Course Duration (4 days)
This course allows personnel who don’t have a financial background to understand the basic principles, theory and practice of financial reporting and analysis as they apply to the oil and gas industry.
What will be taught?
How to interpret, understand and act on financial information
How to develop more effective decision-making skills
Elements of financial management specific to the oil and gas industry
A conceptual understanding of key E&P accounting topics including depreciation, reserves, decommissioning, and asset impairment tests
The course uses a combination of instruction, group discussions and practical examples and exercises to ensure delegates absorb both the theory and the practical application of the topics.
Who Should Attend?
This course is aimed at non-financial personnel at all levels and in all disciplines in the oil and gas industry who want to develop a better understanding of finance and budgeting.
Course Content Summary
Sources and uses of financial information
• sources of financial data
• financial information systems
• uses of financial information for decision-making
Understanding financial information
• understanding basic principles
• the profit and loss account
• the balance sheet
• the importance of working capital and how to control it
• the difference between capital expenditure and operating expenditure
• understanding the difference between cash flow and profit
• how to control cash flow
• techniques for measuring financial performance
• how to measure financial performance
• how to compare the performance of different petroleum companies
Oil & Gas industry accounting policies
• how to account for exploration and appraisal costs
• understand the nature and classification of reserves and the use of reserve data in E&P accounting
• DD&A – the basic concepts and examples of the Unit of Production calculation
• understand asset impairment tests
• how to account for decommissioning
• a review of a sample set of E&P company published accounts
Effects of taxation
• how tax effects profit and cash flow
• the impact of tax on decisions
Budget preparation and control
• the role of financial planning
• how to prepare a budget
• how to control a budget