Advanced Oil and Gas Accounting: International Petroleum Accounting (3) PG Course. Contents e.g. Reserve Ratios, DD&A per BOE, Return on Assets, Proved Reserve, Proved Developed Reserves, Proved Undeveloped Reserves, Accounting for International Petroleum Operations, Fiscal Systems, Concessionary Systems, Government Participation; Production Sharing Contracts, Signature Bonus, Production Bonus, Royalties, Profit Oil, Joint Operating Agreements, in Abuja, Accra, Amman, Bangkok, Banjul, Beirut, Birmingham, Bogotá, Brasilia, Brussels, Bucharest, Cairo, Colombo, Conakry, Dodoma, Doha, Dubai, Durban, Gaborone, Georgetown, Hanoi, Islamabad, Jakarta, Jeddah, Kathmandu, Kinshasa, Kuala Lumpur, Kuwait, Lagos, Lima, London, Luanda, Lusaka, Manama, Manila, Maputo, Muscat, Nairobi, New Delhi, New York, Niamey, Paramaribo, Paris, Quito, Rabat, Seoul, Singapore, Tokyo, Toronto, Tripoli, Windhoek, Wolverhampton, etc. and Online.

#048 - Advanced Oil and Gas Accounting: International Petroleum Accounting (3) Course, Leading to Diploma – Postgraduate in Advanced Oil and Gas Accounting: International Petroleum Accounting (3), 30 Credit-Hours, accumulating to a Postgraduate Certificate, with 150 additional Credit-Hours, and a Postgraduate Diploma, with 330 additional Credit-Hours.

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

MEd Management (University of Bath);

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

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

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

Teaching Certificate;

Fellow of the Institute of Management Specialists;

Human Resources Specialist, of the Institute of Management Specialists;

Member of the Asian Academy of Management (MAAM);

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

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

Member of ResearchGate;

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

Human Resources;

Organization and Management Theory;

Organization Development and Change;

Research Methods;

Conflict Management;

Organizational Behavior;

Management Consulting;

Gender & Diversity in Organizations; and

Critical Management Studies.

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

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

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

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

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

His responsibilities in these roles included:

Doctoral Research Supervisor;

Admissions Tutor;

Postgraduate and Undergraduate Dissertation Supervisor;

Programme Leader;

Personal Tutor.

 

Duration: 5 Days

 

Daily Schedule: 09:30 – 16:30

 

Cost: £5,000.00  Per Delegate

 

The course cost does not include living accommodation. However, classroom-based 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.

 

HRODC Postgraduate Training Institute’s Complimentary Products include:

HRODC Postgraduate Training Institute’s Leather Conference Folder;

HRODC Postgraduate Training Institute’s Leather Conference Ring Binder/ Writing Pad;

HRODC Postgraduate Training Institute’s Key Ring/ Chain;

HRODC Postgraduate Training Institute’s Leather Conference (Computer – Phone) Bag – Black or Brown;

HRODC Postgraduate Training Institute’s 8GB USB Flash Memory Drive, with Course/ Programme Material;

HRODC Postgraduate Training Institute’s Metal Pen;

HRODC Postgraduate Training Institute’s Polo Shirt.

 

 Seminar or Course Number 048 - Advanced Oil and Gas Accounting: International Petroleum Accounting (3) Course, leading to Diploma - Postgraduate - in Advanced Oil and Gas Accounting: International Petroleum Accounting (3), Accumulating to a Postgraduate Diploma. Click to download the PDF Brochure for this Course. 

 

Course Objectives

 

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

  • 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.les of;

  • 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; and

  • 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

 Seminar or Course Number 048 - Advanced Oil and Gas Accounting: International Petroleum Accounting (3) Course, leading to Diploma - Postgraduate - in Advanced Oil and Gas Accounting: International Petroleum Accounting (3), Accumulating to a Postgraduate Diploma. Click to download the PDF Brochure for this Course. 

 

Course Contents, Concepts and Issues

 

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

 

 Part 1: Conveyances

  • 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 and Unitizations;

  • Unitizations:

  • Participation Factors.

  • Computation of Barrels For Pay-out;

  • 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 vs. 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;

  • Ring-fencing;

  • 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.

  • Problems.