Course Description
Understanding finance and accounting is often the key to managerial progression, but the special problems in financial reporting and accounting for the Oil and Gas industry can make the whole topic seem daunting.
The industry typically requires extremely high levels of speculative investment with absolutely no guarantee of a successful return. It is characterized by lengthy time periods between the initial investment and any returns and it attracts many regulatory accounting rules and standards.
This five days training discusses the ways that the finance function deals with these special requirements. The program will have a practical approach and aims to enable each participant to fully appreciate the role of financial and accounting information in decision-making and also the impact of their personal activities on their organization’s financial viability.
Course Objective:
By the conclusion of the specified learning and development activities, delegates will be able to:
- Demonstrate their understanding the advanced accounting documents and their interrelationships and role in advanced oil and gas accounting;
- Use cash flow in an innovative way, towards effective oil and gas accounting;
- Demonstrate a heightened understanding of the differing levels of regulation and standardization applied to Oil and Gas accounting;
- Exhibit their ability to dissect and reconstruct corporate analysis cases;
- Deconstruct the role of finance and accounting in an Oil and Gas organization;
- Discuss, with a high degree of mastery, the effectiveness of financial reporting policies and practices in particular Oil and Gas Corporate Establishment;
- Exhibit a heightened understanding of the requirements of International Financial Reporting Standards, incorporating International Accounting Standards, in the Oil and Gas Industrial Sector;
- Determine the key performance indicators (KPIs) (financial and non-financial) in the Oil and Gas Industry;
- Demonstrate a heightened ability to analyze their company’s performance, as an oil and gas player or regulator;
- Compare the financial performance of competing oil and gas sectoral players;
- 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 understanding of the salient issues of regulation, negotiation and culture as they affect oil and gas company operations when they are entering new markets, with specific relation to international co-operations and acquisitions;
- 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;
- Demonstrate their ability to anticipate, formulate and implement new strategies in the oil and gas industry, that will enhance their effectiveness within a dynamic global environment;
- Demonstrate the level of guidance that they will offer to oil and gas accounting strategists and management accountants in support of their strategic objectives and decision-making in conjunction with diversification and acquisition;
- Exhibit the ability to use the results of financial prospects in a oil and gas company are measured and reported through the analysis of financial statements and different accounting methods;
- Use their analytical skills and techniques in oil and gas capital budgeting and project evaluation including risk analysis for better decision-making and strategic planning;
- Propose how the current issues in the activities of capital acquisition and management in order to generate more capital and greater return on investment;
- Devise a plan for the implementation of strategic risk management towards the enhancement of corporate goals in the oil and gas industrial sector;
- Demonstrate an understanding of the basics of contract law and how they relate to the oil and gas sector;
- ‘Relate’ simple contract language to risk mitigation techniques in oil and gas operation;
- Identify dangerous words and phrases in the oil and gas contracts of others that could otherwise prove disastrous to a company’s financial standing;
- Exhibit their ability to manage risk effectively in oil and gas project contracts, averting pitfalls of key contractual clauses;
- Demonstrate an understanding of salient contract and claim techniques in oil and gas operations;
- Determine the most appropriate contract for oil and gas operation, in relation to market load, reservoir characteristics, project feasibility;
- Demonstrate the most appropriate contract formulation for Take-or-pay thresholds, accounting, transportation agreements, tariffs, reserving pipeline capacity, respectively;
- Exhibit a high level of competence in contract administration, incorporating invoicing, as it relates to force majeure impact on take-or-pay, gas quality, gas delivery for multiple pipeline users, respectively;
- Appraise and discuss the structure of the oil and gas industry contractual matrix
- Recognise, discuss and justify some of the main contractual clauses in the main contracts in the oil and gas industry
- Evaluate the effect of these clauses on the contractual parties
- 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,
- Assess the key principles of public international law as these affect oil and gas contractual relationships,
- Determine the principal licensing and contractual arrangements which are found in the international oil and gas industry including Exploration and Production Sharing Agreements and or Licences, Joint Operating Agreements, Drilling Agreements, Construction and Engineering Contracts, Asset Sale and Purchase Agreements, Farm-In Agreements Gas, Gas Sales Agreements, Transportation Agreements, Operations and Maintenance Agreements and Decommissioning Agreements,
- 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.
Course Certificate:
Masters Consultant certificate will be issued to all attendees completing minimum of 75% of the total tuition hours of the course.
Duration
