Programme Number 163 -
Advanced Oil and Gas Accounting: International Petroleum
Accounting Programme, incorporating International
Petroleum Operation, Leading to Postgraduate Diploma in
Advanced Oil and Gas Accounting: International Petroleum
Accounting.
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
Programme is Designed
While Petroleum – Oil and Gas – Exploration, Development and
Production appear to be at their peak in a number of countries,
there are others where they are at the growth stage, some such as
Uganda, are still at the exploration stage, with development, and
subsequent production, expected to commence within the next few
months. While Shale Gas Exploration is in its advanced stage in the
UK, its Development and Production have achieved economic prominence
in countries such as Algeria, Argentina, Australia, Brazil, Canada
(which has also been expanding it Oil Sands Production), China,
Indonesia, Mexico, Russia, South Africa, and United States.
This Programme seeks to equip students with a Postgraduate Diploma,
which will greatly enhance their employability and career
advancement within the International Petroleum – Oil and Gas –
Industry. The 3 Months Intensive Full-Time Programme leads to a
Postgraduate Diploma in Advanced Oil and Gas Accounting:
International Petroleum Accounting, with Progression to .Advanced
Oil and Gas Accounting: International Petroleum Accounting. This
Postgraduate Diploma Programme is, therefore, designed for:
Aspirants
to employment
within the International Petroleum – Oil and Gas – Industry;
Asset Accountants;
Chief Accountants;
Chief Executives;
Cost Accountants;
Drilling & Refinery Managers;
Energy Ministry Personnel;
Engineers;
Finance Directors;
Finance Managers;
Financial Accountants;
Financial Analysts;
Financial Controllers;
Geologist;
Government Ministers;
Government Regulators;
Internal and External Auditors;
International Petroleum – Oil and Gas – Workers seeking to
enhance their career prospects within the industry;
Joint Venture Accountants;
Legal Personnel interested in developing expertise in Mineral
Rights, Lease, Contracts and related aspects of International
Petroleum – Oil and Gas – Operation
Management Accountants;
Management Accountants;
Managing Directors;
Marketing & Sales Directors & Managers;
New Graduates seeking a Career Focus;
Oil and Gas Accountants desirous of acquiring expertise in Full
Cost Accounting
and Successful Efforts Accounting Methods;
Petroleum Department Personnel;
Public Accountants;
Revenue and Custom Representatives;
Treasury Officers;
Venture Capitalists;
Others interested in the operation of the Oil and Gas Industry,
its regulation, exploration, production, and accounting systems.
Classroom-Based Duration and Cost: |
Classroom-Based Duration: |
12 Weeks |
Classroom-Based Cost: |
£45,00000
Per Delegate |
Group Cost: |
Varies With Group Size |
Online Synchronous (Video-Enhanced) Duration and
Cost |
Online Duration: |
20
Weeks @ 3 Hours Per
Day, 6 Days per Week |
Online Cost: |
£30,150.00
Per Delegate |
The
Classroom-Based Course cost does not include living accommodation. However,
students and delegates are treated to the following:
Free Continuous snacks throughout the Event Days;
Free Hot Lunch on Event Days;
Free City Tour;
Free Stationery;
Free On-site Internet Access;
HRODC Postgraduate Training Institute’s Diploma – Postgraduate; or
Certificate of Attendance and Participation – if unsuccessful on
resit.
Delegates will be Treated to a Selection of Our Branded
Complimentary Products, which include:
Leather Conference Folder;
Leather Conference Ring
Binder/ Writing Pad;
Key Ring/ Chain;
Leather Conference (Computer
– Phone) Bag – Black or Brown;
8-16 GB USB Flash Memory Drive,
with Course/ Programme Material;
Metal Pen;
Polo Shirt;
Carrier Bag.
Location:
Central London and International Locations
Programme for Advanced Oil and Gas Accounting:
International Petroleum Accounting |
Leading to Postgraduate Diploma in Advanced Oil and
Gas Accounting: International Petroleum Accounting |
Number |
Module Title |
Credit Value |
036 |
Upstream Oil and Gas Accounting and Contracts: Oil and
Gas Operation, Mineral Rights, Leases and Successful
Efforts Accounting |
Single |
046 |
Advanced Oil and Gas Accounting: International Petroleum
Accounting (1) |
Single |
047 |
Advanced Oil and Gas Accounting: International Petroleum
Accounting (2) |
Single |
048 |
Advanced Oil and Gas Accounting: International Petroleum
Accounting (3) |
Single |
107 |
SAP and Joint Venture Accounting |
Double |
161 |
International Oil and Gas Industry : Strategic and
Financial Management |
Quad |
162 |
Oil Price Determinants: Setting the Price of Oil in
Today’s Market |
Double |
By
the conclusion of the specified learning and development
activities, delegates will be able to:
(M1)
Demonstrate an understanding of the oil and gas industrial
and the activities of each subsector;
Demonstrate an awareness of the salient issues associated
with the development of the United States oil and gas
industry, as a mark car to International oil and gas
exploration developments and it mining operations;
Address the geological issues relating to the origin,
exploration and production of oil and gas;
Outline the methods of production, employed in the oil and
gas industry;
Describe the methods of exploration generally used within
the oil and gas industry;
Explain the contractual issues that are associated with
oil, gas and mineral lease;
Address problems and issues associated with upstream oil
and gas operation;
Outliner the role of finance and accounting in an Oil and
Gas Organisations;
Demonstrate an appreciation of financial reporting policies
and practices applicable in Oil and Gas Industry;
Distinguish between the different types of wells;
Distinguish between natural and artificial lifts, in oil and
gas production;
Demonstrate a working knowledge of Amortization, with
particular reference to the oil and gas industry;
Work through examples of Amortization of exploration and
development costs of proved developed reserves;
Accurately account for ‘Disposition’ of capitalized costs,
in reference to the impairment of unproved properties;
Appropriately address Disposition of capitalized costs from
the surrender or abandonment of property;
Distinguish between 3D and 4D Seismic;
Explain, with examples, Overriding Royalty Interests (ORI);
Distinguish between Mineral Rights, Mineral Interests and
Fee Interests;
Discuss, with examples, the benefits and drawbacks of
nonworking interest;
Distinguish between Non-drilling and Drilling Costs;
Appropriately apportion costs to non-drilling and drilling
operations, respectively;
Explain the basic principles of Successful Efforts
Accounting in Oil and Gas;
Demonstrate mastery of the concepts and issues associated
with exploration and drilling operation; and
Explain, with minor omissions, the processes involved in oil
and gas acquisition, exploration and mining.
(M2)
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 salient accounting
concepts and governance
Demonstrate a heightened understanding of the differing
levels of regulation and standardization applied to Oil and
Gas accounting;
Deconstruct the role of finance and accounting in an Oil and
Gas Organisation;
Exhibit a heightened understanding of the requirements of
International Financial Reporting Standards;
Demonstrate a heightened ability to analyse their company’s
performance, as an oil and gas player or regulator;
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;
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;
Exhibit their ability to manage risk effectively in oil and
gas project
contracts, averting pitfalls of key contractual clauses;
Demonstrate the most appropriate contract formulation for
Take-or-pay thresholds, accounting, transportation
agreements, tariffs, reserving pipeline capacity,
respectively;
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,
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;
Explain the international dispute resolution framework and
institutions in the context of expert decisions, mediation
arbitration and litigation.
(M3)
Determine to what entity is SFAS 143 applicable;
Identify the results of legally enforceable obligations;
Site examples of AROs where the company is normally legally
obligated;
Know what should be considered in identifying obligating events
that require recognition of an asset retirement obligation;
Determine the effect of initial recognition of asset retirement
obligation liability;
Learn that ARO must be initially measured based on fair value in
compliance with SFAS No. 143;
Distinguish the traditional approach from Expected cash Flow
Approach;
Define a credit-adjusted risk-free rate;
Explain the concept of market risk premium;
Find out when companies should recognise the changes in the
liability for the retirement asset obligation resulting from the
passage of time or revision to either the timing or the amount
of the original estimated future cash flows;
Discuss how the changes in the asset retirement obligation due
to the passage of time should be measured;
Learn how accretion expense is computed through the interest
method of allocation.
Know when loss or gain recognised upon settlement of ARO;
Determine how changes due to revised estimates of the amount or
timing of the original undiscounted cash flows are recognised;
Know how frequently an ARO should be assessed to determine
whether a change in the estimate of the ARO is necessary;
Determine the effects of the existence of a fund or provision of
assurance by a firm that it will be able to satisfy its asset
retirement obligations;
Explain conditional AROs;
Identify what must be disclosed by a company reporting a
liability for its asset retirement obligations;
Determine the applicability of SFAS No. 144;
Classify assets according to its group;
Define “impairment” in accordance with SFAS no. 144 definition;
Determine whether a long-lived asset to be held and used is
impaired and explain the three-step approach to recognise and
measure an impairment loss;
Cite circumstances that may trigger impairment testing;
Know when a company is requires to test long-lived asset for
recoverability;
Establish how impairment is measured;
Ascertain the accounting and reporting requirements related to
long-lived assets that are to be disposed of either by sale,
abandonment or exchange for other productive assets;
Determine when long-lived assets to be sold are still classified
as “held for sale”;
Determine inclusions in the term” component of an entity” in
relation to disposal group;
Define the following concepts:
API
gravity
BS &
W
Btu
Casing head gas
Casing head gas.
City
gate
Commingled gas.
Dissolved gas
Field facility
Gas
balancing agreement
Gas
settlement statement
Gauging
Heater-treater
LACT
unit
Local distribution company (LDC)
Mcf
Natural gas
Non-associated gas
Tapping
Thief
Tank
strapping
Separator
Explain the importance of the measuring process to the
accountants;
Identify the process in measuring crude oil;
Recognise the importance of run ticket calculation and describe
the process used to complete a run ticket determine a net volume
from a tank run;
Determine the changes in crude oil marketing and differentiate
the marketing adopted in the past with the present;
Distinguish the process involved in natural gas measurement from
oil measurement;
Know
the present method
of selling natural gas
as distinguish from the method employed in the past;
View an example of
division contract;
Determine the correct
division of the revenue from sale of oil and gas among owners of
economic interest according to the ownership interest shown on
the division order;
Be familiar with the
process involved in unitization of properties;
Determine who is
responsible for paying the severance taxes, the royalty owners
and other owners of economic interest;
Give the step-by-step
process in recording oil revenue;
Cite the usual reason
of producing companies for exchanging crude oil;
Know the importance of
converting gas measurements to MMBtu and to Mcf for purposes of
recording gas revenue;
Ascertain the
appropriate thing to do to allow venting or flaring of gas;
Determine the condition
required to allow selling of unprocessed natural gas;
Discuss the procedures
involved in natural gas processing;
Know the importance of
gas storage;
Find out the
requirement of contracts with take-or-pay provisions;
Know when revenue of
crude oil and natural gas sales should be recognised;
Know when, who and how
payments to royalty owners and other owners of economic interest
are made;
Discuss about gas
imbalances;
Differentiate produces
gas imbalances from pipeline gas imbalances;
Discern how oil and gas
are allocated;
Determine what causes
payment of minimum royalty;
Enumerate the different
nondrilling costs;
Know the accounting
treatment for acquisition costs;
Know the tax treatment
of costs related to drilling operations;
Specify some typical
lease and well equipment;
Categorise the revenue
arising from the production and sale of oil and gas products;
Identify the two
important expenses connected with lifting and treating the oil
and gas and differentiate one from the other;
Enumerate the
situations under which losses from unproductive property may be
taken for tax purposes;
Discuss the concept of
percentage depletion and give the circumastance under which it
is allowed;
Determine what areas of
oil and gas are applicable to “property”;
Know what IDCs are
recaptured as ordinary income;
Know how acquisition
costs should be treated;
Know how revenue by a
lessor as his share of production is treated;
Cite the importance of
joint operations in oil and gas exploration and production;
Identify the different
types of contracts that may be involved in joint operations;
View a model form of
operating agreement;
Define the following
terms used in the contract that are frequently subject to
questions or interpretation:
Affiliate
Agreement
Controllable Material
Equalized Freight
Excluded Amount
Field Office
First level Supervision
Joint Account
Joint Operations
Joint property
Laws
Material
Non-Operators
Offshore Facilities
Off-site
On-site
Operator
Parties
Participating Interest
Participating party
Personal expenses
Railway receiving point
Shore base facility
Supply store
Technical Services
Identify the inclusions
in statement and billings to be provided by the operator to all
nonoperators;
Explain “cash calls” or
advanced payment by the nonoperators;
Determine the period
adjustments to billing or cash advance may be made;
Determine the period
when expenditure audits may be allowed;
Explain the provision
on approvals of parties;
Explain the necessity
of allocations in the course of joint operations;
Discuss the following
costs that are normally treated as direct costs in various COPAS
accounting procedures:
Rentals and royalties
Labour
Material
Transportation
Services
Equipment and
facilities furnished by operator
Affiliates
Damages and losses to
joint property
Legal Expense
Taxes and permits
Insurance
Communications
Ecological,
Environmental, and Safety
Abandonment and
reclamation
Other expenditure
Enumerate the three
types of overhead (Indirect Cost);
Differentiate the two
methods of computing overhead – Fixed rate or percentages basis;
Differentiate
construction overhead form catastrophe overhead;
Discuss the pricing of
joint account material purchases, transfer and dispositions.
Explain the different
special pricing provisions;
Know the importance of
maintaining a detailed record of controllable materials and the
conduct of regular physical inventories;
Determine the situation
when special inventory is required;
Identify the different
direct charges for purposes of joint interest accounting;
Explain how
proportionate consolidation methods in joint ventures are done,
through:
Booking charges to the
joint account: accumulation of joint costs in operator’s regular
account
Booking charges to the
joint account: distribution of joint costs as incurred;
Know what triggers the
occurrence of nonconsent operations; and
Determine how materials
purchased are charged.
(M4)
Determine the three (3) basic methods of conveying mineral
interest;
Distinguish between operating (working) interests and
nonoperating (nonworking) interests;
Differentiate basic working interest and joint working interest;
Define Basic Royalty Interest (RI), Royalty Interest (ORI),
Production Payment Interest (PPI) and Net Profits Interest;
Summarise the conveyance rules contained in SFAS No. 19;
Cite the requirements of SFAS No. 153 for “Exchanges of
Nonmonetary Assets”;
Identify the transactions considered as farm-out;
Define the terms farm-in and farm-out;
Discuss the concept of farms-in/farms-out with a reversionary
working interest;
Specify the accounting treatment for a free well arrangement;
Determine under what situation sole risk arises;
Identify who is considered as a carried interest or carried
party in a sole risk;
Describe a situation considered as a joint venture under
paragraph 47e of SFAS No. 19;
State the effect of pooling and unitization;
Distinguish pooling from unitization;
Give the purpose of unitization;
Compute barrels for payout, proved reserves and proved developed
reserves;
Determine what are involved in the sale of oil and gas property;
Summarise the accounting treatment of the sales of oil and gas
properties;
Discuss the accounting treatment of a sale of the entire
interest in an unproved property;
Specify the special accounting treatment given to sales of
partial interest in an unproved property;
Know when loss and gain are recognised in sales of an entire
interests in a proved property;
Give an example illustrating the accounting procedure for proved
property sales;
Indicate the accounting treatment for sales of partial interest
in proves property;
Know how loss or gain is determined when the entire working
interest in a proved property is sold and a nonworking interest
is retained;
Explain how production payment interest is created;
Discuss the accounting treatment for retained production
payment;
Know what the seller and buyer must do when the retained
production payment is reasonably assured;
Know how the conveyance is treated in case the retained
production payment is not reasonably assured;
Cite the effect of curved-out production payment to the working
interest owner;
Specify the concept of carved-out production payment payable in
money;
Discuss the concept of carved-out production payments payable in
product or volumetric production payment;
Compare the treatment of conveyances under successful efforts
and full cost accounting;
Identify the companies required to present disclosures under
SFAS No. 69 and discuss the applicable rules in such disclosure;
Identify the test in determining whether an enterprise is having
significant oil and gas producing activities for purposes of the
application of the disclosure requirement;
Enumerate the information required to be disclosed by publicly
traded companies in their annual financial statements;
Distinguish between deterministic and probabilistic reserve
estimation methodology;
Identify the type of reserve that may be reported under SFAS No.
69;
Define the term “reserve”;
Compare developed proved reserve and undeveloped proved reserve;
Explain why SFAS required the use of year-end price in
estimating reserve;
State the purpose of reserve quantity disclosure;
Determine how and what are included in the disclosure of
capitalised cost relating to oil and gas producing activities;
Cite the importance of disclosing information about property
acquisition, exploration and development activities;
Give the relevance of the disclosure of the results of
operations for oil and gas producing activities;
Explain the concept of Standardised Measure of Discounted Future
Net Cash Flows Relating to Proved Oil and Gas Reserve
Quantities;
Enumerate the sources of change required to be reportedly
separately if individually significant;
Analyse the reason for changes under the following:
Sales and transfers
Extensions, discoveries, and improved recovery
Estimated future development costs
Development costs incurred during the period that reduce future
development costs
Revision Quantity
Accretion of discount;
Give examples of payment considered as fiscal system;
Explain concessionary system and give the obligations and rights
of parties therein;
Identify the owner of the tile the oil or gas under the
concessionary system;
Identify the parties in a concessionary agreement;
Determine the extent of the participation if the government in
concessionary agreements;
Describe the applicable rules under the contractual system;
Identify the role of the government in a contractual system;
Know what triggered the existence of production sharing contract
(PSC);
Specify the common feature of concessionary agreements and PSC;
Define a signing or signature bonus and production bonus;
Explain why the inclusion of royalty provision is considered as
an interesting feature of production sharing contracts;
Know how some PSC’s allowed the government to participate in
oil and gas projects;
Enumerate the information required to be specified under the
contract relative to cost recovery;
Enumerate the common order of cost recovery;
Explain what constitute profit oil or profit gas;
Explain capital uplifts, ringfencing, domestic market obligation
and royalty holidays and tax holidays;
Distinguish between risk service contracts and nonrisk service
contracts;
View a model form of international joint operating agreement;
Differentiate recoverable and non-recoverable costs;
Differentiate financial accounting and contract accounting;
Enumerate the issues to be resolved to compute entitlement
reserves;
State the importance of reporting the company’s net prove
reserves separately;
Explain the relevance of International Financial Reporting
Standards (IFRS) in addressing accounting issues in the upstream
oil and gas industry;
Give the difference between the financial statements of an oil
and gas industry with the other industries;
Identify the primary source of data necessary to compute most of
the ratios unique to oil and gas companies;
Cite the different purposes in evaluating financial statements
and other reports;
Determine the relevance of benchmarking in the oil and gas
industry;
Specify the functions of reserve replacement ratio;
Specify the function of reserve life ratio;
Define gross wells and net wells;
Determine the use of ratio of net wells to gross wells;
Know how average reserves per well ratio evaluate a company’s
future profitability;
Compute the daily production per well;
Identify the basis of reserve cost ration;
Determine what makes calculating and using the finding cots per
BOE (based on energy content) ratio difficult;
Know the basic formula for computing BOE;
Distinguish DD&A from lifting costs;
Be familiar with the formula for computing value of proved
reserve additions per BOE;
Know the importance for maximising the value added ratio;
Enumerate the different ratios that are frequently used in the
financial statement analysis;
Determine the formula for the following:
Current ratio
Quick ratio
Working capital
Debt to stockholders equity
Debt to assets
Times interest earned
Net income to sales
Return on stockholder’s equity
Return on assets
Cash flow from operations to sales
Price/earnings ratio
Price/cash flow ration
(M6)
Understand the operations of the Oil and Gas Industry in
international perspective;
Understanding Oil and Gas Reserves;
Analyse the current status of oil and gas industry in the global
economy in the following aspects:
Oil and Gas Supply;
Industry Financial Performance;
The Role of Organization of Petroleum Exporting Countries
(OPEC);
The Resource Curse;
Players in the oil and gas industry;
International Oil Companies (IOCs);
National Oil Companies (NOCs);
The Strategic Goals of IOCs and NOCs;
Independents;
Other Firms;
Outline the Oil and Gas Industry Value Chain;
Distinguish upstream, midstream and downstream oil and gas
company;
Determine some effective Business Strategy adopted by the oil
and gas sectors;
Know how the oil and gas industry has evolved over the years;
Specify the innovation introduced in the oil and gas sector and
the technology utilised therein;
Explain the concept of mergers and acquisitions in the oil and
gas industry;
Name some industry substitutes and alternative fuels used in the
industry;
See the future of the global oil and gas industry;
Specify the role and value of oil and gas in terms of national
security and national wealth;
Determine the interest of the Government and Corporation in the
oil and gas companies;
Discover how National Oil Companies (NOCs) had evolved;
Establish the relationship between NOC and IOC;
List the Strategic Interest of IOCs and NOCs;
Understand the founding principles, market share and emerging
strategy of the Organization of Petroleum Exporting Countries
(OPEC);
Discuss the issue regarding curse of oil;
Identify the countries afflicted by the curse;
Explain the economics of the curse of oil;
Suggest ways to avoid the curse of oil;
Analyse the domestic politics of oil and gas;
Learn how Project Opportunities are developed, particularly in
terms of:
Project Evaluation Process;
Project Life-Cycle Reviews;
Explain the concept of joint development in the oil and gas
industry;
Perform project financial and risk analysis;
Enumerate the steps involved in project execution;
Learn how to handle contractor relationships;
Know the interrelated nature between Contractor Relationships
and Supply Chain;
List the types of contractor relationships;
Learn how to attain a successful contractor relationships in
terms of:
Evaluating the Environmental Impact;
Assessing the Socioeconomic Impact;
Managing Safety;
Learn how to deal with problems in project development and
suggest ways to avoid or resolve them;
Define the reproduction costs and production cost as used in the
upstream oil and gas company;
Determine the accounting process employed for upstream costs;
Explain the concepts of ED&P and the Cost of Business;
Analyse the performance and the strategies employed by oil and
gas companies to gain competitive advantage;
Understand the following terms in oil economics:
Break-Even;
Multiple Products;
Working Interest;
Taxes;
Valuing Production on a Per Barrel Basis;
Discuss strategic cost management in the oil and gas industry;
Discuss the concept of field reinvestment and renewal,
specifically in terms of:
Production Enhancement;
Enhanced Recovery Costs;
Mature Field Valuation;
Continuous Learning.
Learn how to manage contractor supply chain;
Determine the bargaining power available to the contractor;
Learn how to deal with joint venture conflict and suggest ways
to avoid or resolve them;
Learn how operated-by-others projects are managed;
Understand learning and knowledge sharing in joint ventures;
Know how to manage political risk;
Determine the technology innovations in the upstream oil and gas
industry;
Explain the innovations in technology and cost control;
Identify the Chevron cost control;
Learn how to develop agreements relevant to oil and gas
projects;
Find out how the right to develop a project is achieved;
Determine the petroleum fiscal regimes;
Define, Explain and give the importance of the following added
contractual features:
Signature Bonuses;
Domestic Market Obligations;
Investment Uplifts;
Stabilization Clause;
Name the Top-Line Risks in the petroleum industry;
Relate the evolution of PSA;
Identify the fiscal regime in the oil and gas sector;
List some government and policy changes relative to the oil and
gas industry;
Learn the following aspects of Business Financing in the oil and
gas industry:
Basic Balance Sheet;
Managerial Balance Sheet;
Funding the Firm;
Revenue and Earnings;
Financial Performance;
Performance and Creditworthiness;
Windfall Profit;
Be familiar with the following capital sourcing for the oil and
gas industry:
Corporate Finance;
Public Equity;
Private Equity;
Venture Capital;
Debt;
Project Finance;
Multilateral Lending;
State Interest;
Oil Loans;
Petroleum Finance.
Differentiate E&P firms from downstream oil and gas;
Explain the concept of ruminations on valuation;
Know the chemistry and form of natural gas;
Demonstrate a heightened understanding about natural gas
reserves, fields and production;
Identify the use of natural gas and its markets;
Learn the fundamentals gas pricing;
Know how gas and oil are traded and marketed;
Establish the gas-to-oil linkage;
Learn about the integrated LNG project;
Determine how LNG is priced and marketed;
Discuss about LNG break-even;
Analyse some LNG case study;
Be familiar with the concept of Gas to Liquids (GTL);
Be knowledgeable about the demand, supply and transportation
costs of crude oil;
Summarise the history of crude price;
Describe the two crude price eras;
Establish the link between crude oil and commodity;
Learn the Benchmarking strategies of crude oil producer company;
Know how the price of Crude Oil is determined and the
transactions involved;
Discover how oil and gas are transported;
Understand the gathering systems, construction and operation of
pipeline;
Relate the brief history of oil tankers;
Describe the evolution of tanker design;
Find out how oil tankers shift the competitive balance;
Describe the modern supertanker;
Specify the governing rules and policy in chartering a vessel;
View an example of shipping contracts;
Know the present tanker charter rates;
Identify the role, duties and responsibilities of tanker
operators;
Name some Environmental Risk posed by the transportation of gas;
Describe the downstream transportation;
Understand the concept of global refining;
Enumerate the Refining Process and state what happen in each
stage;
Demonstrate a heightened understanding about the refinery
product mix;
Learn how to Refining margins and profitability;
Ascertain how petroleum products are sold and marketed through
the different channels;
Know where gasoline at a particular station comes from;
Understand fuel standards and specifications;
Name some OIC (Oil Major) in fuels marketing;
Ascertain the determinants for the retail price of motor fuels;
Know what influence zone pricing;
Enumerate the important factors in the retail price of motor
fuels;
Explain the price elasticity of motor fuels;
Describe how motor fuel prices are politicized;
See the overview of chemical industry;
Learn about petrochemical production;
Identify some commodity and specialty chemicals;
Describe the structure of oil and gas industry;
Determine the profitability aspect of the oil and gas industry;
Explain the concept of peak oil demand, crude oil, shift to gas
and shale gas;
Identify the substitute products and renewable/alternative
energy;
See the growing demand for energy;
Evaluate the present status of price, supply and demand
volatility;
Establish the link between global market and pricing for natural
gas;
Determine the persons involved in the oil and gas industry and
their strategies in the following areas:
Environment;
Downstream and Chemicals;
Refining and Fuels Marketing;
Availability of Capital;
Deepwater Horizon Oil Spill;
Safety and Environment;
Talent Shortage.
Determine the future of oil and gas firms; and
Enumerate the powers of national companies.
(M7)
Explain the provisions of World Energy Policy.
Determine the causes and effects of the financial crisis in the
oil market.
Distinguish between fundamentals and financial
speculation.
Ascertain the present demand and supply of gasoline and
gasoil.
Wti – brent differential
Learn about the oil monopoly and the two crises in the 1970s.
Determine the reason and the effect of the gradual disappearance
of OPEC.
Discuss about the price war.
Relate the significant occurrences from the introduction of
brent as an international benchmark to the clean air act.
Describe the start of the free market and its effect to the oil
and gas industry.
Identify the consequences of the environmental turnaround
Relate how the environmental demand for gasoline evolved.
Be knowledgeable about gasoline and its components.
Explain the process of reforming, cracking, alkylation and
isomerisation.
Identify the problems and difficulties faced by the refiners.
Gain information about the fiscal policy of the industrialized
countries regarding fuels.
Determine the significant transformations in the downstream.
Discuss about the world supply structure.
Outline the classical model of the international oil market.
Outline the short-term model of the international oil market.
Analyse the Brent market
in terms of:
The sale and purchase contract
The forward market for Brent (15 day brent contract)
The IPE Brent market
The divorce between oil price and oil
Explain the concept of tax spinning.
Learn how benchmarking is performed and identify its importance.
Discuss about hedging the price risks.
Discuss
the different speculations on operational flexibilities at
loading and give your opinion about these speculations.
Distinguish between contango and backwardation market structure.
Outline the procedures at the loading terminals.
Learn how to deal with the problems of the Brent forward market.
Find
out the causes of the crisis in European refinery.
Programme Number 163 - Advanced Oil and Gas Accounting:
International Petroleum Accounting, Intensive Full-Time {3 Months (5
Days -30 Hours) per Week} Programme, Leading to Postgraduate Diploma in
Advanced Oil and Gas Accounting: International Petroleum Accounting.
Click to download the PDF Brochure for this Course.
Programme Contents, Concepts and Issues
Module 1
Upstream Oil and Gas Accounting and Contracts: Oil and Gas
Operation, Mineral Rights, Leases and Successful Efforts Accounting
Part 1: Upstream Oil and Gas Operations
Introducing the Oil And Gas Industry
Brief History of the U.S. Oil and Gas Industry
Origin of Petroleum
Anticline
Exploration methods and procedures
3-D Seismic
4-D Seismic
Acquisition of mineral interests in property
Mineral Rights
Mineral Interests
Fee Interests
Overriding Royalty Interests (ORI)
Retained ORI production payment Interest (PPI)
Dutch Carved-out production payment
Carved-out net profits interest created from working interest
Net profits interest created from mineral interest
Oil, Gas and Mineral Lease Provisions
Lease bonuses
Royalty provision
Primary term
Delay Rental Payment
Shut-In payment
Right to Assign Interest
Right to free use of resources for lease operations
Option payment
Offset Clause
Addressing problems and issues associated with upstream oil and
gas operation
Part 2: Introduction to Oil and Gas Accounting (1)
Oil and Gas Drilling Operations
BOP (blowout preventer)
Bottom-hole pressure
Bottom-hole pump
Drill string
Rat hole
Mouse hole
Drilling platform
Drilling rig
Proved area
Drill stem test
Derek and Derek Hands
Cracking
Field
Christmas tree
Sedimentary rock
Seismic exploration
Development well Flowing well
Injection well
Offset well
Stratigraphic Well
Part 3: Introduction to Oil and Gas Accounting (2)
Stratigraphic Test Well
or Exploratory well
Service well
Dry hole
Dual completion
Dry natural gas
natural and artificial lifts
Oil and Gas production and Sales
Some State and US Federal Oil and Gas Drilling Regulation
Maximum Efficiency Drilling Rate (MER)
The Concept of Peak Oil
Historical cost accounting methods
Historical Development of accounting methods and current status
Introduction to successful efforts accounting
Chart accounts for successful efforts company
Oil and Gas subsectors – Upstream, Mid-Stream and Downstream
Horizontal, Vertical and Full Integration within the Oil and Gas
Industry.
Addressing Problems associated with Oil and Gas Accounting
Part 4: Non-drilling Exploration Costs – Successful Efforts
Introduction to Full Cost (FC)
Accounting
Distinguishing between Non-drilling
and Drilling Costs
Cost of Identifying areas that
might warrant exploration
Cost of topographical, geological
and geophysical studies
Cost of carrying and retaining
undeveloped properties
Dry hole contribution
Cost of drilling and equipping
exploratory well
Cost of drilling exploratory type
Stratigraphic test well
Successful Efforts– Exploration
Cost
Accounts for a full cost company
G&G costs
Reconnaissance survey
Detailed Survey
Shooting Rights
Obtaining G & G Permits
Exchanging C & G Studies for
Property Interest
Part 5: Acquisition Costs of Unproved Property – Successful Efforts
Carrying and retaining costs
Delayed Rental Property Taxes
Legal cost for title defense
Clerical and record-keeping costs
Test-well contributions
Dry hole contribution
Bottom-hole contribution
Support equipment and facilities
Problems
Offshore and International
operations
Purchase in fee (Fee Purchase)
Internal costs
Options to lease
Delinquent taxes and mortgage
payment
Part 6: Acquisition Costs of Unproved Property – Successful Efforts
Successful Efforts Acquisition Costs
Internal Costs
Options to lease
Delinquent tax and Mortgage Payments
Top Leasing
Amortization
Amortization of exploration and development costs of proved
developed reserves
Impairment
Disposition of capitalized costs – impairment of unproved
properties
Disposition of capitalized costs – surrender or abandonment of
property
Post balance sheet events
Disposition of capitalized costs – reclassification of an
unproved property
Land department
Addressing Issues and Problems in unproved property acquisition
costs
Module 2
Advanced Oil and
Gas Accounting: International Petroleum Accounting (1)
Part 1: 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
Part 2: 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 3: Drilling Development Costs – Successful Efforts
Income tax accounting
for drilling costs
IDC vs. Equipment
Intangible Drilling Costs (IDC)
Up to an including the installation
of Christmas Tree
Prior to Drilling
G & G
Preparation of Site
During Drilling
Drilling contractor’s charges
Drilling mud, chemicals, cement,
supplies
Fuel
Wages
Well testing
At Target depth and during
completion
Well testing
Perforating and cementing
Swabbing, acidizing and fracturing
Labour related to the installation
of subsurface equipment
Plugging and abandoning cost – for
dry wells
After Christmas tree – following
completion
Removal of Drilling Rig
Restoration of land and damages
paid to surface owner
Wells other than Exploration and
development Wells
Intangible costs for extending well
(see lists 1 & 2, above)
Intangible costs incurred in
drilling water supply and injection wells
Intangible costs incurred 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
Special drilling operations and
problems
Workovers
Damaged or lost equipment and
materials
Fishing and side tracking
Abandonment of portions of wells
Additional development costs
Development costs
Costs of gaining access and
preparing well location for drilling
Costs of drill and equip
development well, development-type Stratigraphic test well
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 4: Proved Property Cost Disposition – Successful Efforts
Costs of Property
Cost of lease and well equipment
Cost disposition through
amortization
Reserves owned or entitled to
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
Problems
Part 5: 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
Asset retirement obligations
Deferred taxes
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 6: Accounting For Production Activities (1)
Accounting treatment
Cost of production versus inventory
Recognition of inventories
Lower-of-cost-or-market valuation
Accumulation and allocation of
costs
Individual production costs
Secondary and Tertiary recovery
Gathering systems
Saltwater disposal systems
Tubular goods
Severance taxes
Part 7: Accounting For Production Activities (2)
Production cost statements
Joint interest operations
Decision to complete a well
Project analysis and investment
decision making
Payback method
Accounting rate of return
Net present value method
Internal rate of return
Profitability index
Problems and Issues associated with
Accounting For Production Activities
Module 3
Advanced Oil and
Gas Accounting: International Petroleum Accounting (2)
Part 1: Accounting For Asset Retirement Obligations and Asset
Impairment
Accounting For Asset Retirement
Obligations
Scope Of SFAS No. 143
Legally Enforceable Obligations
Obligating Event
Asset Recognition
Initial Measurement – Fair Value
Traditional Approach
Expected Cash Flow Approach
Credit-Adjusted Risk-Free Rate
Market Risk Premiums
Subsequent Recognition and
Measurement
Changes Due to the Passage of Time
Interest Method of Allocation
Funding and Assurance Provisions
Gain or Loss Recognition Upon
Settlement
Changes Due to the Revisions in
Estimates
Reassessment
Funding And Assurance Provision
Conditional AROs
Reporting And Disclosures
Accounting for the Impairment and
Disposal of Long-Lived Assets
Scope
Asset Groups
Long-Lived Assets to be Held and
Used
Indications of Impairment
Testing For Recoverability
Measuring Impairment
Long-Lived Assets To Be Disposed
of:
Long-Lived Assets To Be Disposed of
Other Than by Sale
Long-Lived Assets To Be Disposed of
By Sale
Disposal Groups
Impairment For Full Cost Companies
Problems and Exercises Associated
With Accounting for Asset Retirement Obligations and Asset
Impairment
Part 2: Accounting For Revenue from Oil and Gas Sales
Definitions
API Gravity
BS & W
Btu.
Casing Head Gas
Casing Head Gas.
City Gate
Commingled Gas.
Dissolved Gas
Field Facility
Gas Balancing Agreement
Gas Settlement Statement
Gauging
Heater-Treater
LACT Unit
Local Distribution Company (LDC).
Mcf
Natural Gas
Non-Associated Gas
Tapping
Thief
Tank Strapping
Separator
Measurements and Sale of Oil and
Natural Gas
Crude Oil Measurement
Run Ticket Calculation
Crude Oil Sales
Natural Gas Measurement
Natural Gas Sales
Standard Division Order
Determination Of Revenue
Utilizations
Oil And Gas Revenue
Recording Oil Revenue
Crude Oil Exchanges
Recording Gas Revenue
Vented or Flared Gas
Non-Processed Natural Gas
Natural Gas Processing
Stored Natural Gas
Take-Or-Pay Provisions
Timing of Revenue Recognition
Revenue From Crude Oil
Revenue From Natural Gas
Revenue Reporting To Interest
Owners
Additional Topics
Gas Imbalances
Producer Gas Imbalances
Pipeline Gas Imbalances
Allocation of Oil and Gas
Minimum Royalty – An Advance
Revenue to Royalty Owners
Addressing Problems and Issues
Associated with Accounting for Revenue from Oil and Gas Sales
Part 3: Pertinent Oil and Gas Tax Accounting
Lessee’s Transactions
Non-Drilling Costs
Acquisitions Costs
Drilling Operations
Equipment Costs
Production Operations
Losses From Unproductive
Percentage Depletion
Property
Recapture of IDC and Depletion
Lessor’s Transactions
Acquisition Costs
Revenue
Addressing Problems And Issues Associated With Basic Oil And
Gas Tax Accounting
Part 4: Joint Interest Accounting
Joint Operations
Joint Venture Contracts
The Joint Operating Agreement
The Accounting Procedure
General Provisions: Accounting
Procedure - Definitions
Affiliate
Agreement
Controllable Material
Equalized Freight
Excluded Amount
Field Office
First Level Supervision
Joint Account
Joint Operations
Joint Property
Laws
Material
Non-Operators
Offshore Facilities
Off-Site
On-Site
Operator
Parties
Participating Interest
Participating Party
Personal Expenses
Railway Receiving Point
Shore Base Facility
Supply Store
Technical Services
Statements and Billings
Advances and Payments by Parties
Adjustments
Expenditure Audits
Approval by Parties
General Matters
Amendments
Affiliates
Direct Charges
Rentals and Royalties
Labour
Material
Transportation
Services
Equipment and Facilities Furnished
by Operator
Affiliates
Damages and Losses To Joint
Property
Legal Expense
Taxes And Permits
Insurance
Communications
Ecological, Environmental, and
Safety
Abandonment and Reclamation
Other Expenditures
Overhead
Overhead – Drilling and Producing
Operations
Technical Services
Overhead – Fixed Rate Basis
Overhead – Percentage Basis
Overhead – Major Constructions and
Catastrophe
Amendment of Overhead Rates
Material Purchases, Transfers, and
Dispositions
Direct Purchases
Transfers
Pricing
Freight
Taxes
Condition
Other Pricing Provisions
Dispositions And Surplus
Special Pricing Provisions
Premium Pricing
Shop-Made Items
Mill Rejects
Inventories of Controllable
Material
Directed Inventories
Non-Directed Inventories
Operator Inventories
Non-Operator Inventories
Special Inventories
General Provisions
Definitions
Statements and Billings
Advances and Payments by the
Parties
Adjustments
Part 5: Joint Interest Accounting: Direct Charges, Materials,
Offshore Operations and Audits
Direct Charges
Account
Direct Costs
Rentals and Royalties
Labor, Materials and Supplies
Transportation
Services
Exclusively Owned Equipment and
Facilities of The Operator
Affiliates
Damages and Losses
Legal Expenses
Taxes, Licenses, Permits, Etc
Insurance
Communications
Ecological and Environmental Costs
Abandonment and Reclamation
Offices, Camps, and Miscellaneous
Facilities
Other Costs
Pricing of Joint Account Material
Purchases, Transfers and Dispositions
Charges To Joint Interest
Accounting
Booking Charges to the Joint
Account: Accumulation of Joint Costs in Operator’s Regular
Account
Booking Charges to the Joint
Account: Distribution of Joint Costs as Incurred
Non-Consent Operations
Accounting for Materials
Offshore Operations
Joint Interest Audits
Module 4
Advanced Oil and
Gas Accounting: International Petroleum Accounting (3)
Part 1: Conveyancing For Oil and Gas Operation
Mineral interests
Types of interest
Basic Working Interests (WI)
Joint Working Interest
Basic Royalty Interest (RI)
Overriding Royalty Interest (ORI)
Production Payment Interest (PPI)
Net profit Interest
Conveyances: General Rules
Conveyances: Exchange and Poolings
Farm – ins/farm outs
Farm – ins/farm outs with a
reversionary working interest
Free wells
Carried interests or sole risk
Joint venture operations
Poolings unitizations
Unitizations
Participation Factors
Computation of Barrels for payout
Computation of proved Reserves
Computation of proved developed
reserves
Conveyances: Sales
Unproved property sales
Sales of entire interest in
unproved property
Sales of partial interest in
unproved property
Proved property sales
Sales and purchases of a partial
interest in proved property
Sales of working interest in a
proved property with retention of nonworking interest
Conveyances: production payments
Retained production payments
Retained production payments
payable in money – reasonably assured
Retained production payments
payable in money – not reasonably assured
Carved-out production payments
payable in product or volumetric production payment (VPP)
Conveyances-full cost
Problems and Issues associated with
Conveyance
Part 2: Oil and Gas Disclosures
Required disclosures
Illustrative example
Proved reserve quantity information
Reserve definitions
Proved reserves
Proved developed reserves
Proved undeveloped reserves
Use of end-of-year prices
Reserve quantity disclosure
Capitalized costs relating to oil
and gas producing activities
Costs incurred for property
acquisition, exploration, and development activities
Results of operations for oil and
gas producing activities
Standardized measure of discounted
future net cash flows relating to proved oil and gas reserve
quantities
Future cash inflows
Future development and production
cost
Future income tax expenses
Future cash flows
Discount
Changes in the standardized measure
of discounted future net cash flows relating to proved oil and
gas reserve quantities
Analysis of reasons for changes in
value of standardized measure 12/31/XB
Sales and transfers, net of
production costs
Changes from extensions,
discoveries, and improved recovery
Changes in estimated future
development costs
Development costs incurred during
the period that reduce future development costs
Analysis of changes in development
costs
Revision Quantity
Accretion of discount
Conclusion
Problems and issues that address
Oil and Gas Disclosures
Part 3: Accounting For International Petroleum Operations
Petroleum fiscal systems
Concessionary systems
Concessionary agreements with
government participation
Contractual systems
Government involvement in
operations
Government participation
Back in
Production sharing contracts
Signature and production bonuses
Royalties
Government participation
Cost recovery
Profit Oil
Other terms and fiscal incentives
Service Contracts
Joint operating agreements
Recoverable and non-recoverable
costs
Financial accounting issues
Financial accounting versus
contract accounting
International accounting standards
Problems
Part 4: Analysis of Oil and Gas Companies’ Financial Statements
Contractual systems
Government involvement in
operations
Production sharing contracts
Signature and production bonuses
Royalties
Government participation
Cost recovery
Profit oil
Other terms and fiscal incentives
Capital uplifts
Ringfencing
Domestic market obligation
Royalty holidays and tax holidays
Service contracts
Joint operating agreements
Financial Accounting Issues
Financial accounting VS Contract
Accounting
Disclosure of proved reserves –
SFAS No. 69
Disclosure of reserves
International Accounting Standards
Part 5: Analysis of Oil and Gas Companies’ Financial Statements
Source of Data
Historical cost-based
Future value-based
Production
Productive wells and acreage
Undeveloped acreage
Drilling activity
Present activities
Delivery commitments
Comparing financial reports
Reserve ratios
Reserve replacement ratio
Reserve life ration
Net wells to gross wells ratio
Average reserves per well ratio
Average daily production per well
Reserve cost ratios
Finding costs ratios
Lifting costs per BOE
DDA&A per BOE
Reserve value ratios
Value of proved reserve additions
per BOE
Value added ratio
Financial ratios
Liquidity ratios
Current ratio
Quick ratio
Working capital
Financial strength ratios:
Debt to stockholder’s equity
Debt to assets
Times interest earned
Profitability ratios
Net income to sales
Return on stockholder’s equity
Return on assets
Cash flow from operations to sales
Price/earnings ratio
Price/cash flow ratio
Module 5 (Double
Credit)
SAP and Joint
Venture Accounting
Part 1: Sales and Accounts Receivables
How to Raise a Sales Invoice
Mapping Correct Accounts to Sales
Invoice
Component of Oil and Gas Sales
Price
Quantity
Managing Accounts Receivable
Customer Data Base Maintenance
Aging Analysis
Approval lines for Sales invoices
Issuer
Authorizer
Part 2: Purchases and Accounts Payable
Contract Set up in SAP
Including Contract Terms
Rates
Taxes
Map Purchase Orders to Contracts
Purchase Order Approval Process in
SAP
Map Purchase Order to Cost Ledger
Accounts
Set Up Payment Terms in SAP
System to Prompt for Payment Run
Part 3: Fixed Asset Accounting
Set up Fixed Asset parameters for :
Exploration Wells
Appraisal Wells
Development Wells
Subsea Equipments
Flowlines
Moveable Assets
Determine Asset Classes
Sub – classes
Asset Description
Set up Depreciation parameters
Straight-line
UOP
Reducing balance
Run monthly depreciation testing
Maintain an Asset Register on SAP
Part 4: Project Accounting
Cost Centre, Resource Codes Set Up
Map GL accounts to Cost Centre and
Resource Codes
GL Accounts to Roll Up to Correct
Cost Headings
Map Cost Centres and or Resource
Codes to Projects
Identifying All Project Costs Via
Cost Centres or Resource Codes
Report Generation along Project
Lines
Generate Profit and Loss Account by
Projects
Set up Project Reports that can be
Understood by Project Managers
Part 5: Joint Venture Accounting
Cut Back Process
Partners Share
Billable and Recoverable
Authorisation for Expenditure (AFE)
Billable and Non-Recoverable
Non-Billable and Non-Recoverable
Exclusive
Implementing Joint Venture
Accounting Agreements within the SAP System
Account Reconciliation
Joint Venture Reports
Module 6
International
Petroleum – Oil and Gas – Investment: Joint Ventures, Mergers,
Acquisitions, Strategic, and Financial Management
Part 1: The Oil and Gas Industry
Oil and
Gas Industry: An Overview
Understanding Oil and Gas Reserves
Analysing Oil and Gas in the Global
Economy
Oil and Gas Supply
Industry Financial Performance
The Role of Organization of
Petroleum Exporting Countries (OPEC)
The Resource Curse
Identifying the Players
What is International Oil Companies
(IOCs)?
What is National Oil Companies (NOCs)?
The Strategic Goals of IOCs and
NOCs
Independents
Other Firms
Tracking the Oil and Gas Industry
Value Chain
Upstream: Exploration, Development
and Production
Managing the Reservoir
Determining Upstream Profitability
Midstream: Trading and
Transportation
Downstream: Oil Refining and
Marketing
Gasoline Retailing
Natural Gas
Petrochemicals
Business Strategy Fundamentals
Evolution of the Industry
Innovation and Technology
Mergers and Acquisitions
Industry Substitutes and
Alternative Fuels
The Future of the Global Oil and
Gas Industry
Part 2: Concepts of Nationalism, National Oil Companies and the
Curse of Oil
The
Role and Value of Oil and Gas
National Security
National Wealth
Government and Corporate Interest
The Corporation
Corporate Stakeholders
The State and Civil Society
Oil and Gas and Government
Evolution of the National Oil
Companies (NOCs)
Birth of the National Oil Company
Evolution of Resource-Rich NOCs
Resource-Poor NOCs
Access to Capital
The NOC/IOC Relationship
The Strategic Interest of IOCs and
NOCs
Organization of Petroleum Exporting
Countries (OPEC)
Founding Principles
Market Share
Emerging Strategy
The Curse of Oil
Countries Afflicted By the Curse
The Economics of the Curse of Oil
Avoiding the Curse Oil
Domestic Politics of Oil and Gas
Part 3: Developing Oil and Gas Projects
Development Project Opportunities
Project Evaluation Process
Project Life-Cycle Reviews
Joint Development
Project Financial Analysis
Financial Metrics
Risk Analysis
Steps in Project Execution
Handling Contractor Relationships
Contractor Relationships vis-à-vis
Supply Chain
Types of Contractor Relationships
Successful Contractor Relationships
Evaluating the Environmental Impact
Assessing the Socioeconomic Impact
Managing Safety
Dealing with Problems in Project
Development
Part 4: Importance of Cost Management in the Production of Oil and
Gas
Defining Costs in the Upstream
Preproduction Costs
Production Costs (Lifting)
Accounting for Upstream Costs
ED&P and the Cost of Business
Performance and Competitive
Advantage
Oil Economics
Break-Even
Multiple Products
Working Interest
Taxes
Valuing Production on a Per Barrel
Basis
Strategic Cost Management in the
Oil and Gas Industry
Field Reinvestment and Renewal
Production Enhancement
Enhanced Recovery Costs
Mature Field Valuation
Continuous Learning
Managing Contractor Supply Chain
Contractor Bargaining Power
Partnership Management
Joint Venture Conflict
Managing Operated-By-Others
Projects
Learning and Knowledge Sharing in
Joint Ventures
Managing Political Risk
Innovation and Technology
Technology Innovations in the
Upstream Oil and Gas Industry
Technology and Cost Control
Chevron Cost Control
Part 5: Creating Fiscal Regimes
Development Agreements
Achieving the Right to Develop a
Project
Interests, Incentives and
Behaviours
Petroleum Fiscal Regimes
Concessions
Royalty/Tax System
Contractual Systems
Added Contractual Features
Signature Bonuses
Domestic Market Obligations
Investment Uplifts
Stabilisation Clause
Top-Line Risks
Petroleum Prices
PSA Evolution
Fiscal Regime
Government and Policy Change
Part 6: Financing and Financial Performance in the Oil and Gas
Industry
Business Financing
Basic Balance Sheet
Managerial Balance Sheet
Funding the Firm
Revenue and Earnings
Financial Performance
Performance and Creditworthiness
Windfall Profit
Capital Sourcing For the Oil and
Gas Industry
Corporate Finance
Public Equity
Private Equity
Venture Capital
Debt
Project Finance
Multilateral Lending
State Interest
Oil Loans
Petroleum Finance
E&P Firms and Downstream Oil and
Gas
Ruminations on Valuation
Part 7: Natural Gas
Chemistry and Form of Natural Gas
Raw Natural Gas Production
Liquefied Natural Gas (LNG)
Unconventional Gas
Natural Gas Reserves, Fields and
Production
Natural Gas Reserves
Gas Development
Natural Gas Use and Markets
Gas-Consuming Countries and Markets
Prices, Trading and Markets
Gas Pricing Fundamentals
The Gas-To-Oil Linkage
Part 8: Liquefied Natural Gas (LNG)
The Integrated LNG Project
Upstream
Transportation to Liquefaction
Liquefaction
Shipping
Regasification
Competitive Cost Analysis
LNG Contracting
LNG Markets and Pricing
LNG’s Regional Markets
The LNG Market: The Shift toward a
Global Commodity
LNG Break-Even
LNG Case Study
Gas to Liquids (GTL)
Part 9: Analysing the Market for the Crude Oil
The Basics of Crude Oil
The Demand for Oil
The Supply of Oil
Transportation Costs
Crude Oil Price
A Short History of Price
The Two Crude Price Eras
Crude Oil vis-à-vis Commodity
Benchmark Crude Oil
Crude Benchmarks and Pricing
Crude Oil Prices and Transactions
Crude Oil Transactions
How Futures Work
Oil Shipment and Inventories
Part 10: Transportation in the Oil and Gas Industry
Fundamentals of Transportation
The Barrel
The Strategic Chokepoint
Upstream Transportation
Pipelines
Gathering Systems
Pipeline Construction
Pipeline Operation
Oil Tankers
A Brief History of Oil Tankers
Evolution of Tanker Design
Oil Tankers Shift the Competitive
Balance
The Modern Supertanker
Chartering a Vessel
Shipping Contracts
Tanker Charter Rates
Tanker Operators
Environmental Risk
Downstream Transportation
Part 11: The Petroleum Refinery Process
Global Refining
The Refining Process
Distillation
Hydrotreating, Cracking and
Reforming
Other Processes
Safety and Environmental Issues
Refineries and Exit Barriers
The Refinery Product Mix
Refinery Complexity
Location
Product Demand
Refining Margins and Profitability
The Cost of Crude
Refining Value and Crack Spreads
Other Refinery Cost Drivers
Refinery Probability
Part 12: Undertaking the Sales and Marketing of Petroleum Products
Motor Fuel
Channels to Market
Refiner-Owned-And-Operated Retail
Outlets
Franchisers and Distributors
Jobber-Operated Outlets
Independent Dealers
Super Convenience Stores
Supermarkets/Hypermarkets
Where Does Gasoline At A Particular
Station Come From?
Fuel Standards and Specifications
OIC (Oil Major) in Fuels Marketing
The Retail Price of Motor Fuels
Zone Pricing
Important Factors in the Retail
Price of Motor Fuels
Price Elasticity of Motor Fuels
The Politicization of Motor Fuel
Prices
Aviation Fuel
Lubricants
Fuel Oils for Heating and Power
Generation
Asphalt and Propane
Part 13: Petrochemicals
Chemical Industry Overview
Petrochemical Production
Commodity and Specialty Chemicals
Industry Structure
Industry Profitability
Ethylene Production and Costs
Capacity Utilization
Specialty Chemical Performance
Refining and Chemicals Integration
Marketing
Distribution
Capital Investment in the Chemical
Industry
Part 14: The Future of the Global Oil and Gas Industry
The Products
Peak Oil Demand
Crude Oil
A Shift to Gas
Shale Gas
Substitute Products and
Renewable/Alternative Energy
The Markets
Growing Demand for Energy
Price, Supply And Demand Volatility
Global Market and Pricing for
Natural Gas
The Players and Their Strategies
Evolving Competitive Environment
Downstream and Chemicals
Refining and Fuels Marketing Remain
Core to The Industry
Availability of Capital
Deepwater Horizon Oil Spill
Increased Focus on the Safety and
Environment
Ongoing Talent Shortage
The Future of Oil and Gas Firms
Power of National Companies
Taxes
Map Purchase orders to Contracts
Purchase order approval process in
SAP
Map Purchase order to cost ledger
accounts
Set up payment terms in SAP
System to prompt for payment run
Part 15: Fixed Asset Accounting
Set up Fixed Asset Parameters for :
Exploration Wells
Appraisal Wells
Development Wells
Subsea Equipments
Flowlines
Moveable Assets
Determine Asset Classes
Sub – classes
Asset Description
Set up Depreciation parameters
Straightline
UOP
Reducing balance
Run monthly depreciation testing
Maintain an Asset Register on SAP
Part 16: Project Accounting
Cost Centre, Resource codes set up
Map GL accounts to Cost Centre and
Resource Codes
GL accounts to roll up to correct
cost headings
Map Cost Centres and or Resource
codes to Projects
Be able to identify all Project
costs via cost centres or resource codes
Report generation along project
lines
Generate Profit and Loss account by
Projects
Set up Project Reports that can be
understood by Project Managers
Part 17: Joint Venture Accounting
Cut Back Process
Partners share
Billable and Recoverable
Billable and Non-Recoverable
Non-Billable and Non-Recoverable
Exclusive
Implementing Joint Venture
accounting agreements within the SAP system
Account Reconciliation
Joint Venture Reports
Module 7
Oil and Gas
Prices and Forward Contracts: Understanding International Petroleum
– Oil and Gas – Market Rates, Hedging and Risks
Part 1: World Crude
Overview of the World Crude Oil
The Market Events from 2008 to 2011
World Energy Policy
The Financial Crisis and the Oil
Market
Fundamentals vs. Financial
Speculation
Demand/Supply of Gasoline and
Gasoil
WTI – Brent Differential
Part 2: Evolution of the Price of Crude Oil from the 1960s up to
1999
The Oil Monopoly and the Two Crises
in the 1970s
The Gradual Disappearance of OPEC
The Price War
From the Introduction of Brent as
an International Benchmark to the Clean Air Act
The Suicide of OPEC
The Start of the Free Market
The Consequences of the
Environmental
Turnaround
Part 3: Changes in the Market for Automotive Fuels
Evolution of Environmental Demand
Gasoline and its Components
Reforming
Cracking
Alkylation
Isomerization
Refiners Walk the Tightrope
The Fiscal Policy of the
Industrialized Countries Regarding Fuels
Part 4: Oil Flow and International Markets
Transformations in the Downstream
World Supply Structure
The Classical Model of the
International Oil Market
The Short-term Model of the
International Oil Market
Analysing the Brent Market
The Sale and Purchase Contract
The Forward Market for Brent (15
day Brent Contract)
The IPE Brent Market
The Divorce between Oil Price and
Oil
Part 5: Primary Objectives of the Forward and Futures Markets
Tax Spinning
Benchmarking
Hedging the Price Risks
Speculations on Operational
Flexibilities at Loading
Market Structure: Contango and
Backwardation
Procedures at the Loading Terminals
Dealing with the Problems of the
Brent Forward Market
The European Refinery Crisis

Programme Number 163 - Advanced Oil and Gas Accounting:
International Petroleum Accounting, Intensive Full-Time {3 Months (5
Days -30 Hours) per Week} Programme, Leading to Postgraduate Diploma in
Advanced Oil and Gas Accounting: International Petroleum Accounting.
Click to download the PDF Brochure for this Course.