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. Contents include
3-D Seismic, 4-D Seismic, Anticline, Blowout Preventer,
Christmas Tree, Delay Rental Payment, Derek Hands,
Drilling Platform, Drilling Rig, Injection Well, Lease
Bonuses, Mineral Interests, Mineral Lease, Mineral
Rights, Mouse Hole, Offset Clause, Oil and Gas
Drilling, Option Payment, Proved Area, Rat Hole,
Retained ORI, Shut-In Payment, Working Interest.
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.
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
By the conclusion of the specified learning and
development activities, delegates will be able to:
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)
Demonstrate an understanding of 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.