Oil and Gas Accounting and Finance Masterclass

Why select this training course?

Businesses in the upstream sector are focused on these three areas: exploration, development, and production. Transportation is the only area of expertise for midstream enterprises. Businesses farther down the supply chain focus on refining and selling to consumers. Each has its specialized divisions to perform the many accounting activities required to accurately record expenses and income.

How does revenue accounting work in the oil and gas industry?

Revenue, the worth of the total sales a company makes, is vital in the Oil and Gas industry. This is because the industry is heavy on investments and has to recoup its investment. To calculate its revenue, an Oil and Gas company must multiply its sales by the average price of each product. The metric for measuring the effect depends on industry standards such as barrel, tonne, or others.

How are oil and gas capital projects financed?

The Oil and Gas industry is a capital-intensive industry that may require beyond the financial input of the founder or directors of an Oil and Gas company. As a result, much finance is needed to enhance operation and production. The following is how capital projects in the Oil and Gas industry can be financed: Equity Financing, Debt Financing, etc.

The Oil and Gas Accounting and Finance Masterclass by Rcademy is essential to accounting and finance professionals in the Oil and Gas industry because it has always been necessary for Oil and Gas companies to strike a balance between increasing their outputs, reducing the costs incurred in the production process, and increasing the profits of their investors. You must take this Rcademy course to better understand how the balance can be maintained and modern ways of financing in the Oil and Gas industry.

Who Should Attend?

The Oil and Gas Accounting and Finance Masterclass by Rcademy is specifically prepared for those who work or wish to work in the Oil and Gas industry. It is particularly suited to:

• Accountants in the finance departments of Oil and Gas companies
• Officials in charge of capital and finance management
• Members of Oil and Gas companies’ boards of directors
• Chief Financial Officers of Oil and Gas companies
• Bankers and officials of financial institutions that lend to Oil and Gas companies
• Government employees in the Ministry or Department of Petroleum Resources
• Legislators – Members of The Parliament, Senate, or Congress
• Academics, students, and professionals who want to gain more knowledge on Oil and Gas financing and accounting

What are the course objectives?

The Oil and Gas Accounting and Finance Masterclass by Rcademy is aimed at achieving the following set objectives so that participants can:

• Develop recommendations for the most suitable means of capital projects financing
• Understand the selection and management of the appropriate investments
• Identify and eliminate the various risks in the Oil and Gas industry
• Identify the challenges in the Oil and Gas sector and ways of solving them
• Prepare financial statements which are according to the International Financial Reporting Standards
• Identification of the best practices in the Oil and Gas industry
• Evaluation of proposals for capital investments in the Oil and Gas industry
• Practical usage of corporate governance in the management of the finance of an Oil and Gas company

How will this course be presented?

This Rcademy course has experts and specialists as its tutors. Thus, this course will be taught extensively from an informed perspective. This Rcademy course on Oil and Gas Finance and Accounting will be taught using slides and class materials with in-depth teachings. Participants will also be involved in the class through group discussions, class interactions, assignments, seminars, and presentations.

The participants will be exposed to real-life cases in the Oil and Gas industry that involve the various topics taught in this masterclass. They will also have access to annual reports of multinational Oil and Gas companies to better understand the issues.

What are the topics covered in the course?

Module 1: An Overview of the Oil and Gas Industry

• The Components or Sectors of the Oil and Gas Industry
  – The Upstream
  – The Midstream
  – The Downstream
• Activities involved in the industry
  – Exploration
  – Production
  – Transportation
  – Refining
  – Distribution
• Licensee to obtain to operate in the Oil and Gas Industry

Module 2: Overview of Revenue Accounting

• Meaning of Revenue Accounting
• Meaning of revenue
• Types of Revenue
  – Accrued revenue
  – Deferred revenue
• Classification of revenue
  – Operating revenue
  – Non-operating revenue
• Generation of revenue
• Revenue Vs Cash Flow

Module 3: Capital Projects Financing

• Understanding of the Oil and Gas Industry
• Identification of  risks in the Oil and Gas Industry
• Spotting opportunities for growth
  – Growth financing
  – Equity financing
  – Debt financing
  – The distinction between financing mechanisms
• Calculation of Returns on Investment (ROI)
  – Payback Period
  – Internal Rate of Return (IRR)
  – Net Present Value (NPV)
  – Accounting Rate of Return (ARR)
  – Adjusted Present Value (APV)
• Internal and External Capital Rationing

Module 4: Accounting in the Oil and Gas Industry

• Financial accounting principles
• Financial reporting
• Duties of finance experts in the Oil and Gas Industry
• An examination of reserves and resources
• Techniques for accounting in the Oil and Gas industry
• Accounting for Costs and Revenue

Module 5: Essential Financial Information

• Generally Accepted Accounting Principles (GAAP)
• International Financial Reporting Standards (IFRS)
• The differences between the two systems.
• Financial statements
  – Cash flow statement
  – Income statement
  – Balance sheet

Module 6: Different Agreements in the Oil and Gas Industry

• Joint Operation Agreements
• Production Sharing Contracts (PSCs)
• Joint Interest Accounting or Billing
• Capitalization of interests
• Business Combinations – IFRS 3
• Preparation and Presentation of Consolidated Statements – IFRS 10
• Joint Arrangements, Joint Operations & Joint Ventures – IFRS 11

Module 7: Analysing Finances of Oil and Gas Companies

• Financial statement analysis
• Performance analysis
• Classification of cost
  – Capital
  – Expenditure
  – Exploration costs
  – Development costs
  – Production costs
• Analysis and Impact of accounting methods on a Company’s financial statement
• Benchmarking and comparative analysis

Module 8: Accounting for Assets, Resources, and Reserves

• Definition of Terms
  – Assets
  – Resources
  – Reserves
• Reserves, size of resources, and their importance
• Classification of reserve
• Depreciation, Depletion, and Amortisation
• Application of the accounting tools
  – Ceiling test
  – Impairment test

Module 9: Financial Risk Management and Auditing

• Risk identification of risks in the Oil and Gas industry
• The procedure of assessing risks
• Risk management strategies
• Usage of Microsoft Excel for risk analysis
• Sensitivity analysis and charts
• Scenario analysis
• Monte Carlo simulation