The British Academy for Training and Development offers a specialised Upstream Petroleum Accounting Training Course, designed to provide professionals with detailed knowledge of financial practices pertaining to the upstream oil and gas industry.

The extensive training enables attendees to sharpen essential skills in exploration and production accounting with emphasis on financial peculiarities of upstream operations. Beginning with an overview of the oil and gas industry seen from the upstream sector structure and various key processes, attendees will then proceed into the domain of petroleum economics covering cost recovery, royalties, and production sharing contracts (PSCs).

Other important modules consist of joint venture accounting concerning cost allocation, cash call management, and joint interest billing (JIB). Attendees will navigate through capital and operating expenditure (CapEx and OpEx) tracking, and methods of financial reporting according to international standards including IFRS and US GAAP, with a special focus on reserves reporting and impairment testing.

The course also delves into revenue recognition, inventory valuation, and depreciation methods for the upstream industry. Analysts will be given knowledge of internal controls, audit requirements, and risk management practices in petroleum accounting.

At the end of this course, attendees will be able to operate petroleum accounting software, analyze financial statements of exploration and production companies, and contribute to decision-making processes from accurate financial analysis. This training will be highly useful for analysts who want to enhance their skills in upstream oil and gas financial operations.

Objective:

At the end of The Upstream Petroleum Accounting Training course attendees should be able to:

Enhance knowledge of exploration and production accounting.Build competency in handling joint venture accounts, cost sharing, and revenue reporting.Enable professionals to comply with industry-specific financial regulations and standards.Strengthen the ability to use financial data for decision-making and performance evaluation in upstream petroleum projects. Understanding Upstream Contracts and the corresponding register for each contract; Understanding the terms of the contract and distinguishing the different types of contracts that are in the upstream industry.Knowing best practices of contract negotiation and effectively negotiate.Explaining and developing the best auditing and accounting practices in the upstream industry.Knowing how to make use of available information as a benchmark for the performance of their organisationKnowing the risks involved in auditing and how to manage those types of risks within the organisationKnow how to enhance the credibility of their organisation's financial reports. Who should attend?

This course is ideal for:

Project Managers that need to understand the accounting intricacies of Upstream PetroleumGeneral managers that oversee budget planning and marketing strategiesLegal Counsels that are specialists in the field of finance and offer legal servicesInsurance professionals that need to gain financial insights into the valuation of oil and gas companiesInternal and External Financial Auditors in the Upstream Petroleum sector that desires to know the peculiarities of the oil and gas sectorInvestment and financial analysis professionals that provide consulting services for their clients interested in Upstream PetroleumGovernment regulatory and auditing professionals formulate policies and guidelines to coordinate the activities of oil companiesHow Will Attendees Benefit? 

The Upstream Petroleum Accounting Training Course for Analysts will give the attendees many practical and strategic benefits. These range from:

Enhancement in Technical Knowledge: Will enable the course attendees to start with solid foundations regarding accounting principles and financial reporting standards that are relevant to the upstream oil and gas industry.Industry Skills: These include exploration and production accounting, joint venture cost and revenue recognition as well as production sharing contracts all specifically related to upstream operations.Analytical Skills: Use this unique training and acquire skills to unlock complex financial data, determine key cost drivers, and make decisions based on financial analyses.Guided in Compliance: Know accounting standards such as IFRS and US GAAP and other petroleum industry-specific requirements, thereby supporting accurate and credible financial reporting.Hands-on Software Practice: Get exposed to petroleum accounting applications and software to enable efficient financial reporting and data analysis.Strategic Decision Support: Provided with thorough integration in upstream projects' budget planning, risk management, and financial control strategies.

Module 1: Introducing Upstream Contracts

• Overview of the Oil and gas industry
  – Brief introduction
  – Terminologies
  – Structure

• Upstream contracts and the law
  – A legal framework for the contracts

• Contract Formation

• Key players in the oil and gas industry
  – Relationship network
  – Influence

• Fundamentals of oil and gas contracts

• Territories and national laws

Module 2: License and Ownership of Upstream Contracts

• The basics of petroleum contracts
  – Joint venture
  – License concession
  – Product sharing agreement

• Features of Upstream Contracts

• Realities of the oil and gas in commerce

• Oil and gas ownership

• Risk service contracts

• Resource holder rights grants

• Role of Government in upstream contracts

• Significant issues in multi-national contracts
  – Framework for negotiations

• Exploration and production agreements
  – Key differences between the underlying registration

Module 3: Joint Operating Agreements and Product Sharing Contracts (PSCs)

• Overview of PSCs
  – Types of Approach and Levels of Complexity

• Exploring the role of calculation
  – Understanding the formulas and application

• New PSCs in significant jurisdictions

• Non-fiscal legal terms of a contract

• Taxes and royalties
  – The R factors
  – Taxation agreements

• Fiscal areas of the contract
  – Fiscal agreement
  – Comparisons of fiscal systems and license fees

• Penal costs and bonuses

• Joint ventures
  – Nature
  – Aim, functions

• Government interests, purpose, and conditions for approval

Module 4: Service Contracts

• Service contracts
  – Risk-bearing service contracts
  – Non-risk-bearing service contracts

• Model forms/sources of service contracts

• Insurance
  – How to allocate risks

• Master service contracts

• Farm in and Farm out
  – Overview
  – Nature
  – Matter

• Assignment and reservation of interests

• Unitisation
  – Practice
  – Transboundary unitisation

• Unitisation and government approval

Module 5: Negotiation of Production Sharing Contracts (NPSC)

• The government stand

• The cost of negotiation production and sharing

• Details of negotiation NPSC
  – Force majeure
  – Resolving disputes
  – Local contents

• How to stabilize negotiation or renegotiate PSCs?

• PSA negotiation with the government

• Principles and best practices of negotiation
  – Disadvantages of competitive negotiation

Module 6: Key Issues Facing Accounting and Auditing in the Upstream Petroleum sector

• Most recent Upstream Petroleum Accounting and Auditing issues

• Interest rates and the corresponding fluctuations
  – Price of commodities
  – Environmental contributions
  – Overview and impacts

• How financial and accounting issues affect strategy formation
  – Stability and Growth in the Upstream Petroleum Sector

• Annual financial reports from top players in the upstream petroleum sector

• The Importance of IFRS to the upstream oil and gas accounting

• The role of auditing

Module 7: Cost of Accounting and Revenue in the Upstream Petroleum Sector

• Recognizing revenues and IFRS
  – Overview of contract-generated revenue with customers

• The cost of the upstream process
  – Acquisition
  – Exploration
  – Development and production

• Exploration technicalities

• Best approaches to accounting

• Profit oil and cost oil
  – Break-even oil

• Evaluating the top players in the upstream industry
  – Profitability
  – Profit margins
  – Financial reports

Module 8: Accounting and Evaluating Assets in the Upstream Petroleum Sector

• Resources and assets reserve

• Property, plant, and equipment

• Depletion, depreciation, and amortization

• Asset impairment

• Financial Instruments
  – Possible liabilities and assets
  – Intangible assets

Module 9: Corporate Governance, Creative Accounting and Auditing

• Creative accounting

• Corporate governance

• Published financial statements

• Audit board and committee
  – Overview
  – Roles and power

• External auditing
  – Presenting financial reports to investors

• Internal auditing

Module 10: Roles and Functions of the Internal Audit

• The internal audit department
  – Elements of an audit department
  – Roles of staff within the department

• Types of audits

• Internal audit examinations

• Substantive tests and audit control processes

• How to report audit findings?

• Post-audit activities
  – Audit exit conference
  – Post-audit reviews