Accounting Training for the Oil and Gas Industry: Introduction to Oil & Gas Accounting

About the Course

This oil and gas accounting training course will begin with a brief review of the technical aspects of a petroleum company’s value chain – upstream, midstream and downstream – and a typical petroleum project lifecycle from exploration to operations, sales and decommissioning.

It will pay specific attention to the financial and non-financial risks associated with each phase that the accountant needs to be aware of.

The course will cover the main terminology and industry jargon. The instructor will then analyse, assess and interpret the accounting-specific activities, discuss petroleum finance and accounting principles, and identify the challenges associated with each phase, including the terminology used.

• Detail accounting and reporting implications during each phase
• Describe some revenues and costs at each stage where applicable
• Worked examples to differentiate between the different accounting treatments at each stage

This oil & gas accounting course will dissect some select oil and gas contracts, in particular, JV agreements (JOAs and PSCs) and illustrate how an accountant can best interpret and account for the various elements of the agreements and what actually happens in practice.

Who Will Benefit

• Finance personnel new to the oil and gas industry who need to understand the specialist disciplines that comprise the oil and gas company finance function
• Finance personnel who are looking at joint venture, production, cost and revenue accounting, operational budgeting, capital budgeting, activity based costing and standard costing
• Audit staff
• Treasury and tax specialists who want a broader understanding of the accounting issues in oil and gas

Key Learning Objectives

• Review the overall petroleum value chain and an oil and gas project value chain
• Gain an awareness of the key accounting issues confronting oil and gas companies
• Develop a detailed understanding of the key accounting principles specific to the oil and gas industry
• Review cost allocation methodologies for exploration, development and production activity
• Gain an insight into accounting for oil and gas revenue
• Differentiate between the various agreements used in the oil and gas industry (JOA, PSC etc.) and their specific accounting treatment
• Understand the role of the petroleum accountant in corporate governance
• Develop perspectives on the information needs of various stakeholders (internal and external)

Course Information

Instructional Delivery Method: In Person
Prerequisite & Advanced Preparation: Reading material will be sent prior to the course

Delivered by Inderpal Singh

Inderpal is a Chartered Accountant with more than 15 years’ experience in the resources sector. He is Managing Director of Singh Oil & Gas Consultants which is a specialist consultancy providing audit services to the oil and gas industry.

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