EXPLORATION & PRODUCTION ACCOUNTING 1

OBJECTIVES

This introductory-level course provides a comprehensive overview of international accounting and finance practices in the E&P industry. It is particularly suitable for finance personnel who are new to the oil and gas industry, or want to gain a broader understanding of oil and gas financial policy, joint venture and cost-control topic areas.

MATERIALS OF TRAINING

• An overview of accounting policies and practices in the oil and gas industry
• An introduction to managing project, development and operating costs
• Understanding the accounting and financial management implications of exploring for and producing oil and gas
• The background to financial issues like joint ventures that are unique to the E&P industry, and their accounting treatment

WHO SHOULD ATTEND?

• Finance staff new to the industry who require a grounding in the various specialist discipline areas that typically comprise an oil and gas company finance function
• Finance personnel who are being developed for broader accounting and financial management responsibilities
• Audit and information systems staff who have frequent dealings with financial controls and systems
• Treasury and tax specialists who require a better understanding of E&P finance and accounting

COURSE CONTENT SUMMARY

1. Accounting policies

• How accounting policies influence the reporting of financial performance
• Successful efforts and full-cost accounting
• The use of reserve data in accounting calculations
• How to calculate depreciation, depletion and amortisation (DD&A)
• How to conduct an impairment test or ceiling test
• How to account for decommissioning costs

1. Joint-venture accounting

• Understanding a joint-venture (JV) agreement
• What a JV agreement states about accounting
• How to prepare and process a cash call
• Understanding JV billings - how to process a JV billing statement
• How to allocate JV costs

1. Cost control and analysis

• Project and development costs

          -AFEs and cost estimating

          -how to control capital expenditures

• How to estimate and control production operating costs

          -Fixed and variable cost analysis

          -Activity analysis

• Drilling costs

          -how to prepare well cost estimates

          -how to control drilling expenditure

          -how to forecast drilling AFE costs

          -how to review well costs post completion

INSTRUKTUR

Dr. Hanifah SE.,Ak.,Msi, CA & Team / Drs. Arif Budiarto , M.Si, Akuntan & Team