Accounting and Financial Practices in Oil and Gas: A Comprehensive Guide
Introduction
This comprehensive programme provides participants with a solid foundation in the financial aspects of Oil and Gas exploration and production (E&P). Designed specifically for non-finance specialists, the course bridges the gap between technical operations and financial decision-making. Every activity within the sector has financial implications—on assets, departments, and ultimately, the organization.
Through practical examples, case studies, and real-life reporting extracts, participants will gain the skills and confidence to understand the financial consequences of their actions, engage effectively with commercial colleagues, and contribute strategically to the overall success of their organizations.
By the end of this programme, participants will:
* Understand how operational decisions are reflected in company reporting.
* Enhance their confidence in dealing with financial information.
* Improve collaboration with Finance departments.
* Develop stronger financial control of budgets and expenditures.
* Prepare for greater responsibility and more strategic roles in management.
Objectives
By attending this programme, participants will be able to:
* Appreciate the financial impact of daily decisions and operations.
* Work more effectively with financial colleagues on key matters.
* Improve the accuracy and relevance of financial information shared across departments.
* Increase the approval rate of expenditure requests and optimize allocated funds.
* Use budgets and management reports as tools for financial control.
* Understand annual reports and accounts within the Oil & Gas industry context.
Who Should Attend
This programme is ideal for:
* Technical, operational, and project staff in Oil & Gas who need financial awareness.
* Departmental managers and supervisors involved in budgetary control.
* Non-finance specialists seeking confidence in finance-related discussions.
* Professionals preparing for broader managerial or strategic roles.
Methodology
The course combines interactive presentations, practical case studies, group exercises, and financial analysis workshops. Real-life examples and illustrative extracts from Oil & Gas company reports will be used to reinforce learning and ensure immediate workplace application.
Course Outline
Day One – The E&P Business and Project Economics
* Business environment, objectives, stakeholders, and corporate governance
* The E&P value chain and risk-reward dynamics
* Project economics: cash flows, time value of money, discounting, and cost of capital
* Economic models and decision criteria
Day Two – Accounting, Exploration and Development Costs
* The accounting system: recording data, cash vs accruals, balance sheet, income statement
* Accounting principles and standards
* Capital vs operating expenditure
* Exploration and appraisal costs: full cost vs successful efforts
* Intangible and tangible assets, development commitments
Day Three – Reserves, Production and Cost of Sales
* Oil & Gas reserves: classification and disclosures
* Production costs: lifting, maintenance, royalties
* Depreciation, depletion, and amortisation (DD&A) – UOP method
* Impairment and ceiling tests: requirements and processes
* Decommissioning, removal, and restoration obligations
Day Four – Risk and Cost Sharing Arrangements
* Joint ventures: cash calls, billing, entitlements, transfers
* Farm-outs, carried interests, production sharing contracts
* Cash flow and reserve implications
* Long-term gas contracts: pricing mechanisms and take-or-pay clauses
Day Five – Financial Analysis, Budgets and Management Reports
* Analysis of financial statements: profitability, liquidity, solvency
* Investment measures and financial ratios
* Budgets: preparation, authorisation of expenditure, and processes
* Management reports: responsibility reporting and variance analysis
Key Benefits
By completing this programme, participants will:
* Gain confidence in interpreting financial reports and accounts.
* Strengthen decision-making with improved financial awareness.
* Enhance communication with Finance teams and commercial colleagues.
* Learn practical tools for budgeting, cost control, and variance analysis.
* Understand the financial impact of joint ventures, contracts, and decommissioning.
* Contribute more strategically to the financial performance of their organization.
Enquiries and Registration
Enquiry at : admin@keleaders.com
Whatsapp: 0044 790 125 9494
For more details visit our website : www.keleaders.com
