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

 

Programme Objectives

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.