs, Realization, SEC. in Abuja, Accra, Amman, Bangkok, Banjul, Beirut, Birmingham, Bogotá, Brasilia, Brunei, Brussels, Bucharest, Cairo, Colombo, Conakry, Dodoma, Doha, Dubai, Durban, Gaborone, Georgetown, Hanoi, Islamabad, Jakarta, Jeddah, Kathmandu, Kinshasa, Kuala Lumpur, Kuwait, Lagos, Lima, London, Luanda, Lusaka, Manama, Manila, Maputo, Muscat, Nairobi, New Delhi, New York, Niamey, Paramaribo, Paris, Quito, Rabat, Seoul, Singapore, Tokyo, Toronto, Tripoli, Windhoek, Wolverhampton, etc. and Online.

Seminar or Course Number 046 -  Advanced Oil and Gas Accounting: International Petroleum Accounting (1) Course, Leading to Diploma – Postgraduate in Advanced Oil and Gas Accounting: International Petroleum Accounting (1), 36 Credit-Hours, accumulating to a Postgraduate Certificate, with144 additional Credit-Hours, and a Postgraduate Diploma, with 324 additional Credit-Hours.

Doctor of Philosophy {(PhD) {University College London (UCL) - University of London)};

MEd Management (University of Bath);

Postgraduate (Advanced) Diploma Science Teacher Ed. (University of Bristol);

Postgraduate Certificate in Information Systems (University of West London, formerly Thames Valley University);

Diploma in Doctoral Research Supervision, (University of Wolverhampton);

Teaching Certificate;

Fellow of the Institute of Management Specialists;

Human Resources Specialist, of the Institute of Management Specialists;

Member of the Asian Academy of Management (MAAM);

Member of the International Society of Gesture Studies (MISGS);

Member of the Standing Council for Organisational Symbolism (MSCOS);

Member of ResearchGate;

Executive Member of Academy of Management (AOM). There, his contribution incorporates the judging of competitions, review of journal articles, and guiding the development of conference papers. He also contributes to the Disciplines of:

Human Resources;

Organization and Management Theory;

Organization Development and Change;

Research Methods;

Conflict Management;

Organizational Behavior;

Management Consulting;

Gender & Diversity in Organizations; and

Critical Management Studies.

Professor Dr. Crawford has been an Academic in the following UK Universities:

University of London (Royal Holloway), as Research Tutor;

University of Greenwich (Business School), as Senior Lecturer (Associate Professor), in Organisational Behaviour and Human Resource Management;

University of Wolverhampton, (Wolverhampton Business School), as Senior Lecturer (Associate Professor), in Organisational Behaviour and Human Resource Management;

London Southbank University (Business School), as Lecturer and Unit Leader.

His responsibilities in these roles included:

Doctoral Research Supervisor;

Admissions Tutor;

Postgraduate and Undergraduate Dissertation Supervisor;

Programme Leader;

Personal Tutor.

 

For Whom This Course is Designed

This Course is Designed For:

 

This course is specifically designed for International Petroleum - Oil and Gas – workers and aspirants. It seeks to provide the degree of Continuous Professional Development (CPD) that Accounting and Finance, and related, Workers need to enhance their Professional Competence, providing the basis for their heightened career Prospect within the Upstream International Petroleum – Oil and Gas –Sector. It, therefore, expects to be utilised by a wide group of workers, incorporating, but not limited to, the following:

Asset Accountants;

Chief Accountants;

External Auditors;

Finance Directors and Managers;

Financial Accountants:

Financial Analysts;

Financial Controllers;

Fund Managers;

Government Regulators;

Internal Auditors;

Joint Venture Accountants;

Management Accountants;

Oil and Gas Investors;

Public Accountants;

Treasury Auditors:

Treasury Managers;

Treasury Officers;

Upstream Oil and Gas Regulators;

Venture Capitalists;

Those preparing for the beginning of drilling for,  production and production enhancement of oil and gas in their countries;

Those others who have a genuine desire to enhance their employability career prospects  within the Upstream International Petroleum – Oil and Gas – Sector.

 

Classroom-Based Duration and Cost:

Classroom-Based Duration:

8 Days

Classroom-Based Cost:

£8,000.00 Per Delegate

Group Cost:

Varies With Group Size

Group Residential Cost:

Up To 86% Discount, Based on Numbers.

Online (Video-Enhanced) Duration and Cost

Online Duration:

16 Days @ 3 Hours Per Day

Online Cost:

£5,360.00 Per Delegate

 

 

Course Objectives

By the conclusion of the specified learning and development activities, delegates will be able to:

Deconstruct the role of finance and accounting in an Oil and Gas Organisation;

Demonstrate a heightened ability to analyse their company’s performance, as an oil and gas player or regulator;

Demonstrate a heightened understanding of salient accounting concepts and governance;

Demonstrate a heightened understanding of the differing levels of Financial Reporting Regulation and Standardization, as they apply to Oil and Gas Accounting;

Demonstrate a heightened understanding of the differing levels of regulation and standardization applied to Oil and Gas accounting;

Demonstrate the most appropriate contract formulation for Take-or-pay thresholds, accounting, transportation agreements, tariffs, reserving pipeline capacity, respectively;

Demonstrate their ability to determine the extent to which financial measurement techniques such as full cost, successful efforts and reserve recognition can be used to evaluate oil and gas producing operations;

Determine the roles and interplay of the Governments of territories containing hydrocarbon reserves, National Oil Companies, International Oil Companies, the Major Product Suppliers, the Engineering & Contracting Companies and the Service Companies,

Exhibit a heightened understanding of the requirements of International Financial Reporting Standards;

Exhibit their ability to manage risk effectively in oil and gas project contracts, averting pitfalls of key contractual clauses;

Exhibit their ability to utilise Advanced Financial Measurement Techniques such as full cost, successful efforts and reserve recognition are used to evaluate oil and gas producing operations;

Explain the international dispute resolution framework and institutions in the context of expert decisions, mediation arbitration and litigation;

Suggest the principal standard form contracts used in the industry including the North Sea LOGIC/CRINE standard form contracts and the Association of Independent Petroleum Negotiators (AIPN) standard form contracts.

 

 

Course Contents, Concepts, and Issues

Please note that the breakdown represents a guide only and not a rigid arrangement. The tutor has the right to deviate from the order, as he or she deems necessary. While we aim to cover as much as possible of the concepts and issues, it is impossible to discuss all aspects. As a Postgraduate Course, Delegates and Students are expected to conduct their own research. As for all academic and professional examination, this course assesses selected knowledge and skills area, for each course iteration (delivery). Delegates and students should take responsibility for all the contents, concepts and issues that are presented below.

 

Part 1: Accounting Concepts and Governance

 

General Accounting Concepts;

The Money Measurement Concept;

The Entity Concept;

The Going Concern Concept;

The Dual Aspect Concept;

The Accounting Period Concept;

Materiality (Proportionality) Concept;

The Conservatism Concept;

Consistency Concept;

The Realization Concept;

The Matching Concept;

The Cost Concept;

Introducing Financial Governance and Standardization Institutions;

Financial Accounting Standard Board (FASB);

The Security and Exchange Commission (SEC);

Accounting Standards Board (ASB);

International Accounting Standards Committee (IASC);

International Accounting Standards Committee Foundation (IASCF);

International Financial Reporting Standards  (IFRS);

Industry Specific Oil and Gas Accounting Standards;

Generally Acceptable Accounting Principles (GAAP) for Oil and Gas Producing Activities;

Oil Industry Accounting Committee (OIAC).

 

Part 2: Drilling Development Costs – Successful Efforts (1)

 

Income tax accounting for drilling costs;

IDC vs. Equipment;

Intangible Drilling  Costs (IDC) generally;

IDC Up to an including the installation of Christmas Tree:

Prior to Drilling;

IDC at G & G;

IDC During the Preparation of Drilling Site;

IDCDuring Drilling;

IDCin Drilling contractor’s charges;

IDC for Drilling mud, chemicals, cement, supplies;

IDCfor Fuel;

IDCfor Wages.

IDC During Well Testing;

IDCat Target depth and during completion;

IDCfor Well testing;

IDC for Perforating and cementing;

IDCfor Swabbing, acidizing and fracturing;

IDC for Labour related to the installation of subsurface equipment;

IDC for Plugging and abandoning cost – for dry wells;

IDC After Christmas tree – following completion;

IDCfor Removal of Drilling Rig;

IDC for Restoration of land and damages paid to surface owner.

 

Part 3: Drilling Development Costs – Successful Efforts (2)

 

IDCfor Wells other than Exploration and development Wells;

IDCfor extending well (see lists 1 & 2, above);

IDCincurred in drilling water supply and injection wells;

IDCincurred in drilling water and injection – where water well is being used to for exploration and development well or for injection.

Financial accounting for drilling and development costs;

Well classification:

Exploratory Well;

Service Well;

Stratigraphic Test Well.

Proved Developed Oil and Gas Reserves;

Proved Undeveloped Reserves;

Successful Efforts, Exploration Costs;

 Exploratory Drilling Costs;

 Development Drilling Costs;

 Stratigraphic Test Wells;

 AFE’s And Drilling Contracts;

Costs associated with Special Drilling Operations and Problems;

Costs of Workovers;

Costs of Damaged or lost equipment  and materials.

 

Part 4: Drilling Development Costs – Successful Efforts (3)

 Costs of Fishing and side tracking;

Costs of Abandonment of portions of wells;

Accounting for Additional Development Costs;

Accounting for Development costs;

Accounting for Costs of gaining access and preparing well location for drilling;

Accounting for Costs of drill and equip development well, development-type Stratigraphic test well;

Accounting for Cost of acquiring , constructing and installing production facilities, e.g. lease;

Support Equipment and Facilities;

 Drilling and Development Seismic;

Post-Balance Sheet Events;

Accounting for suspended well costs;

Interest capitalization;

Offshore and international operations;

Problems and Issues associated with Successful Efforts Accounting for Drilling Development Cost.

 

Part 5: Proved Property Cost Disposition – Successful Efforts

 

Accounting for Costs of Property;

Accounting for Cost of Lease and Well Equipment;

Accounting for Cost Disposition Through Amortization;

Cost Disposition Through Amortization of Reserves Owned or Entitled;

DD&A Calculation;

DD&A on a Field-Wide Basis;

DD&A When Oil and Gas Reserve Are Produced Jointly;

Estimated Future Dismantlement, Site Restoration, and Abandonment Costs;

Exclusion of Costs or Reserves;

Depreciation of Support  Equipment and Facilities;

Cost Disposition – Nonworking Interests;

Revision of DD&A Rates;

Cost Disposition through Abandonment or Retirement of Proved Property;

Successful Efforts Impairment;

 

 

Part 6: Full Cost Accounting

 

Principles of Full Cost Oil and Gas Accounting;

Disposition of Capitalized Costs;

Inclusion of estimated future development expenditures;

Inclusion of estimated future decommissioning costs;

Exclusions of costs;

Impairment of unproved properties costs;

Abandonment of properties;

Reclassification of properties;

Support equipment and facilities;

DDA&A under successful efforts versus full cost;

Reserves In Place – Purchase;

Interest Capitalization;

Limitation on Capitalized Costs – A Ceiling;

Limitation on Capitalized Costs for Asset retirement obligations;

Limitation on Capitalized Costs for Deferred taxes;

Limitation on Capitalized Costs for Income tax effects;

Assessment of the ceiling test;

SFAS No. 144 and Full Cost Ceiling Cost;

Post-balance sheet events and the ceiling test;

Problems and Issues associated with Full Cost Accounting.

 

Part 7: Accounting for Production Activities (1)

 

Accounting Treatment for Production Activities, generally;

Accounting for Cost of production versus inventory;

Accounting for Recognition of Inventories;

Lower-of-cost-or-market valuation;

Accumulation and allocation of costs;

Accounting for  Individual production costs;

Accounting for Secondary and Tertiary recovery;

Accounting for Gathering systems;

Accounting for Saltwater disposal systems;

Accounting for Tubular goods;

Accounting for Severance taxes.

 

 

Part 8: Accounting for Production Activities (2)

 

Production Cost Statements;

Joint Interest Operations;

Decision to Complete a Well;

Project Analysis and Investment Decision Making;

Investment Decision based on Payback method;

Investment Decision based on Accounting Rate of Return;

Investment Decision based on Net Present Value;

Investment Decision based on Internal Rate of Return;

Investment Decision based on Profitability index;

Problems and Issues associated with Accounting For Production Activities.