This Finance and Accounting for the Oil & Gas Industry training course provides the essential financial knowledge and skills to enable delegates to successfully recommend appropriate methods of finance and to prepare, understand and evaluate financial accounts for the Oil & Gas industry. It focuses on the finance and accounting issues specifically affecting the industry including: IFRS 6 Exploration for and Evaluation of Mineral Assets, Accounting Approaches, The “Successful Efforts” and “Full Cost” (FC) Method, Accounting for Reserves, Resources & Assets. 

Who should attend? 

• Accountants & Finance professionals responsible for fincial accounting, treasury, budgut preparation and management reporting. 
• Bankers and Professionals who work in Energy Lending 
• Those responsible for raising and managing finance 
• Those responsible for making or contributing to capital decisions 
• Professionals who require a more in-depth understanding of finance and accounting 
• Line heads with direct finance and accounting responsibility 
• Those responsible for making decisions based on finance budgets 

PROGRAMME OBJECTIVES 

• Recommend appropriate methods of financing capital projects 
• Evaluate capital investment proposals 
• Prepare financial statements in line with International Financial Reporting Standards 
• Evaluate financial statements to identify and recommend improvements within their own organization 

This training programme will be of personal benefit to delegates by providing you with: 

• The knowledge and skills to help further your career 
• The latest tools and techniques to assist you in your role 
• A strategic outlook, enabling you to shape both your future and your organisation’s future 
• The ability to work independently and with others 
• An opportunity to learn from other professionals within the sector 
• A greater understanding or your role and the major issues affecting it 

TRAINING METHODOLOGY: 

The Finance and Accounting for the Oil & Gas Industry training course uses training methods chosen to ensure effective learning, to reinforce understanding, to develop practical skills and to promote the critical evaluation of information. Interest is maintained throughout each session using a variety of formats, including: 

•     Real world Oil & Gas case studies demonstrating the practical application of each topic 
•     Illustrative extracts from the annual reports of international Oil & Gas companies 
•     Discussion of relevant issues raised by participants 
•     Illustrated presentations of Oil & Gas accounting issues focusing recent events and strategic issues facing companies today 

 Financing Growth & Capital Projects  

• The Business & Financial Environment 
• Risks facing the Oil & Gas industry 
• Identifying Growth opportunities 
• Financing Growth via Equity, Debt and/or alternative sources 

• Evaluating Capital Investment using Payback, ARR, NPV & IRR 
• Capital Rationing – Internal & External 

Accounting in the Oil & Gas Industry  

• The Accounting System 
• Understanding the Annual Report 

• Preparing Financial Statements in accordance with IFRS 
• IAS 18: Revenue & IFRS 17 Revenue from Contracts with Customers 
• IFRS 6: Exploration for and Evaluation of Mineral Assets 
• Accounting Approaches – The “Successful Efforts” (SE) Method or the “Full Cost” (FC) Method 

Accounting for Reserves, Resources & Assets  

• Resources & Reserves – the size and importance 
• Reserve Classification & Reserve Quantity Disclosures 
• Accounting for Assets & Relevant IFRS requirements: IAS 16, 36, 37, 38 & 39 
• Depreciation, Depletion and Amortisation (DD&A) 
• Ceiling or Impairment Tests 

• Decommissioning, Removal & Restoration of Assets 

Business Combinations, Joint Arrangements & Production Sharing Agreements  

• The Need for Co-operation in a Capital Intensive industry 
• IFRS 3 Business Combinations 
• IFRS 10 Preparing and Presenting Consolidated Statements 

• IFRS 11 Joint Arrangements, Joint Operations & Joint Ventures 
• Production Sharing Agreements 
• Revenue, Cost, Cashflow & Reserve Implications 

Financial Analysis to Evaluate Performance and Improve Efficiency  

• Analysis of Financial Statements 

• Profitability, Liquidity, Operational & Solvency measures 
• Off Balance Sheet Items & Contingencies 
• Investment Measures of Leading International Oil & Gas companies 
• Improving Return on Equity 
• Implementing change in the light of analysis 

Strategic Issues Facing the Oil & Gas Sector 

• The Nature of the Oil & Gas sector 
• Current & Future Challenges within the Sector – A question of Supply & Demand 
• Volatility: Demand, Energy Prices, Exchange Rates, Interest Rates 
• Resources & Reserves and the need for Research & Development 

• Financial Issues Impacting on Strategic Development and Growth 

Advanced Strategic Decisions 

• Strategic Planning and Decision Making in a Volatile Market 
• Analytical Tools to Aid Strategic Planning and Decision Making 
• Diversifying Income Streams - Balancing Upstream, Midstream & Downstream 

• Growth Strategies: Exploration, Diversification, Vertical & Horizontal Integration 
• Mergers & Acquisitions, Joint Ventures, Production Sharing Agreements & Strategic Alliances 

Financing Strategies in the Oil & Gas Sector 

• Sources of Finance – The Optimum Capital Structure and the Cost of Capital 
• Capital Investment Appraisal: NPV, IRR, Modified IRR, Payback 

• Financial Forecasting and Analysis in Excel 
• Managing Uncertainty of Production, Prices, Capital Costs & Construction Delays 
• Modelling Energy Prices in Capital Budgeting 

Financial Risk Management Strategies 

• Developing and Implementing a Risk Management Strategy 

• Risk Analysis of Oil and Gas Projects using Excel 
• Sensitivity Analysis, Sensitivity Charts & Scenario Analysis, Monte Carlo Simulation 
• Hedging Energy Prices - Interest Rates & Foreign Exchange Rates using Financial Derivatives 
• Accounting for Hedging Under IFRS 

Project Management to Meet Strategic Aims & Objectives 

• Estimating Activity Durations & Costs using Statistical and Probability Estimates 
• Critical Path and Manpower Planning 
• Earned Value Analysis 
• Budgetary Control and Variance Analysis 
• Implementing & Managing Change, Suspension or Shut Downs