Training Course in Upstream Petroleum Accounting for |Smart

Overview

Why Attend

This course offers a specialised Upstream Petroleum Accounting Training Course, designed to provide professionals with detailed knowledge of financial practices pertaining to the upstream oil and gas industry.

The extensive training enables attendees to sharpen essential skills in exploration and production accounting with emphasis on financial peculiarities of upstream operations. Beginning with an overview of the oil and gas industry seen from the upstream sector structure and various key processes, attendees will then proceed into the domain of petroleum economics covering cost recovery, royalties, and production sharing contracts (PSCs).

Other important modules consist of joint venture accounting concerning cost allocation, cash call management, and joint interest billing (JIB). Attendees will navigate through capital and operating expenditure (CapEx and OpEx) tracking, and methods of financial reporting according to international standards including IFRS and US GAAP, with a special focus on reserves reporting and impairment testing.

The course also delves into revenue recognition, inventory valuation, and depreciation methods for the upstream industry. Analysts will be given knowledge of internal controls, audit requirements, and risk management practices in petroleum accounting.

At the end of this course, attendees will be able to operate petroleum accounting software, analyze financial statements of exploration and production companies, and contribute to decision-making processes from accurate financial analysis. This training will be highly useful for analysts who want to enhance their skills in upstream oil and gas financial operations.

Course Objectives

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

Objective:

At the end of The Upstream Petroleum Accounting Training course attendees should be able to:

Enhance knowledge of exploration and production accounting.Build competency in handling joint venture accounts, cost sharing, and revenue reporting.Enable professionals to comply with industry-specific financial regulations and standards.Strengthen the ability to use financial data for decision-making and performance evaluation in upstream petroleum projects. Understanding Upstream Contracts and the corresponding register for each contract; Understanding the terms of the contract and distinguishing the different types of contracts that are in the upstream industry.Knowing best practices of contract negotiation and effectively negotiate.Explaining and developing the best auditing and accounting practices in the upstream industry.Knowing how to make use of available information as a benchmark for the performance of their organisationKnowing the risks involved in auditing and how to manage those types of risks within the organisationKnow how to enhance the credibility of their organisation's financial reports. Who should attend?

This course is ideal for:

Project Managers that need to understand the accounting intricacies of Upstream PetroleumGeneral managers that oversee budget planning and marketing strategiesLegal Counsels that are specialists in the field of finance and offer legal servicesInsurance professionals that need to gain financial insights into the valuation of oil and gas companiesInternal and External Financial Auditors in the Upstream Petroleum sector that desires to know the peculiarities of the oil and gas sectorInvestment and financial analysis professionals that provide consulting services for their clients interested in Upstream PetroleumGovernment regulatory and auditing professionals formulate policies and guidelines to coordinate the activities of oil companiesHow Will Attendees Benefit?

The Upstream Petroleum Accounting Training Course for Analysts will give the attendees many practical and strategic benefits. These range from:

Enhancement in Technical Knowledge: Will enable the course attendees to start with solid foundations regarding accounting principles and financial reporting standards that are relevant to the upstream oil and gas industry.Industry Skills: These include exploration and production accounting, joint venture cost and revenue recognition as well as production sharing contracts all specifically related to upstream operations.Analytical Skills: Use this unique training and acquire skills to unlock complex financial data, determine key cost drivers, and make decisions based on financial analyses.Guided in Compliance: Know accounting standards such as IFRS and US GAAP and other petroleum industry-specific requirements, thereby supporting accurate and credible financial reporting.Hands-on Software Practice: Get exposed to petroleum accounting applications and software to enable efficient financial reporting and data analysis.Strategic Decision Support: Provided with thorough integration in upstream projects' budget planning, risk management, and financial control strategies.

Course Outline

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

Schedule & Fees

2026 Schedule & Fees

11 - 15 Oct, 2026

English

Per participant USD 2,900

11 - 15 Oct, 2026

Arabic

Per participant USD 2,900

1 - 5 Nov, 2026

English

Per participant USD 2,900

1 - 5 Nov, 2026

Arabic

Per participant USD 2,900

2027 Schedule & Fees

10 - 14 Jan, 2027

English

Per participant USD 2,900

10 - 14 Jan, 2027

Arabic

Per participant USD 2,900

31 Jan - 4 Feb, 2027

English

Per participant USD 2,900

31 Jan - 4 Feb, 2027

Arabic

Per participant USD 2,900

11 - 15 Apr, 2027

English

Per participant USD 2,900

11 - 15 Apr, 2027

Arabic

Per participant USD 2,900

2 - 6 May, 2027

English

Per participant USD 2,900

2 - 6 May, 2027

Arabic

Per participant USD 2,900

11 - 15 Jul, 2027

English

Per participant USD 2,900

11 - 15 Jul, 2027

Arabic

Per participant USD 2,900

1 - 5 Aug, 2027

English

Per participant USD 2,900

1 - 5 Aug, 2027

Arabic

Per participant USD 2,900

10 - 14 Oct, 2027

English

Per participant USD 2,900

10 - 14 Oct, 2027

Arabic

Per participant USD 2,900

31 Oct - 4 Nov, 2027

English

Per participant USD 2,900

31 Oct - 4 Nov, 2027

Arabic

Per participant USD 2,900

Training Course in Upstream Petroleum Accounting for Analysts

Overview

Why Attend

Course Objectives

Course Outline

Schedule & Fees

2026 Schedule & Fees

2027 Schedule & Fees