Course Objectives

Evaluate the Major Issues facing the Oil and Gas and Petrochemical sector

Prepare Financial Statements in accordance with International Financial Reporting Standards (IFRS)

Evaluate the Financial and Operational Performance of international Oil & Gas and Petrochemical companies

Evaluate the importance and contribution of Oil and Gas and Petrochemicals to the National Governments and the Fiscal Budget

Recommend Strategic Plans to Improve Performance

Course Outline

• The Oil and Gas and Petrochemical Sectors – Identifying the Issues affecting Accounting and Performance Measurement

• Latest Events in the Oil & Gas and Petrochemical sectors - price volatility and supply & demand changes
• Managing the macro-economic factors, e.g. interest rates, exchange rates, oil prices
• Resources and Reserves
• Strategic Choices currently facing the Sector
• Capital Investment Issues
• Performance across the Sector

Major Accounting Issues in the Oil & Gas Sector and Petrochemical

• Revenue Recognition
• Costs in Acquisition, Exploration, Development and Production of New Oil or Natural Gas Reserves
• The Crack Spread –issues facing Refineries and Petrochemical companies
• Break Even Oil, Cost Oil & Profit Oil
• IFRS in relation to the Oil & Gas Sector and Petrochemical Sector
• IFRS 6 Exploration and Evaluation of Mineral Assets

Accounting for Assets

• IAS 16: Property, Plant and Equipment
• Depletion, Depreciation and Amortisation (“DD&A”)
• IAS 36: Impairment of Assets
• IAS 37: Provisions, Contingent Liabilities and Contingent Assets
• IAS 38: Intangible Assets
• IAS 39 & IFRS 9 Financial Instruments: Recognition and Measurement

Measuring Financial Performance

• Cross Sectional & Time Series Analysis
• Financial Analysis: Income Statements and the Statement of Financial Position (Balance Sheet) Analysis
• Cash flow Analysis and its importance in the Oil & Gas sector
• DuPont Analysis – Evaluating and Improving Return On Equity (ROE)
• Evaluation of Share Price and Investment Performance
• Evaluating the Financial Performance of leading international companies in the sector

• Measuring Operational & National / Government Efficiency and Performance
  • Measuring Reserves – Life; Reserves per Well; Replacement Ratio etc. and the impact for Refineries and Petrochemical companies.
  • Finding; Development & Production Capability & Efficiency
  • Evaluating the Operational Performance of Leading International Companies in the Sectors
  • Earned Value Added Analysis of Projects
  • Evaluating the Fiscal Budgets of Oil & Gas Producing Countries
  • National / Government Measures of Efficiency & Performance