Course description
Why select this course?
The Upstream Petroleum Accounting and Auditing Training course by Rcademy is designed to allow participants to understand its essential elements properly. Those are the terms of contracts, their types, their differences, and all the underlying concepts and frameworks. In addition, it covers all the necessary areas to provide anyone with the skills to upskill account auditing and evaluation functions. Consequently, participants are exposed to international standards and best practices for account preparation, improving financial performance, and contributing to the overall financial growth of their respective organizations.
What is upstream accounting and auditing?
Upstream Petroleum Accounting and Auditing covers the record, analysis, summary, report, and oversight of financial transactions in the petroleum production business. It involves finances, documentation, and checks and balances associated with raw material collection in a petrochemical entity.
Why should I study upstream petroleum accounting and auditing course?
The Upstream Petroleum Accounting and Auditing course first benefits individuals and the organizations they belong to. After taking the course, individuals will develop a more refined approach to financial conflict resolution in their respective organizations. The Rcademy course will also improve the ability of the company to discuss and finalize long and short-term upstream contracts that are beneficial to the company.
Upcoming start dates
Suitability - Who should attend?
At the end of The Upstream Petroleum Accounting and Auditing Training course by Rcademy, participants should be able to:
- Understand Upstream Contracts and the corresponding register for each contract
- Understand the terms of the contract, and distinguish the types of contracts in the upstream industry
- Be aware of best practices of contract negotiation and carry out effective negotiation
- Understand and develop the best auditing and accounting practices in the upstream industry
- Discover how to use available information as a benchmark for the performance of their organization
- Understand the risk associated with auditing and how to manage such forms of risks in the organization
- Improve the reliability of their organization’s financial reports
Training Course Content
Module 1: Introducing Upstream Contracts
- Overview of the Oil and gas industry
– Brief introduction
– Terminologies
– Structure - Upstream contracts and the law
– A legal framework for the contracts - Contract Formation
- Key players in the oil and gas industry
– Relationship network
– Influence - Fundamentals of oil and gas contracts
- Territories and national laws
Module 2: License and Ownership of Upstream Contracts
- The basics of petroleum contracts
– Joint venture
– License concession
– Product sharing agreement - Features of Upstream Contracts
- Realities of the oil and gas in commerce
- Oil and gas ownership
- Risk service contracts
- Resource holder rights grants
- Role of Government in upstream contracts
- Significant issues in multi-national contracts
– Framework for negotiations - Exploration and production agreements
– Key differences between the underlying registration
Module 3: Joint Operating Agreements and Product Sharing Contracts (PSCs)
- Overview of PSCs
– Types of Approach and Levels of Complexity - Exploring the role of calculation
– Understanding the formulas and application - New PSCs in significant jurisdictions
- Non-fiscal legal terms of a contract
- Taxes and royalties
– The R factors
– Taxation agreements - Fiscal areas of the contract
– Fiscal agreement
– Comparisons of fiscal systems and license fees - Penal costs and bonuses
- Joint ventures
– Nature
– Aim, functions - Government interests, purpose, and conditions for approval
Module 4: Service Contracts
- Service contracts
– Risk-bearing service contracts
– Non-risk-bearing service contracts - Model forms/sources of service contracts
- Insurance
– How to allocate risks - Master service contracts
- Farm in and Farm out
– Overview
– Nature
– Matter - Assignment and reservation of interests
- Unitisation
– Practice
– Transboundary unitisation - Unitisation and government approval
Module 5: Negotiation of Production Sharing Contracts (NPSC)
- The government stand
- The cost of negotiation production and sharing
- Details of negotiation NPSC
– Force majeure
– Resolving disputes
– Local contents - How to stabilize negotiation or renegotiate PSCs?
- PSA negotiation with the government
- Principles and best practices of negotiation
– Disadvantages of competitive negotiation
Module 6: Key Issues Facing Accounting and Auditing in the Upstream Petroleum sector
- Most recent Upstream Petroleum Accounting and Auditing issues
- Interest rates and the corresponding fluctuations
– Price of commodities
– Environmental contributions
– Overview and impacts - How financial and accounting issues affect strategy formation
– Stability and Growth in the Upstream Petroleum Sector - Annual financial reports from top players in the upstream petroleum sector
- The Importance of IFRS to the upstream oil and gas accounting
- The role of auditing
Module 7: Cost of Accounting and Revenue in the Upstream Petroleum Sector
- Recognizing revenues and IFRS
– Overview of contract-generated revenue with customers - The cost of the upstream process
– Acquisition
– Exploration
– Development and production - Exploration technicalities
- Best approaches to accounting
- Profit oil and cost oil
– Break-even oil - Evaluating the top players in the upstream industry
– Profitability
– Profit margins
– Financial reports
Module 8: Accounting and Evaluating Assets in the Upstream Petroleum Sector
- Resources and assets reserve
- Property, plant, and equipment
- Depletion, depreciation, and amortization
- Asset impairment
- Financial Instruments
– Possible liabilities and assets
– Intangible assets
Module 9: Corporate Governance, Creative Accounting and Auditing
- Creative accounting
- Corporate governance
- Published financial statements
- Audit board and committee
– Overview
– Roles and power - External auditing
– Presenting financial reports to investors - Internal auditing
Module 10: Roles and Functions of the Internal Audit
- The internal audit department
– Elements of an audit department
– Roles of staff within the department - Types of audits
- Internal audit examinations
- Substantive tests and audit control processes
- How to report audit findings?
- Post-audit activities
– Audit exit conference
– Post-audit reviews
Course delivery details
The training sessions will be handled by practicing and experienced professionals in different areas of interest. Most importantly, the course is designed to train participants through experience. The course has real-life upstream petroleum industry simulations, interactive sessions, videos, and group assignments to boost learning. In addition, the participants would be evaluated with a learner-friendly method. Finally, the participants would access handouts, videos, and recordings to facilitate revision.
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Rcademy
Rcademy is a global training and consultation organisation set out to bridge the gap between you now and what you can be in the near future. We are facilitators of knowledge impartation. Our team of established and experienced training enthusiasts...