Advanced Joint Venture Cash Call (JVCC) for the Oil and Gas Industry

Why select this training course?

Joint ventures (JVs) are more common among oil and gas enterprises. JVs are formed so oil and gas may be developed and produced cost-effectively. It also helps the oil and petrol industry deal with the many risks that crop up over a field’s lifespan. JVs have their methodology for operations and financing, understanding which is crucial for any Oil and Gas professional. Requests for financial contributions (also known as “cash calls”) are made by the operating partners of a joint venture to the non-operating partners when the functional partners’ share of the joint venture’s capital, operational expenses, or both are expected to rise shortly. When drafting the cash call clause of a mutual agreement, it’s essential to be as specific as possible to avoid misunderstandings and disputes.

What advantages does a company have if its staff is well-versed in JVCC?

Understanding the nature of a joint venture framework and how to effectively execute a risks and benefits analysis in a Joint Venture will make employees and representatives invaluable to their firm (JV). Efficient accounting, financing, and analysis of cash call types for oil and gas joint ventures will be a boon to the company’s bottom line. Examining its impact on the joint venture industry and fixing issues related to cash calls in O&G operations are necessary skills sought in the Oil and Gas Industry.

Is the Joint Venture Cash Call useful?

The upstream projects get annual investments of billions of dollars. All parties to the Joint Operating Agreement (JOA) shall be required to make financial contributions to the JOA’s everyday operations to the extent specified in the JOA. When the operator makes a cash call, all partners in the Joint Venture are obligated to pay their portion of the operational or capital expenditures. Joint Venture Cash Calls may be evaluated using technologies, allowing for extracting and processing crucial data on buying subsidiary funds to improve working capital. Enrolling in and finishing the Joint Venture Cash Call course will give you a leg up on the competition if you’re looking to further your career in the oil and gas industry.

The Advanced Joint Venture Cash Call (JVCC) for the Oil and Gas Industry Training Course by Rcademy teaches its participants the concepts of cash calling with oil and gas joint ventures. This course will cover multiple ideas, including the effect of cash default, outstanding cash calls, and refund opportunities. This Rcademy course will also allow the learners to understand the types of contracts and the critical challenges in successfully creating the oil and gas joint project and budgeting, accounting, and auditing practices. In addition, participants will gain skills to perform cash call quantification through the screens of equity and cash call reconciliation, cash call accounting and reporting, cash call deficits, repayment options, and the impact of cash deficit on operations and profitability.

Who should attend?

The Advanced Joint Venture Cash Call (JVCC) for the Oil and Gas Industry Training Course by Rcademy  is ideal for

• Financial Officers
• Finance Directors
• Government Regulators
• Finance Managers
• Asset Accountants
• External Auditors
• Financial Analysts
• Chief Accountants
• Attorneys
• General Accountants
• Treasury Officers
• Commercial Analysts
• Internal Auditors
• Public Accountants
• Fund Managers
• Oil and Gas investors
• Treasury Managers
• Venture Capitalists
• Budgeting officers
• Financial Reporters
• JV Advisors
• Treasury Auditors
• Upstream Oil and Gas Regulators
• Government Regulator

What are the course objectives?

The objectives of The Advanced Joint Venture Cash Call (JVCC) for the Oil and Gas Industry Training Course by Rcademy are to enable the participants to:

• Understand the JVs’ operational significance in the Oil and Gas industry
• Understand the framework and use of cash calls
• Learn the nature and structure of JVs and the application of JVs in everyday operations
• Determine the procedures of JVs in the Oil and Gas industry
• Understand and apply the accessible tools and acquired techniques of JV accounting
• Understand the issues of JV accounting
• Understanding the different accounting approaches of the JVs
• Determine how to tailor strategies to the needs of the industry to get the anticipated yield
• Understand the accounting principles of the JV agreements in the Oil and Gas Industry
• Understand the sections of each type of JV arrangement

How will this course be presented?

With an awareness of the course’s emphasis on application, our rendering team has been working hard to develop and provide cutting-edge resources and instructional strategies to help students acquire the skills they need. The methods used in teaching include:

• Video presentations
• Group discussions and interactive sessions
• Exercises, presentations, and management games
• Case studies

What are the topics covered in this course?

Module 1: Understanding Accounting in the Oil and Gas Industry

• Structures of the Oil and Gas industry and companies
• Accounting and its Relationship to the Oil and gas industry
• Philosophies of the International Financial Reporting Standards
• Reasons for Considering Joint Venture Agreements
• The impressions of a volatile environment
• Regulatory environment impacts
• Explanation and Introduction of Joint Ventures
• Structure of JV
• Features and characteristics of JVs
• Pros and cons of JVs
• JVs’ roles in the O&G industry
• JV agreements provisions

Module 2: Types of JVs in O&G

• Four types of Joint Venture agreements
• Undivided interests
• Limited partnership
• Corporate Joint Ventures
• Limited Liability Companies
• Differences between JV and partnership
• Non-operators and operators

Module 3: Accounting Concepts

• General account concept
• The idea behind money measurement
• The dual aspect
• Consistency idea
• The accounting periods
• The entity idea
• Conservatism
• The concept of cost
• Realization concept
• Matching Idea

Module 4: Accounting Methods in the O&G Industry

• Processes (equity and proportionate consolidation)
• Tax treatment accounting
• Legal framework selection
• Alternative methods

Module 5: Accounting Methodologies in the O&G Industry

• Methodologies of cash calls
• Development expenditures
• Costs borrowing

Module 6: Application of Joint Venture Accounting

• Audits
• Budgets
• Approvals
• Contributed property and accounting
• Relationship of under-lifting and over-lifting to recognition of revenue
• Operators’ responsibility
• Billing statement of cash calls

Module 7: Common Issues of Accounting in JV Agreements

• JV operational problems related to accounting
• Issues of cash call methodologies
• Issues of revenue recognition
• Issues of inventory valuation
• Issues of cost management and controls

Module 8: Handling issues of Accounting in JV Agreements

• IFRS
• De-recognition and control of assets
• Authorization and budgeting for expenses
• IAS 28 investments

Module 9: Standardised Organisations of Accounting and Finance in JVs

• Accounting Standards Board (ASB)
• The FASB
• The IASCF
• The SEC
• The IASC