Course object

• appreciate the financial impact of your day-to-day decisions and actions
• work more confidently and effectively with colleagues on financial matters
• improve the quality of information you receive from and provide to Finance
•  increase the success rate of requests for authorisation of expenditure and make more       
• Effective use of funds allocated
• use departmental budgets and monthly management reports to help you exercise  
• Financial control of your area of operations
• understand the financial information disclosed in your company's annual report and accounts
• Learning throughout the program will be reinforced by case studies, worked
• Examples and illustrative extracts from oil and gas company annual reports

Courses outline

• The Business and Project Economics
• The Business Environment

• Business objectives
• Stakeholders
•  Corporate governance

• The E&P Business

• Risk and reward
• Commercial arrangements
• The field life cycle

• Project Economics

• Project cash flows
• The time value of money
• Discounting and the cost of capital
•  Project economic models
• Decision criteria

•  Accounting, Exploration and Development Costs
• The Accounting System

• Capturing and recording data
• Cash and accruals
• The balance sheet
• The income statement and profit measurement
• Accounting principles and standards

•  Capital and Operating Expenditure

•  Matching costs and benefits
•   Assets and expenses

• Exploration and Appraisal Costs

•  Full cost and successful efforts
• Intangible assets

• Development costs

•  Commitments
• Tangible assets

•  Reserves, Production and Cost of Sales
•   Reserves of Oil & Gas

• Classification of reserves
•  Reserve quantity disclosures

• Production Costs

•  Lifting costs
•  Maintenance costs
•  Royalties

• Depreciation, Depletion and Amortisation (DD&A)

•  Unit of Production (UOP) method
•  Changes in costs and reserves

• Ceiling or Impairment Tests

•  Test requirement and process
• Accounting for test results

• Decommissioning, Removal and Restoration

•  Obligations to remove and restore
• Reporting of decommissioning liabilities and costs

•  Risk and Cost Sharing Arrangements

• Joint Ventures
•  Cash calls
•   Billing statements
•  Entitlements and liftings

• Transfers of interests or risks

•  Farm outs
• Carried interests

• Production sharing contracts

• Cash flow implications
• Reserve implications

• Long-term gas contracts

• Pricing mechanisms
• Take or pay

•  Financial Analysis, Budgets and Management Reports
• Analysis of Financial statements

•  Profitability, liquidity and solvency
•  Investment measures

• Budgets

•   Authorisation of expenditure
•  The budget process

•  Management reports

•   Responsibility reporting
•  Analysis of variances