By the end of the program, participants will be able to:
- Understand how accounting policies impact financial performance reporting in the exploration and production sector.
- Differentiate between successful efforts and full-cost accounting methods and their implications.
- Accurately account for decommissioning costs and their financial reporting requirements.
- Apply best practices in joint venture accounting to ensure transparency and compliance.
- Implement effective cost control measures and perform in-depth cost analysis.
- Develop strategies for drilling cost control, forecasting, and variance analysis.
- Manage project and development costs efficiently to optimize financial outcomes.
DAY 1
Introduction to the E&P Industry and Accounting Policies
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- Overview of the exploration and production industry and its impact on accounting and financial management.
- Accounting policies and their influence on reporting financial performance.
- Cost accounting principles in the E&P industry.
- Incorporating reserve data in accounting calculations.
- Depreciation, depletion, and amortization (DD&A) processes.
- Conducting impairment or ceiling tests.
- Accounting for decommissioning costs.
DAY 2
Joint-Venture Accounting
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- Understanding joint-venture (JV) agreements and their significance in E&P operations.
- Key accounting aspects stated in JV agreements.
- Preparing and processing cash calls in JV contexts.
- Processing JV billing statements and cost allocation methodologies.
- Allocating joint-venture costs effectively and transparently.
DAY 3
Cost Control and Analysis
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- Managing project and development costs:
- Authorization for Expenditures (AFEs) and cost estimation.
- Controlling capital expenditures.
- Estimating and controlling production operating costs:
- Fixed vs. variable cost analysis.
- Activity-based cost analysis.
- Drilling cost management:
- Preparing well cost estimates.
- Controlling drilling expenditures.
- Forecasting and reviewing drilling AFE costs.
- Post-completion well cost reviews.
DAY 4
 Accounting Standards and Reporting
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- Accounting for pre-development costs:
- Policy choices for pre-licensing, exploration, and appraisal costs.
- Accounting for decommissioning provisions:
- Comparing IAS 37, FAS 143, and FRS 12 requirements.
- Preparation of annual reports:
- Case studies and reviews of sample oil and gas company reports.
DAY 5
Practical Applications and Case Studies
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- Hands-on review of accounting scenarios in the E&P industry.
- Analysis of cost control measures in real-world projects.
- Discussion of best practices in financial reporting and management.
- Comprehensive review and Q&A session.
