Delivery Schedules
Day 1
Getting Started
Identifying the financial responsibilities of the non-financial manager
The language of the Oil and Gas Finance business
Core Financial Principles
Core accounting concepts
Accounting rules, standards and policies
Generally Accepted Accounting Principles (GAAP) and other common terms
The Balance Sheet – what are assets and liabilities?
The Profit Statement – when do assets become expenses?
Expenditure: when is this an asset and when is it a cost to the business?
Concepts – depreciation and accruals
Overheads and cost allocation
The Cashflow statement and the difference between Profit and Cashflow
Real E&P Business scenarios – Reflecting transactions in financial statements

Day 2
Oil and Gas Industry Accounting Principles – overview
The upstream life-cycle
Accounting concepts in the Oil and Gas Industry – capitalise or expense?
Full Cost method
Successful Effort method
Successful efforts accounting principles
Appraisals
Pre-Licencing
Acquisitions
Exploration
Development
Production
Impairment
Decommissioning
Real E&P Business scenarios –accounting for typical E&P transactions and producing financial
statements

Day 3
Oil and gas reserves
Estimating reserves from an accounting perspective
Accounting for resources and reserves
The impact of reserves on depletion, depreciation and amortisation Acquisitions of reserves through business combinations
Reserves reporting
Real E&P Business scenarios – calculating and analysing oil and gas reserve ratios and financial
statements
Corporate Value
What is corporate value and how is it created?
What are the levers of value creation in E&P?
Financing the different stages of the E&P lifecycle
Understanding the cost of capital
Real E&P Business scenarios – estimating shareholder value

Day 4
Measuring and Managing Business Performance
Measures of financial performance and strength
Return on investment (ROI) and investment appraisal
How profit margin and net asset turnover drive return on net assets
Understanding competitive advantage: cost and differentiation advantage
Key Performance Indicators in the Oil and Gas Sector
Real E&P Business scenarios – modelling the economic and accounting consequences of
business decisions
Managing Cash and Working Capital
Components of working capital
The cash collection cycle
Analysing the effects on corporate value of working capital operating decisions
Real E&P Business scenarios – examine how decisions that affect working capital impact upon
corporate value

Day 5
The Economics of E&P Contractual Arrangements
Contrasting contractual arrangements in tax and royalty regimes vs. production sharing contracts
Economics of tax and royalty regimes and their impact on financial results
Economics of production sharing contracts
Comparing and contrasting the impact of PSCs and Tax & Royalty regimes upon reserves and
value
Real E&P Business scenarios – the financial consequences of contractual arrangements of E&P
businesses
Comprehensive review
Real E&P Business scenarios – developing financial statements for an E&P business through its
lifecycle

This course is designed to assist non-financial managers and personnel in the industry in enhancing
their understanding and implementation of best practices in financial management and accounting
in E&P. It covers fundamental financial principles relevant to exploration, development, and
production activities. The course further investigates how business decisions affect financial
statements and overall financial performance, thereby enabling managers to evaluate their options
more accurately. Moreover, it examines the financial implications of contractual arrangements in
the industry, with particular focus on how Production Sharing Agreements affect outcomes and
reserves.

Training learning Outcomes

By the conclusion of this course, participants will be able to:
• Describe the core financial competencies required by non-financial managers in E&P businesses.
• Use the basic concepts and terminology for accounting and finance in the oil and gas sector.
• Examine the different financial statements and their roles including profit statement, balance
sheet and cashflow.
• Establish how financial and accounting decisions affect earnings, cash flows and operational
decisions.
• Apply accepted capitalisation rules and depreciation methods within E&P
• Analyse and interpret the results of E&P businesses including the use of accepted oil and gas
reserves-based ratios.
• Identify the drivers of corporate value in E&P
• Appraise strategies for enhancing corporate value including capital investment decisions, cost of
capital, profitability and working capital management.
•Analyse the financial implications of contractual arrangements, such as production-sharing
agreements.

This course is for operational and project managers including engineers and geologists wishing to broaden and deepen their knowledge and application of financial management and accounting
practices. It will also be of use to staff in finance roles who wish to refresh their understanding
of petroleum accounting concepts and issues.