Postgraduate Certificate in Advanced Oil and Gas Accounting: International Petroleum Accounting, Dubai KL London Abuja Colombo, Online

Advanced Oil and Gas Accounting: International Petroleum Accounting, Leading to Postgraduate Certificate in Advanced Oil and Gas Accounting: International Petroleum Accounting, Accumulating to a Postgraduate Diploma, with 180 Additional Credit-Hours. Click to download the PDF Brochure, for this Postgraduate Certificate Programme.

Programme contents include Organisational Tasks, Division of Work/Labour, Delegation of Role, Task, Power, Authority in a Project Management and General Organisational Setting, Responsibility for Task Performance in an Organisation-Wide Setting, Stratigraphic Test Well  or Exploratory well, Service well, Dry hole, Dual completion, Dry natural gas
natural and artificial lifts,
Oil and Gas production and Sales, Some State and US Federal Oil and Gas Drilling Regulation, Maximum Efficiency Drilling Rate (MER), The Concept of Peak Oil, Historical cost accounting methods, Historical Development of accounting methods and current status, Introduction to successful efforts accounting, Chart accounts for successful efforts company, Oil and Gas subsectors – Upstream, Mid-Stream and Downstream, Horizontal, Vertical and Full Integration within the Oil and Gas Industry, Addressing Problems associated with Oil and Gas Accounting, Nondrilling Exploration Costs, Successful Efforts, Introduction to Full Cost (FC) Accounting, Distinguishing between Non-drilling and Drilling Costs, Cost of Identifying areas that might warrant exploration, Cost of topographical, geological and geophysical studies, Cost of carrying and retaining undeveloped properties, Dry hole contribution, Cost of drilling and equipping exploratory well, Cost of drilling exploratory type Stratigraphic test well, Successful Efforts– Exploration Cost, Accounts for a full cost company, G&G costs, Reconnaissance survey, Detailed Survey, Shooting Rights, Obtaining G & G Permits, Exchanging C & G Studies for Property Interest.

Programme Coordinator:

Prof. Dr. R. B. Crawford is the Director of HRODC Postgraduate Training Institute, A Postgraduate-Only Institution. He has the following Qualifications and Affiliations:

Doctor of Philosophy {(PhD) {University College London (UCL) - University of London)};

MEd Management (University of Bath);

Postgraduate (Advanced) Diploma Science Teacher Ed. (University of Bristol);

Postgraduate Certificate in Information Systems (University of West London, formerly Thames Valley University);

Diploma in Doctoral Research Supervision, (University of Wolverhampton);

Teaching Certificate;

Fellow of the Institute of Management Specialists;

Human Resources Specialist, of the Institute of Management Specialists;

Member of the Asian Academy of Management (MAAM);

Member of the International Society of Gesture Studies (MISGS);

Member of the Standing Council for Organisational Symbolism (MSCOS);

Member of ResearchGate;

Executive Member of Academy of Management (AOM). There, his contribution incorporates the judging of competitions, review of journal articles, and guiding the development of conference papers. He also contributes to the Disciplines of:

Human Resources;

Organization and Management Theory;

Organization Development and Change;

Research Methods;

Conflict Management;

Organizational Behavior;

Management Consulting;

Gender & Diversity in Organizations; and

Critical Management Studies.

Professor Dr. Crawford has been an Academic in the following UK Universities:

University of London (Royal Holloway), as Research Tutor;

University of Greenwich (Business School), as Senior Lecturer (Associate Professor), in Organisational Behaviour and Human Resource Management;

University of Wolverhampton, (Wolverhampton Business School), as Senior Lecturer (Associate Professor), in Organisational Behaviour and Human Resource Management;

London Southbank University (Business School), as Lecturer and Unit Leader.

His responsibilities in these roles included:

Doctoral Research Supervisor;

Admissions Tutor;

Postgraduate and Undergraduate Dissertation Supervisor;

Programme Leader;

Personal Tutor

For Whom This Course is Designed

While Petroleum – Oil and Gas – Exploration, Development and Production appear to be at their peak in a number of countries, there are others where they are at the growth stage, some such as Uganda, are still at the exploration stage, with development, and subsequent production, expected to commence within the next few months. Shale Gas Exploration is in its advanced stage in the UK, with its Development and Production having achieved economic prominence in countries such as Algeria, Argentina, Australia, Brazil, Canada (which has also been expanding its Oil Sands Production), China, Indonesia, Mexico, Russia, South Africa, and United States.

This Programme seeks to equip students with a Postgraduate Diploma, which will greatly enhance their employability and career advancement within the International Petroleum – Oil and Gas – Industry. The 3 Months Intensive Full-Time, or 20 Weeks Video-Enhanced Online, Programme leads to a Postgraduate Diploma in Advanced Oil and Gas Accounting: International Petroleum Accounting..

and Successful Efforts Accounting Methods;

Aspirants to employment within the International Petroleum – Oil and Gas – Industry;

Asset Accountants;

Board Members;

Chief Accountants;

Chief Executive Officers (CEOs);

Chief Executives;

Chief Financial Officers (CFOs);

Chief Operations Officers (COOs);

Cost Accountants;

Drilling & Refinery Managers;

Energy Ministry Personnel;

Engineers;

Entrepreneurs;

exploration, production, and accounting systems.

Finance Directors;

Finance Managers;

Financial Accountants;

Financial Analysts;

Financial Controllers;

General Managers;

Geologist;

Government Ministers;

Government Regulators;

Internal and External Auditors;

International Petroleum – Oil and Gas – Workers seeking to enhance their career prospects within the industry;

Joint Operation Facilitators;

Joint Venture Accountants;

Joint Venture Accountants;

Junior Managers;

Legal Personnel interested in developing expertise in Mineral Rights, Lease, Contracts and related aspects of International Petroleum – Oil and Gas – Operation

Management Accountants;

Management Accountants;

Managing Directors;

Managing Directors;

Marketing & Sales Directors & Managers;

Middle Managers;

New Graduates seeking a Career Focus;

Oil and Gas Accountants desirous of acquiring expertise in Full Cost Accounting

Others interested in the operation of the Oil and Gas Industry, its regulation;

Petroleum Department Personnel;

Project Managers;

Public Accountants;

Revenue and Custom Representatives;

Senior Executives;

Senior Financial Accountants;

Senior Management Accountants;

Senior Managers;

Senior Petroleum - Oil and Gas – Accountants;

Senior Public Administrators;

Strategic Business Unit (SBU) heads;

Strategic Planners;

Supervisors;

Supervisory Board Members;

Team Leaders;

Treasury Officers;

Venture Capitalists;

All others desirous of enhancing their expertise in the areas of Petroleum – Oil and Gas Accounting: International Petroleum Accounting, Strategic Management, Project Management, Organisational Analysis and Design.

 

Classroom-Based Duration and Cost:

Classroom-Based Duration:  6 Weeks (5 Days per Week)

Classroom-Based Cost:     £30,000.00 Per Student

Online (Video-Enhanced) Duration and Cost

Online Duration:                  10 Weeks – 3 Hours Per Day, 6 Days Per Week

Online Cost:                        £20,100.00 Per Student

 Classroom-Based Programme Cost includes:

Free Continuous snacks throughout the Event Days;  

Free Hot Lunch on Event Days;                           

Free City Tour;             

Free Stationery;                               

Free On-site Internet Access;

Postgraduate Diploma/ Diploma – Postgraduate –or

Certificate of Attendance and Participation – if unsuccessful on resit.

 Students and Delegates will be given a Selection of our Complimentary Products, which include:

 Our Branded Leather Conference Folder;

Our Branded Leather Conference Ring Binder/ Writing Pad;

Our Branded Key Ring/ Chain;

Our Branded Leather Conference (Computer – Phone) Bag – Black or Brown;

Our Branded 8-16 GB USB Flash Memory Drive, with Course Material;

Our Branded Metal Pen;

Our Branded Polo Shirt.;

Our Branded Carrier Bag.

 

Daily Schedule: 9:30 to 4:30 pm.

Delivery Locations: 

Central London, UK;

Dubai, UAE;

Kuala Lumpur, Malaysia;

Amsterdam, The Netherlands;

Brussels, Belgium;

Paris, France; and

Durban, South Africa;

Other International Locations, on request.

Advanced Oil and Gas Accounting: International Petroleum Accounting, Leading to Postgraduate Certificate in Advanced Oil and Gas Accounting: International Petroleum Accounting, Accumulating to a Postgraduate Diploma, with 180 Additional Credit-Hours. Click to download the PDF Brochure, for this Postgraduate Certificate Programme.

 

Programme Objectives

By the conclusion of the specified learning and development activities, delegates will be able to:

Module 1

Demonstrate an understanding of the organisation, as an entity, as opposed to other groups;

Demonstrate an understanding of the different levels and types of organisations and objectives;

Formulate project objectives;

Demonstrate an understanding of the meaning of collegiality within a project management and general organisational setting;

Demonstrate an understanding of an organisation or its subsystem’s need to meet the expectations of the external environment;

Demonstrate an awareness of the consequences of failure to meet the organisations external accountability;

Demonstrate an understanding of the importance of delegation;

Demonstrate the competence in managing the delegation process effectively;

View external  accountability as the expectations of the organisation by different agencies;

Demonstrate their understanding of the requirement of different external agents; 

Assess the consequence to the organisation of its failure to meet the requirements of particular agencies;

Determine the ways in which an organisation might meet its varying accountability requirements;

Assess the organisation’s strengths and weaknesses;

Determine the opportunities that are available to the organisation and how it might best take advantage of it;

Analyse the threats that the organisation faces and how they might be circumvented;

Conduct an effective SWOT analysis, taking account of the political, economic, social, and technological factors into account;

Analyse their organisation using PEST, PESTEL and LONGPEST factors into account;

Develop an awareness for their own strengths and weaknesses;

Develop a strategy for maintaining their strengths while developing their weak areas;

Determine factors within their work environments that are stressors;

Manage their workload in such a way that they reduce the negative effects of their associated stressor;

Manage their time effectively, contributing to individual success and organisational improvement;

Put forward their points without generating negative reaction from others;

Manage their interaction with colleagues and managers, in such a way that they get their desired results;

Define strategic management and explain its five special elements;

Explain the core areas of strategic management and how they link together;

Distinguish between process, content and context of a strategy;

Explain the nature and importance of green strategy;

Outline the extent to which strategic management differs in public and non-profit organisations;

Explain the difference between national and international strategic management;

Identify the causes of an organisational failure;

Explain why it is important to study the environment of the organisation;

Outline the main environmental influences on the organisation and relate the degree of change to prescriptive and emergent strategic approaches;

Identify the green strategy issues that must be tackled by the organisation;

Undertake a PESTEL analysis of the general influences on the organisation;

Understand the implications of market growth and market cyclicality for strategic management;

Define strategy dynamics;

Identify the various approaches of strategy dynamics;

Outline the main considerations in the development of purpose including green strategy;

Explore the organisation’s vision for the future and its strategic implications;

Analyse the balance of power amongst stakeholders in the organisation;

Develop a mission for the organisation;

Define the objectives of the organisation to be achieved by its strategies;

Outline the chief areas of corporate governance that will influence strategy and decision making at the centre of the organisation;

Show how ethics and corporate social responsibility shape the purpose of the organisation;

Design a research project, taking account of important issues;

Choose sources of information appropriate for the type of research being conducted;

Assess the value of secondary sources of information as a prelude to the conduct of primary research;

Choose the methodology that best suits the type of investigation being conducted & appropriate to the research objectives;

Choose the most appropriate data elicitation techniques, in relation to the sampling frame, sampling unit, sample size & time span, among other factors;

Advise others of the situations in which participant observation, conversation analysis, documentary analysis, focus groups, interviews & questionnaires, respectively, are appropriate;

Design interviews and questionnaires that will elicit information appropriate to the research objectives;

Design structured and unstructured questions, determining the conditions under which they should be used;

Design questionnaires and interview schedules, with a mixture of open-ended & closed-ended questions, avoiding forced-choice in the latter;

Employ appropriate data analysis techniques, based on the type & volume of data available;

Use SPSS and, or, Excel software packages in analysing data;

Identifying ‘trends’ & ‘patterns’ in information, in an effort to arrive at conclusions;

Produce effective reports, adhering to conventional styles, presenting evidence from the data, & exploiting visual representations;

Make research proposals, taking pertinent factors into account;

Manage research projects, from inception to reporting;

Identify appropriate roles in research project management & produce realistic costing;

Design a research project that incorporates a high ethical standard;

Determine and develop a project life cycle;

Determine the activities and problems associated with each stage of the project life cycle;

Be able to conduct an effective cost benefit analysis;

Determine the cost effectiveness of a project or a stage in its life cycle;

Demonstrate an understanding of the system’s approach to project management;

View project management in a holistic manner;

Draw on the concept of ‘equifinality’ in managing the different project stages;

Establish an effective planning mechanism that will facilitate effective project implementation;

Will determine the most effective control mechanism to employ in project management;

Solicit evaluate and communicate information effectively for the enhancement of project decision making;

Be aware of the five bases of coordination and determine which is appropriate for a particular situation;

Determine the factors, which contribute to workers’ resistance to change;

Suggest the efforts, which an organisation might employ to reduce workers’ resistance to change;

Demonstrate their awareness of change management and human resource implications;

Distinguish between change strategies and approaches to change;

Illustrate the advantages and disadvantages of each strategy

Manage latent and manifest resistance to change;

Determine the situations when a particular approach might be appropriate;

Determine the most effective ways of communicating change decisions to workers;

Illustrate the advantages and drawbacks of group involvement in decisions related to change;

Design measures, which will ensure change institutionalisation;

Demonstrate leadership in the implementation of change, whilst avoiding whilst avoiding Human and Organisational Casualties;

Determine the value of information in project methodology;

Demonstrate their understanding of different project methodologies, determining their benefits and pitfalls for particular types projects;

Determine the most appropriate methodology for individual situations;

Demonstrate an understanding of the concept of motives and their value in organisational and subsystem effectiveness;

Distinguish between the different sets of motivation theories, notably content, process and reinforcement;

Demonstrate their ability to translate motivation theory into practice;

Evaluate the appropriateness of the application of particular theoretical aspects of motivation to specific situations;

Demonstrate their ability to formulate a comprehensive motivation strategy;

Critically appraise existing motivation strategy within their organisations, identifying and addressing gaps;

Formulate a workable motivation strategy;

Follows the common trends in the popular motivation theories;

Demonstrate their appreciation of the need for a variance in intrinsic and extrinsic values if motivation;

Demonstrate how popular motivation theories have contributed to our understanding of worker behaviour;

Locate performance related pay, productivity bonuses and other remuneration inducement within existing motivation theory;

Illustrate how the contingency approach to motivation might be applied to different situations;

Indicate the part that training and development play in worker motivation;

Manage the process of motivation, taking account of socio cultural and economic differences;

Manage the motivation process, taking account of the differences in preferences and expectation of workers;

Apply the ‘equity’ theory to work situation from a ‘differentiation perspective’, rather than an ‘equality perspective’;

Have an awareness of the fundamental issues associated with organisational design and their implications for effective organisational functioning;

Demonstrate their ability to design an appropriate organisational structure that takes account of contingent internal and external environmental factors; and

Demonstrate their appreciation and understanding of how organisations, and particularly managers, might control, modify or re-engineer their work environment through a study of management/leadership styles, control systems, organisational development and learning.

Module 2

Demonstrate an understanding of the oil and gas industrial and the activities of each subsector;

 Demonstrate an awareness of the salient issues associated with the development of the United States   oil and gas industry, as a mark car to International oil and gas exploration developments and its mining  operations;

  Address the geological issues relating to the origin, exploration and production of oil and gas;

  Outline the methods of production, employed in the oil and gas industry;

 Describe the methods of exploration generally used within the oil and gas industry;

 Explain the contractual issues that are associated with oil, gas and mineral lease;

 Address problems and issues associated with upstream oil and gas operation;

Outliner the role of finance and accounting in an Oil and Gas Organisations;

Demonstrate an appreciation of financial reporting policies and practices applicable in Oil and Gas Industry;

Distinguish between the different types of wells;

Distinguish between natural and artificial lifts, in oil and gas production;

Demonstrate a working knowledge of Amortization, with particular reference to the oil and gas industry.

Work through examples of Amortization of exploration and development costs of proved developed reserves;

Accurately account for ‘Disposition’ of capitalized costs, in reference to the impairment of unproved properties.

Appropriately address Disposition of capitalized costs from the surrender or abandonment of property;

Distinguish between 3D and 4D Seismic;

Explain, with examples, Overriding Royalty Interests (ORI);

Distinguish between Mineral Rights, Mineral Interests and Fee Interests;

Discuss, with examples, the benefits and drawbacks of nonworking interest;

Distinguish between Non-drilling and Drilling Costs;

Appropriately apportion costs to non-drilling and drilling operations, respectively;

Explain the basic principles of Successful Efforts Accounting in Oil and Gas;

Demonstrate mastery of the concepts and issues associated with exploration and drilling operation; and

Explain, with minor omissions, the processes involved in oil and gas acquisition, exploration and mining.

Module 3

Demonstrate a heightened understanding of the differing levels of Financial Reporting Regulation and Standardization, as they apply to Oil and Gas Accounting;

Demonstrate a heightened understanding of salient accounting concepts and governance

Demonstrate a heightened understanding of the differing levels of regulation and standardization applied to Oil and Gas accounting;

Deconstruct the role of finance and accounting in an Oil and Gas Organisation;

Exhibit a heightened understanding of the requirements of International Financial Reporting Standards;

Demonstrate a heightened ability to analyse their company’s performance, as an oil and gas player or regulator;

Demonstrate their ability to determine the extent to which financial measurement techniques such as full cost, successful efforts and reserve recognition can be used to evaluate oil and gas producing operations;

Exhibit their ability to utilise Advanced Financial Measurement Techniques such as full cost, successful efforts and reserve recognition are used to evaluate oil and gas producing operations;

Exhibit their ability to manage risk effectively in oil and gas project contracts, averting pitfalls of key contractual clauses;

Demonstrate the most appropriate contract formulation for Take-or-pay thresholds, accounting, transportation agreements, tariffs, reserving pipeline capacity, respectively;

Determine the roles and interplay of the Governments of territories containing hydrocarbon reserves, National Oil Companies, International Oil Companies, the Major Product Suppliers, the Engineering & Contracting Companies and the Service Companies,

Suggest the principal standard form contracts used in the industry including the North Sea LOGIC/CRINE standard form contracts and the Association of Independent Petroleum Negotiators (AIPN) standard form contracts;

Explain the international dispute resolution framework and institutions in the context of expert decisions, mediation arbitration and litigation.

Module 4

Determine to what entity is SFAS 143 applicable;

Identify the results of legally enforceable obligations;

Site examples of AROs where the company is normally legally obligated;

 Know what should be considered in identifying obligating events that require recognition of an asset retirement obligation;

Determine the effect of initial recognition of asset retirement obligation liability;

Learn that ARO must be initially measured based on fair value in compliance with SFAS No. 143;

Distinguish the traditional approach from Expected cash Flow Approach;

Define a credit-adjusted risk-free rate;

Explain the concept of market risk premium;

Find out when companies should recognise the changes in the liability for the retirement asset obligation resulting from the passage of time or revision to either the timing or the amount of the original estimated future cash flows;

Discuss how the changes in the asset retirement obligation due to the passage of time should be measured;

Learn how accretion expense is computed through the interest method of allocation.

Know when loss or gain recognised upon settlement of ARO;

Determine how changes due to revised estimates of the amount or timing of the original undiscounted cash flows are recognised;

Know how frequently an ARO should be assessed to determine whether a change in the estimate of the ARO is necessary;

Determine the effects of the existence of a fund or provision of assurance by a firm that it will be able to satisfy its asset retirement obligations;

Explain conditional AROs;

Identify what must be disclosed by a company reporting a liability for its asset retirement obligations;

Determine the applicability of SFAS No. 144;

Classify assets according to its group;

Define “impairment” in accordance with SFAS no. 144 definition;

Determine whether a long-lived asset to be held and used is impaired and explain the three-step approach to recognise and measure an impairment loss;

Cite circumstances that may trigger impairment testing;

Know when a company is requires to test long-lived asset for recoverability;

Establish how impairment is measured;

Ascertain the accounting and reporting requirements related to long-lived assets that are to be disposed of either by sale, abandonment or exchange for other productive assets;

Determine when long-lived assets to be sold are still classified as “held for sale”;

Determine inclusions in the term” component of an entity” in relation to disposal group;

Define the following concepts:

API gravity

BS & W

Btu

Casing head gas

Casing head gas.

City gate

Commingled gas.

Dissolved gas

Field facility

Gas balancing agreement

Gas settlement statement

Gauging

Heater-treater

LACT unit

Local distribution company (LDC)

Mcf

Natural gas

Non-associated gas

Tapping

Thief

Tank strapping

Separator

Explain the importance of the measuring process to the accountants;

Identify the process in measuring crude oil;

Recognise the importance of run ticket calculation and describe the process used to complete a run ticket determine a net volume from a tank run;

Determine the changes in crude oil marketing and differentiate the marketing adopted in the past with the present;

Distinguish the process involved in natural gas measurement from oil measurement;

Know the present method of selling natural gas as distinguish from the method employed in the past;

View an example of division contract;

Determine the correct division of the revenue from sale of oil and gas among owners of economic interest according to the ownership interest shown on the division order;

Be familiar with the process involved in unitization of properties;

Determine who is responsible for paying the severance taxes, the royalty owners and other owners of economic interest;

Give the step-by-step process in recording oil revenue;

Cite the usual reason of producing companies for exchanging crude oil;

Know the importance of converting gas measurements to MMBtu and to Mcf for purposes of recording gas revenue;

Ascertain the appropriate thing to do to allow venting or flaring of gas;

Determine the condition required to allow selling of unprocessed natural gas;

Discuss the procedures involved in natural gas processing;

 Know the importance of gas storage;

Find out the requirement of contracts with take-or-pay provisions;

Know when revenue of crude oil and natural gas sales should be recognised;

Know when, who and how payments to royalty owners and other owners of economic interest are made;

Discuss about gas imbalances;

Differentiate produces gas imbalances from pipeline gas imbalances;

Discern how oil and gas are allocated;

Determine what causes payment of minimum royalty;

Enumerate the different nondrilling costs;

Know the accounting treatment for acquisition costs;

Know the tax treatment of costs related to drilling operations;

Specify some typical lease and well equipment;

Categorise the revenue arising from the production and sale of oil and gas products;

Identify the two important expenses connected with lifting and treating the oil and gas and differentiate one from the other;

Enumerate the situations under which losses from unproductive property may be taken for tax purposes;

Discuss the concept of percentage depletion and give the circumstances under which it is allowed;

Determine what areas of oil and gas are applicable to “property”;

Know what IDCs are recaptured as ordinary income;

Know how acquisition costs should be treated;

Know how revenue by a lessor as his share of production is treated;

Cite the importance of joint operations in oil and gas exploration and production;

Identify the different types of contracts that may be involved in joint operations;

View a model form of operating agreement;

Define the following terms used in the contract that are frequently subject to questions or interpretation:

Affiliate

Agreement

Controllable Material

Equalized Freight

Excluded Amount

Field Office

First level Supervision

Joint Account

Joint Operations

Joint property

Laws

Material

Non-Operators

Offshore Facilities

Off-site

On-site

Operator

Parties

Participating Interest

Participating party

Personal expenses

Railway receiving point

Shore base facility

Supply store

Technical Services

Identify the inclusions in statement and billings to be provided by the operator to all nonoperators;

Explain “cash calls” or advanced payment by the nonoperators;

Determine the period adjustments to billing or cash advance may be made;

Determine the period when expenditure audits may be allowed;

Explain the provision on approvals of parties;

Explain the necessity of allocations in the course of joint operations;

Discuss the following costs that are normally treated as direct costs in various COPAS accounting procedures:

Rentals and royalties

Labour

Material

Transportation

Services

Equipment and facilities furnished by operator

Affiliates

Damages and losses to joint property

Legal Expense

Taxes and permits

Insurance

Communications

Ecological, Environmental, and Safety

Abandonment and reclamation

Other expenditure

Enumerate the three types of overhead (Indirect Cost);

Differentiate the two methods of computing overhead – Fixed rate or percentages basis;

Differentiate construction overhead form catastrophe overhead;

Discuss the pricing of joint account material purchases, transfer and dispositions.

Explain the different special pricing provisions;

Know the importance of maintaining a detailed record of controllable materials and the conduct of regular physical inventories;

Determine the situation when special inventory is required;

Identify the different direct charges for purposes of joint interest accounting;

Explain how proportionate consolidation methods in joint ventures are done, through:

Booking charges to the joint account: accumulation of joint costs in operator’s regular account

Booking charges to the joint account: distribution of joint costs as incurred;

Know what triggers the occurrence of nonconsent operations; and

Determine how materials purchased are charged.

Modules 5

Determine the three (3) basic methods of conveying mineral interest;

Distinguish between operating (working) interests and nonoperating (nonworking) interests;

Differentiate basic working interest and joint working interest;

Define Basic Royalty Interest (RI), Royalty Interest (ORI), Production Payment Interest (PPI) and Net Profits Interest;

Summarise the conveyance rules contained in SFAS No. 19;

Cite the requirements of SFAS No. 153 for “Exchanges of Nonmonetary Assets”;

Identify the transactions considered as farm-out;

Define the terms farm-in and farm-out;

Discuss the concept of farms-in/farms-out with a reversionary working interest;

Specify the accounting treatment for a free well arrangement;

Determine under what situation sole risk arises;

Identify who is considered as a carried interest or carried party in a sole risk;

Describe a situation considered as a joint venture under paragraph 47e of SFAS No. 19;

State the effect of pooling and unitization;

Distinguish pooling from unitization;

Give the purpose of unitization;

Compute barrels for pay-out, proved reserves and proved developed reserves;

Determine what are involved in the sale of oil and gas property;

Summarise the accounting treatment of the sales of oil and gas properties;

Discuss the accounting treatment of a sale of the entire interest in an unproved property;

Specify the special accounting treatment given to sales of partial interest in an unproved property;

Know when loss and gain are recognised in sales of an entire interests in a proved property;

Give an example illustrating the accounting procedure for proved property sales;

Indicate the accounting treatment for sales of partial interest in proves property;

Know how loss or gain is determined when the entire working interest in a proved property is sold and a nonworking interest is retained;

Explain how production payment interest is created;

Discuss the accounting treatment for retained production payment;

Know what the seller and buyer must do when the retained production payment is reasonably assured;

Know how the conveyance is treated in case the retained production payment is not reasonably assured;

Cite the effect of curved-out production payment to the working interest owner;

Specify the concept of carved-out production payment payable in money;

Discuss the concept of carved-out production payments payable in product or volumetric production payment;

Compare the treatment of conveyances under successful efforts and full cost accounting;

Identify the companies required to present disclosures under SFAS No. 69 and discuss the applicable rules in such disclosure;

Identify the test in determining whether an enterprise is having significant oil and gas producing activities for purposes of the application of the disclosure requirement;

Enumerate the information required to be disclosed by publicly traded companies in their annual financial statements;

Distinguish between deterministic and probabilistic reserve estimation methodology;

Identify the type of reserve that may be reported under SFAS No. 69;

Define the term “reserve”;

Compare developed proved reserve and undeveloped proved reserve;

Explain why SFAS required the use of year-end price in estimating reserve;

State the purpose of reserve quantity disclosure;

Determine how and what are included in the disclosure of capitalised cost relating to oil and gas producing activities;

Cite the importance of disclosing information about property acquisition, exploration and development activities;

Give the relevance of the disclosure of the results of operations for oil and gas producing activities;

Explain the concept of Standardised Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserve Quantities;

Enumerate the sources of change required to be reportedly separately if individually significant;

Analyse the reason for changes under the following:

Sales and transfers

Extensions, discoveries, and improved recovery

Estimated future development costs

Development costs incurred during the period that reduce future development costs

Revision Quantity

Accretion of discount;

Give examples of payment considered as fiscal system;

Explain concessionary system and give the obligations and rights of parties therein;

Identify the owner of the tile the oil or gas under the concessionary system;

Identify the parties in a concessionary agreement;

Determine the extent of the participation if the government in concessionary agreements;

Describe the applicable rules under the contractual system;

Identify the role of the government in a contractual system;

Know what triggered the existence of production sharing contract (PSC);

Specify the common feature of concessionary agreements and PSC;

Define a signing or signature bonus and production bonus;

Explain why the inclusion of royalty provision is considered as an interesting feature of production sharing contracts;

 Know how some PSC’s allowed the government to participate in oil and gas projects;

Enumerate the information required to be specified under the contract relative to cost recovery;

Enumerate the common order of cost recovery;

Explain what constitute profit oil or profit gas;

Explain capital uplifts, ringfencing, domestic market obligation and royalty holidays and tax holidays;

Distinguish between risk service contracts and nonrisk service contracts;

View a model form of international joint operating agreement;

Differentiate recoverable and non-recoverable costs;

Differentiate financial accounting and contract accounting;

Enumerate the issues to be resolved to compute entitlement reserves;

State the importance of reporting the company’s net prove reserves separately;

Explain the relevance of International Financial Reporting Standards (IFRS) in addressing accounting issues in the upstream oil and gas industry;

Give the difference between the financial statements of an oil and gas industry with the other industries;

Identify the primary source of data necessary to compute most of the ratios unique to oil and gas companies;

Cite the different purposes in evaluating financial statements and other reports;

Determine the relevance of benchmarking in the oil and gas industry;

Specify the functions of reserve replacement ratio;

Specify the function of reserve life ratio;

Define gross wells and net wells;

Determine the use of ratio of net wells to gross wells;

Know how average reserves per well ratio evaluate a company’s future profitability;

Compute the daily production per well;

Identify the basis of reserve cost ration;

Determine what makes calculating and using the finding cots per BOE (based on energy content) ratio difficult;

Know the basic formula for computing BOE;

Distinguish DD&A from lifting costs;

Be familiar with the formula for computing value of proved reserve additions per BOE;

Know the importance for maximising the value added ratio;

Enumerate the different ratios that are frequently used in the financial statement analysis;

Determine the formula for the following:

Current ratio

Quick ratio

Working capital

Debt to stockholders equity

Debt to assets

Times interest earned

Net income to sales

Return on stockholder’s equity

Return on assets

Cash flow from operations to sales

Price/earnings ratio

Price/cash flow ration

Advanced Oil and Gas Accounting: International Petroleum Accounting, Leading to Postgraduate Certificate in Advanced Oil and Gas Accounting: International Petroleum Accounting, Accumulating to a Postgraduate Diploma, with 180 Additional Credit-Hours. Click to download the PDF Brochure, for this Postgraduate Certificate Programme.

Programme Contents, Concepts and Issues

Module 1

Strategic Management, Project Management, Organisational Analysis and Design Course

M1 – Part1: Organisational Analysis an Internal View

 Definition of Organisation

Organisational Objectives,

The Collegium

Organisational Tasks

Division of Work/Labour

Delegation of Role, Task, Power, Authority in a Project Management and General Organisational Setting

Responsibility for Task Performance in an Organisation-Wide Context and Project Setting

Organisational Accountability: Internal and External

Internal Accountability: Worker Accountability to Team Managers and Project Leaders

Authority

Two Facets of Authority

The Second Facet of Authority

Traditional Authority

Legitimate Authority

Professional Authority

Power

M1 – Part 2: Organisational Analysis: A Strategic View

External Organisational Accountability

Accountability to Owners/Sponsors    

Accountability to Clients/Users/Customers

Accountability to Creditors

Accountability to Sector or Industry

Accountability to the State – Government, Generally; Regulatory Authorities (E.g. Office of Fair Trading, Competition Commission, Trading Standards, Sector Regulators, City Regulators

 

M1 – Part 3: Organisational Analysis: A Strategic View

Organisational Internal Analysis:

Organisational Strengths and Weaknesses Analysis

Organisational External Analysis: Opportunities and Threats Analysis

Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis

External Global Analysis; Local, National, Global Analyses of PEST Factors or LONGPEST Analysis

Political, Economic, Social, Technological, European, Legal Analysis or PESTEL Analysis

 

M1 – Part 4: Methods of Data Gathering

Questionnaire, Interview and Scalar Checklist Design

Information Gathering: Documentary Analysis, Conversation Analysis and Interviewing,

Levels of Participant Observation

The Complete Participant As Observer: Making ‘Detached Observations’

Information Processing: Data Analysis and Interpretation 

M1 – Part 5: The Individual in a Dynamic Environment

Individual Strengths and Weaknesses Analysis

Work Pressure as a ‘Stressor’

Dealing with Work Pressure

Time Management and ‘Accounting Throughput’

Pragmatic Assertiveness: Improving Your Ability to Question and Challenge

M1 – Part 6: Encouraging Lateral Thinking

Brainstorming,

Forced Associations,

Metaphors,

Analogies

M1 – Part 7: An Introduction to Strategic Management

Strategy: A Definition

The ‘Strategy Process’

What Makes Effective Strategy?

Defining Strategic Management

Three Core Areas of Strategic Management

Strategic Analysis

Strategic Development

Strategy Implementation

Three Elements of the Strategic Decision

Five Key Elements to Strategy

Levels of Strategy:

Corporate Level

Business Level

What Makes “Good” Strategy?

Two Main Test Areas for Strategy

Application-Related

Academic Rigour

Prescriptive Model of Business Strategy

Emergent Model of Business Strategy

What Is Green Strategy and Where Does It Fit In?

Why Do Companies Fail?

M1 – Part 8: Analysing the Strategic Environment

Analysis of the Main Elements of the Environment

Analysing the Strategic Environment

The Ten Basic Analytical Tools

Steps in Taking the Analytical Tools

Customer Profiling

Segmentation and Positioning

Analysing the Strategic Environment: The Ten Basic Analytical Tools

How Do We Analyse The Strategic Environment?

Five Political Trends That Have Affected Strategic Management

Government and Industrial Policy

M1 – Part 9: Strategy Dynamics: Prescriptive Purpose Delivered Through Mission, Objectives and Ethics

What Is Strategy Dynamics?

Various Approaches of Strategy Dynamics

Understanding the Organisation’s Purpose

Developing the Purpose of the Organisation

Identifying a Vision for the Future

Coping With Stakeholder Power

Developing Corporate Governance, Ethics and Corporate Social Responsibility (CSR)

What is Corporate Governance?

Ethics and CSR

Developing The Organisation’s Mission and Objectives

How to Formulate A Mission Statement

“What’s The Difference between Visions, Mission and Objectives?”

How to Develop Objectives

Mission and Objectives: Prescriptive and Emergent Approaches

Purpose and Quality Issues

Total Quality Management (TQM)

Project Totality: A Systems View of Project Management

M1 – Part 10: Project Life Cycle

Planning – Conceptualisation, Analysis, Proposal, Justification, Agreement

Doing – Start-Up, Execution, Completion, Hand Over

Checking – Review

Acting – Feedback

Development of a Project Life Cycle, Project Brief and Proposal

The Management of Change

The Systems Approach to Project Management

The Requirements of Successful Project Management

Balancing Costs and Benefits

Managing the Planning Process

Critical Incident Analysis

Project Control Mechanism

The Value Chain: Adding Value to Processes, Products and Processes

Project Decision-Making

Project Coordination: The 5 Bases of Co-Ordination

Developing A CATWOE Focus of Project Management

 

M1 – Part 11: Project Management: Approaches and Methodologies

An Introduction to Structured Systems Analysis and Design Method (SSADM)

Feasibility Study

Project Definition and Profile

Deciding on Analytical and Project Approach

Analytical Toolkit

Project Methodologies – Iterative Through to Waterfall

Joint Application Design (JAD)

Process Re-Engineering

RUP

Rapid Application Development (RAD)

Process Mapping/Modelling

CASE

Facilitation/Workshop

Data Modelling

Strategy

Creativity Reviewing

The Bigger Picture

Objectivity

Testing Techniques

Prototyping

Cause and Effect Analysis

Root Cause Analysis

 

M1 – Part 12: Motivating Workers in a Project Setting

Directing or Leading

The Concept of Motivation

Theories of Motivation

Equitable Reward Systems

Designing an Effective Motivation Strategy

The Collectivist vs. the Individualist Perspective of Motivation

Common Trends in Motivation Theories

 

M1 – Part 13: Organisational Design: Structuring and Restructuring Organisations

An Introduction to Organisational Design: Approaches to Organisational Design - Classical, Neo-Classical and Contingency Approaches

Organisational Structure: Internal and External Relationships. Vertical and Horizontal Relationships

Lines of Authority and Accountability

The Functional Structure

The Divisional Structure and Its Internal Relationships

Basis of Divisionalisation

The Divisional Structure Compared with the Functional Structure on the Basis of Communication, Co-Ordination, Autonomy, Control and Flexibility

The Organisation of the Matrix Structure Decision-Making and Communication Patterns in Functional, Divisional and Matrix Structures Compared

 

Module 2

Upstream Oil and Gas Accounting and Contracts: Oil and Gas Operation, Mineral Rights, Leases and Successful Efforts Accounting

M2 - Part 1: Upstream Oil and Gas Operations

Introducing the Oil And Gas Industry

Brief History of the U.S. Oil and Gas Industry

Origin of Petroleum

Anticline

Exploration methods and procedures

3-D Seismic

4-D Seismic

Acquisition  of mineral interests in property

 Mineral Rights

 Mineral Interests

Fee Interests

Overriding Royalty Interests (ORI)

Retained ORI production payment Interest (PPI)

Dutch Carved-out production payment

Carved-out net profits interest  created from working interest

Net profits interest created from mineral interest

Oil, Gas and Mineral Lease Provisions

Lease bonuses

Royalty provision

Primary term

Delay Rental Payment

Shut-In payment

Right to Assign Interest

Right to free use of resources for lease operations

Option payment

Offset Clause

Addressing problems and issues associated with upstream oil and gas operation.

 

M2 - Part 2: Introduction to Oil and Gas Accounting (1)

Oil and Gas Drilling Operations

BOP (blowout preventer)

Bottom-hole pressure

Bottom-hole pump

Drill string

Rat hole

Mouse hole

Drilling platform

Drilling rig

Proved area

Drill stem test

Derek and Derek Hands

Cracking

Field

Christmas tree

Sedimentary rock

Seismic exploration

Development well Flowing well

Injection well

Offset well

Stratigraphic Well

 

M2 - Part 3: Introduction to Oil and Gas Accounting (2)

Stratigraphic Test Well  or Exploratory well

Service well

Dry hole

Dual completion

Dry natural gas
natural and artificial lifts

Oil and Gas production and Sales

Some State and US Federal Oil and Gas Drilling Regulation

Maximum Efficiency Drilling Rate (MER)

The Concept of Peak Oil

Historical cost accounting methods

Historical Development of accounting methods and current status

Introduction to successful efforts accounting

Chart accounts for successful efforts company

Oil and Gas subsectors – Upstream, Mid-Stream and Downstream

Horizontal, Vertical and Full Integration within the Oil and Gas Industry.

Addressing Problems associated with Oil and Gas Accounting

 

M2 - Part 4: Nondrilling Exploration Costs – Successful Efforts 

Introduction to Full Cost (FC) Accounting

Distinguishing between Non-drilling and Drilling Costs

Cost of Identifying areas that might warrant exploration

Cost of topographical, geological and geophysical studies

Cost of carrying and retaining undeveloped properties

Dry hole contribution

Cost of drilling and equipping exploratory well

Cost of drilling exploratory type Stratigraphic test well

Successful Efforts– Exploration Cost

Accounts for a full cost company

G&G costs

Reconnaissance survey

Detailed Survey

Shooting Rights

Obtaining G & G Permits

Exchanging C & G Studies for Property Interest

 

M2 - Part 5: Acquisition Costs of Unproved Property – Successful Efforts

Carrying and retaining costs

Delayed Rental Property Taxes

Legal cost for title defense

Clerical and record-keeping costs

 Test-well contributions

Dry hole contribution

Bottom-hole contribution

Support equipment and facilities

Problems

Offshore and International operations

 Purchase in fee (Fee Purchase)

 Internal costs

 Options to lease

 Delinquent taxes and mortgage payment

 

M2 - Part 6: Acquisition Costs of Unproved Property – Successful Efforts

Successful Efforts Acquisition Costs

Internal Costs

Options to lease

Delinquent tax and Mortgage Payments

Top Leasing

Amortization

Amortization of exploration and development costs of proved developed reserves

Impairment

Disposition of  capitalized costs – impairment of unproved properties

Disposition of  capitalized costs – surrender or abandonment of property

Post balance sheet events

Disposition of capitalized costs – reclassification of an unproved property

Land department

Addressing Issues and Problems in unproved property acquisition costs

Module 3

Advanced Oil and Gas Accounting: International Petroleum Accounting (1)

M3 - Part 1: Accounting Concepts

The Money Measurement Concept

The Entity Concept

The Going Concern Concept

The Dual Aspect Concept

The Accounting Period Concept

Materiality (Proportionality) Concept

The Conservatism Concept

Consistency Concept

The Realization Concept

The Matching Concept

The Cost Concept

 

M3 - Part 2: Financial Governance and Standardization Institutions

Financial Accounting Standard Board (FASB)

The Security and Exchange Commission (SEC).

Accounting Standards Board (ASB)

International Accounting Standards Committee (IASC)

International Accounting Standards Committee Foundation (IASCF)

International Financial Reporting Standards  (IFRS)

Industry Specific Oil and Gas Accounting Standards

Generally Acceptable Accounting Principles (GAAP) for Oil and Gas Producing Activities

Oil Industry Accounting Committee (OIAC)

 

M3 - Part 3: Drilling Development Costs – Successful Efforts

 Income tax accounting for drilling costs

IDC vs. Equipment

Intangible Drilling  Costs (IDC)

Up to an including the installation of Christmas Tree

Prior to Drilling

G & G

Preparation of Site

During Drilling

Drilling contractor’s charges

Drilling mud, chemicals, cement, supplies

Fuel

Wages

Well testing

At Target depth and during completion

Well testing

Perforating and cementing

Swabbing, acidizing and fracturing

Labour related to the installation of subsurface equipment

Plugging and abandoning cost – for dry wells

After Christmas tree – following completion

Removal of Drilling Rig

Restoration of land and damages paid to surface owner

Wells other than Exploration and development Wells

Intangible costs for extending well (see lists 1 & 2, above)

Intangible costs incurred in drilling water supply and injection wells

Intangible costs incurred in drilling water and injection – where water well is being used to for exploration and development well or for injection.

Financial accounting for drilling and development costs

Well classification

Exploratory well

Service well

Stratigraphic test well

Proved developed oil and gas reserves

Proved undeveloped reserves

Successful Efforts, exploration costs

 Exploratory drilling costs

 Development drilling costs

 Stratigraphic test wells

 AFE’s and drilling contracts

 Special drilling operations and problems

 Workovers

 Damaged or lost equipment  and materials

 Fishing and side tracking

Abandonment of portions of wells

Additional development costs

Development costs

Costs of gaining access and preparing well location for drilling

Costs of drill and equip development well, development-type Stratigraphic test well

Cost of acquiring , constructing and installing production facilities, e.g. lease 

Support equipment and facilities

 Drilling and development seismic

Post-balance sheet events

Accounting for suspended well costs

Interest capitalization

Offshore and international operations

Problems and Issues Associated with Successful Efforts Accounting for Drilling Development Cost

 

M3 - Part 4: Proved Property Cost Disposition – Successful Efforts

Costs of Property

Cost of lease and well equipment

Cost disposition through amortization

Reserves owned or entitled to

DD&A calculation

DD&A on a field-wide basis

DD&A when oil and gas reserve are produced jointly

Estimated future dismantlement, site restoration, and abandonment costs

Exclusion of costs or reserves

Depreciation of support  equipment and facilities

Cost disposition – nonworking interests

Revision of DD&A rates

Cost disposition through abandonment or retirement of proved property

Successful efforts impairment

Problems

 

M3 - Part 5: Full Cost Accounting

Principles of Full Cost Oil and Gas Accounting

Disposition of capitalized costs

Inclusion of estimated future development expenditures

Inclusion of estimated future decommissioning costs

Exclusions of costs

Impairment of unproved properties costs

Abandonment of properties

Reclassification of properties

Support equipment and facilities

DDA&A under successful efforts versus full cost

Reserves in place – purchase

Interest capitalization

Limitation on capitalized costs – a ceiling

Asset retirement obligations

Deferred taxes

Income tax effects

Assessment of the ceiling test

SFAS No. 144 and Full Cost Ceiling Cost

Post-balance sheet events and the ceiling test

Problems and Issues associated with Full Cost Accounting

 

M3 - Part 6: Accounting For Production Activities (1)

Accounting treatment

Cost of production versus inventory

Recognition of inventories

Lower-of-cost-or-market valuation

Accumulation and allocation of costs

Individual production costs

Secondary and Tertiary recovery

Gathering systems

Saltwater disposal systems

Tubular goods

Severance taxes

 

M3 - Part 7: Accounting For Production Activities (2)

Production cost statements

Joint interest operations

Decision to complete a well

Project analysis and investment decision making

Payback method

Accounting rate of return

Net present value method

Internal rate of return

Profitability index

Problems and Issues associated with Accounting For Production Activities

 

Module 4

Advanced Oil and Gas Accounting: International Petroleum Accounting (2)

M4 - Part 1: Accounting For Asset Retirement Obligations and Asset Impairment

 Accounting For Asset Retirement Obligations

Scope Of SFAS No. 143

Legally Enforceable Obligations

Obligating Event

Asset Recognition

Initial Measurement – Fair Value

Traditional Approach

Expected Cash Flow Approach

Credit-Adjusted Risk-Free Rate

Market Risk Premiums

Subsequent Recognition and Measurement

Changes Due to the Passage of Time

Interest Method of Allocation

Funding and Assurance Provisions

Gain or Loss Recognition Upon Settlement

Changes Due to the Revisions in Estimates

Reassessment

Funding And Assurance Provision

Conditional AROs

Reporting And Disclosures

Accounting for the Impairment and Disposal of Long-Lived Assets

Scope

Asset Groups

Long-Lived Assets to be Held and Used

Indications of Impairment

Testing For Recoverability

Measuring Impairment

Long-Lived Assets To Be Disposed of:

Long-Lived Assets To Be Disposed of Other Than by Sale

Long-Lived Assets To Be Disposed of By Sale

Disposal Groups

Impairment For Full Cost Companies

Problems and Exercises Associated With Accounting for Asset Retirement Obligations and Asset Impairment

 

M4 - Part 2: Accounting For Revenue from Oil and Gas Sales

Definitions

API Gravity

BS & W

Btu.

Casing Head Gas

Casing Head Gas.

City Gate

Commingled Gas.

Dissolved Gas

Field Facility

Gas Balancing Agreement

Gas Settlement Statement

Gauging

Heater-Treater

LACT Unit

Local Distribution Company (LDC).

Mcf

Natural Gas

Non-Associated Gas

Tapping

Thief

Tank Strapping

Separator

Measurements and Sale of Oil and Natural Gas

Crude Oil Measurement

Run Ticket Calculation

Crude Oil Sales

Natural Gas Measurement

Natural Gas Sales

Standard Division Order

Determination Of Revenue

Utilizations

Oil And Gas Revenue

Recording Oil Revenue

Crude Oil Exchanges

Recording Gas Revenue

Vented or Flared Gas

Non-Processed Natural Gas

Natural Gas Processing

Stored Natural Gas

Take-Or-Pay Provisions

Timing of Revenue Recognition

Revenue From Crude Oil

Revenue From Natural Gas

Revenue Reporting To Interest Owners

Additional Topics

Gas Imbalances

Producer Gas Imbalances

Pipeline Gas Imbalances

Allocation of Oil and Gas

Minimum Royalty – An Advance Revenue to Royalty Owners

Addressing Problems and Issues Associated with Accounting for Revenue from Oil and Gas Sales

M4 - Part 3: Pertinent Oil and Gas Tax Accounting

Lessee’s Transactions

Non-Drilling Costs

Acquisitions Costs

Drilling Operations

Equipment Costs

Production Operations

Losses From Unproductive

Percentage Depletion

Property

Recapture of IDC and Depletion

Lessor’s Transactions

Acquisition Costs

Revenue

Addressing Problems And Issues Associated With  Basic Oil And Gas Tax Accounting

 

M4 - Part 4: Joint Interest Accounting

Joint Operations

Joint Venture Contracts

The Joint Operating Agreement

The Accounting Procedure

General Provisions: Accounting Procedure - Definitions

 

Affiliate

Agreement

Controllable Material

Equalized Freight

Excluded Amount

Field Office

First Level Supervision

Joint Account

Joint Operations

Joint Property

Laws

Material

Non-Operators

Offshore Facilities

Off-Site

On-Site

Operator

Parties

Participating Interest

Participating Party

Personal Expenses

Railway Receiving Point

Shore Base Facility

Supply Store

Technical Services

Statements and Billings

Advances and Payments by Parties

Adjustments

Expenditure Audits

Approval by Parties

General Matters

Amendments

Affiliates

Direct Charges

 

Rentals and Royalties

Labour

Material

Transportation

Services

Equipment and Facilities Furnished by Operator

Affiliates

Damages and Losses To Joint Property

Legal Expense

Taxes And Permits

Insurance

Communications

Ecological, Environmental, and Safety

Abandonment and Reclamation

Other Expenditures

Overhead

Overhead – Drilling and Producing Operations

Technical Services

Overhead – Fixed Rate Basis

Overhead – Percentage Basis

Overhead – Major Constructions and Catastrophe

Amendment of Overhead Rates

Material Purchases, Transfers, and Dispositions

Direct Purchases

Transfers

Pricing

Freight

Taxes

Condition

Other Pricing Provisions

Dispositions And Surplus

Special Pricing Provisions

Premium Pricing

Shop-Made Items

Mill Rejects

Inventories of Controllable Material

Directed Inventories

Non-Directed Inventories

Operator Inventories

Non-Operator Inventories

Special Inventories

General Provisions

Definitions

Statements and Billings

Advances and Payments by the Parties

Adjustments

 

M4 - Part 5: Joint Interest Accounting: Direct Charges, Materials, Offshore Operations and Audits

Direct Charges

Account

Direct Costs

Rentals and Royalties

Labor, Materials and Supplies

Transportation

Services

Exclusively Owned Equipment and Facilities of The Operator

Affiliates

Damages and Losses

Legal Expenses

Taxes, Licenses, Permits, Etc

Insurance

Communications

Ecological and Environmental Costs

Abandonment and Reclamation

Offices, Camps, and Miscellaneous Facilities

Other Costs

Pricing of Joint Account Material Purchases, Transfers and Dispositions

Charges To Joint Interest Accounting

Booking Charges to the Joint Account: Accumulation of Joint Costs in Operator’s Regular Account

Booking Charges to the Joint Account: Distribution of Joint Costs as Incurred

Non-Consent Operations

Accounting  for Materials

Offshore Operations

Joint Interest Audits

Module 5

Advanced Oil and Gas Accounting: International Petroleum Accounting (3)

M5 - Part 1: Conveyancing For Oil and Gas Operation

Mineral interests

Types of interest

Basic Working Interests (WI)

Joint Working Interest

Basic Royalty Interest (RI)

Overriding Royalty Interest (ORI)

Production Payment Interest (PPI)

Net profit Interest

Conveyances: General Rules

Conveyances: Exchange and Poolings

Farm – ins/farm outs

Farm – ins/farm outs with a reversionary working interest

Free wells

Carried interests or sole risk

Joint venture operations

Poolings unitizations

Unitizations

Participation Factors

Computation of Barrels for payout

Computation of proved Reserves

Computation of proved developed reserves

Conveyances: Sales

Unproved property sales

Sales of entire interest in unproved property

Sales of partial interest in unproved property

Proved property sales

Sales and purchases of a partial interest in proved property

Sales of working interest in a proved property with retention of nonworking interest

Conveyances: production payments

Retained production payments

Retained production payments payable in money – reasonably assured

Retained production payments payable in money – not reasonably assured

Carved-out production payments payable in product or volumetric production payment (VPP)

Conveyances-full cost

Problems and Issues associated with Conveyance

 

M5 - Part 2: Oil and Gas Disclosures

Required disclosures

Illustrative example

Proved reserve quantity information

Reserve definitions

Proved reserves

Proved developed reserves

Proved undeveloped reserves

Use of end-of-year prices

Reserve quantity disclosure

Capitalized costs relating to oil and gas producing activities

Costs incurred for property acquisition, exploration, and development activities

Results of operations for oil and gas producing activities

Standardized measure of discounted future net cash flows relating to proved oil and gas reserve quantities

Future cash inflows

Future development and production cost

Future income tax expenses

Future cash flows

Discount

Changes in the standardized measure of discounted future net cash flows relating to proved oil and gas reserve quantities

Analysis of reasons for changes in value of standardized measure 12/31/XB

Sales and transfers, net of production costs

Changes from extensions, discoveries, and improved recovery

Changes in estimated future development costs

Development costs incurred during the period that reduce future development costs

Analysis of changes in development costs

Revision Quantity

Accretion of discount

Conclusion

Problems and issues that address Oil and Gas Disclosures

 

M5 - Part 3: Accounting For International Petroleum Operations

Petroleum fiscal systems

Concessionary systems

Concessionary agreements with government participation

Contractual systems

Government involvement in operations

Government participation   

Back in

Production sharing contracts

Signature and production bonuses

Royalties

Government participation

Cost recovery

Profit Oil

Other terms and fiscal incentives

Service Contracts

Joint operating agreements

Recoverable and non-recoverable costs

Financial accounting issues

Financial accounting versus contract accounting

International accounting standards

Problems

 

M5 - Part 4: Analysis of Oil and Gas Companies’ Financial Statements

Contractual systems

Government involvement in operations

Production sharing contracts      

Signature and production bonuses

Royalties

Government participation

Cost recovery

Profit oil

Other terms and fiscal incentives

Capital uplifts

Ringfencing

Domestic market obligation

Royalty holidays and tax holidays

Service contracts

Joint operating agreements

Financial Accounting Issues

Financial accounting VS Contract Accounting

Disclosure of proved reserves – SFAS No. 69

Disclosure of reserves

International Accounting Standards

M5 - Part 5: Analysis of Oil and Gas Companies’ Financial Statements

Source of Data

Historical cost-based

Future value-based

Production

Productive wells and acreage

Undeveloped acreage

Drilling activity

Present activities

Delivery commitments

Comparing financial reports

Reserve ratios

Reserve replacement ratio

Reserve life ration

Net wells to gross wells ratio

Average reserves per well ratio

Average daily production per well

Reserve cost ratios

Finding costs ratios

Lifting costs per BOE

DDA&A per BOE

Reserve value ratios

Value of proved reserve additions per BOE

Value added ratio

Financial ratios

Liquidity ratios

Current ratio

Quick ratio

Working capital

Financial strength ratios:

Debt to stockholder’s equity

Debt to assets

Times interest earned

Profitability ratios

Net income to sales

Return on stockholder’s equity

Return on assets

Cash flow from operations to sales

Price/earnings ratio

Price/cash flow ratio

Advanced Oil and Gas Accounting: International Petroleum Accounting, Leading to Postgraduate Certificate in Advanced Oil and Gas Accounting: International Petroleum Accounting, Accumulating to a Postgraduate Diploma, with 180 Additional Credit-Hours. Click to download the PDF Brochure, for this Postgraduate Certificate Programme.