Advanced Oil & Gas Accounting; International Petroleum Accounting (3)

Institution HRODC Postgraduate Training Institute, A Postgraduate-Only Institution
Method At the institution
Location London
Type Postgraduate
Course fee By request

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Advanced Oil & Gas Accounting; International Petroleum Accounting (3)

Practical experience Use of Video Cases; Written Cases; Simulations and Industrial Visits.
Entry requirements 1st Degree or Equivalent Qualification
Academic title Diploma - Postgraduate in Advanced Oil & Gas Accounting: International Petroleum Accounting (3)
Course description
Programme for Advanced Oil and Gas Accounting (3)

Day 1 – CONVEYANCES

General Contents, Concepts and Issues
- Mineral interests
(1) 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
(1)   Farm – ins/farm outs

(2)   Farm – ins/farm outs with a reversionary working interest

(3)   Free wells

(4)   Carried interests or sole risk

(5)   Joint venture operations

(6)   Poolings unitizations

(7)   Unitizations
- Participation Factors
Computation of Barrels for payout

Computation of proved Reserves

Computation of proved developed reserves

Conveyances: Sales

(1) Unproved property sales
- Sales of entire interest in unproved property
- Sales of partial interest in unproved property
(2) 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

(1) Retained production payments
- Retained production payments payable in money – reasonably assured
- Retained production payments payable in money – not reasonably assured
(2) Carved-out production payments payable in product or volumetric production payment (VPP)
- Conveyances-full cost
. Problems and Issues associated with Conveyance
Day 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

Day 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

Day 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
Day 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