Fundamentals of Oil and Gas Accounting |Smart

Overview

Why Attend

A topic of global importance and of particular sensitivity in the Middle East is that of oil and gas. This course is designed to assist accountants in oil and gas organizations in understanding the accounting complexities particular to this industry. Accounting in the oil and gas industry is mostly about 'expensing' or capitalizing the billions of dollars paid in assets. The 'expensing' or capitalizing of these billions is decided using the successful efforts method or the full cost method which are both accounting essentials in the oil and gas industry. In this course these subjects are thoroughly discussed and explained.

The course starts with the history of this industry and explains the accounting methods discussed above. It goes on to discuss details of these methods such as treatment of unproved property and drilling or non drilling costs. The courses then tackles how the proper allocation of these costs affects company financials, as well as the depletion and depreciation of the capitalized assets. The course ends with the treatment of costs of support equipment and facilities.

Course Methodology

The course includes presentations, explanations and examples by the instructor. Participants will asked to calculate the proper amounts to capitalize or expense under the two methods. The course includes exercises, group workshops, presentations and a conceptual case study.

Course Objectives

By the end of the course, participants will be able to:

Generate accounts for oil and gas operations
Compare between the accounting methods of successful efforts and full cost accounting
Identify how to account for production activities
Account for revenues received in the oil and gas industry
Explain the accounts for joint interest operations
Analyze the effect of costs under different methods on financial statements

Target Audience

Professionals in the field of finance and accounting, chief accountants, GL accountants, finance managers and supervisors, general management team, and finance staff who need to get specialized knowledge of oil and gas accounting.

Target Competencies

Successful effort accounting methods
Full cost accounting method
Cost capitalization and depreciation
Cost allocation
Reporting of capitalized
Reporting of expensed costs

Course Outline

Introduction to oil and gas accounting
- History of oil and gas industry
- On shore activities
- Off shore activities
- Natural gas activities
- Industry structure and terminology
- Historical cost accounting methods
- Successful efforts accounting
- Full cost accounting
- Forms of division of revenue from oil and gas
Successful efforts accounting
- Explaining oil and gas accounting terms
- Non drilling exploration costs
- Oil and gas cost types
- Acquisition costs of unproved property
- Drilling and development costs
- Proved property cost disposition
- Accounting entries under successful efforts method
Full cost accounting
- Full cost method
- Disposition of capitalized costs
- Accounting entries under full cost method
Acquisition costs of unproved property
- Purchase in fee
- Internal costs accounting
- Options to purchase or lease
- Disposition of capitalized costs
- Impairment of unproved property
- Post balance sheet events
- Reclassification of property
Non drilling exploration costs
- Identification of exploration costs
- Geological and geophysical costs
- Carrying and retaining costs
- Test well contributions
Drilling and development costs
- Intangible drilling and development costs
- Exploratory drilling costs
- Development drilling costs
- Accounting entries to record drilling and development costs
Support equipment and facilities
- Costs and accounting issues of property, plant and equipment
- Applying different depreciation methods
- Revenue and capital expenditure
- Discarding and scrapping plant assets

Schedule & Fees

2026 Schedule & Fees

27 Sep - 1 Oct, 2026

English

Per participant USD 2,900

27 Sep - 1 Oct, 2026

Arabic

Per participant USD 2,900

25 - 29 Oct, 2026

English

Per participant USD 2,900

25 - 29 Oct, 2026

Arabic

Per participant USD 2,900

27 - 31 Dec, 2026

English

Per participant USD 2,900

27 - 31 Dec, 2026

Arabic

Per participant USD 2,900

2027 Schedule & Fees

24 - 28 Jan, 2027

English

Per participant USD 2,900

24 - 28 Jan, 2027

Arabic

Per participant USD 2,900

28 Mar - 1 Apr, 2027

English

Per participant USD 2,900

28 Mar - 1 Apr, 2027

Arabic

Per participant USD 2,900

25 - 29 Apr, 2027

English

Per participant USD 2,900

25 - 29 Apr, 2027

Arabic

Per participant USD 2,900

27 Jun - 1 Jul, 2027

English

Per participant USD 2,900

27 Jun - 1 Jul, 2027

Arabic

Per participant USD 2,900

25 - 29 Jul, 2027

English

Per participant USD 2,900

25 - 29 Jul, 2027

Arabic

Per participant USD 2,900

26 - 30 Sep, 2027

English

Per participant USD 2,900

26 - 30 Sep, 2027

Arabic

Per participant USD 2,900

24 - 28 Oct, 2027

English

Per participant USD 2,900

24 - 28 Oct, 2027

Arabic

Per participant USD 2,900

26 - 30 Dec, 2027

English

Per participant USD 2,900

26 - 30 Dec, 2027

Arabic

Per participant USD 2,900