Introduction
This training course equips finance, accounting and audit professionals with the technical skills to prepare, evaluate and audit the accounts of upstream oil and gas and petrochemical companies, and with the financial management tools used to run them. The two businesses share a value chain but face very different accounting problems. Upstream accounting centres on exploration costs, reserves, production sharing and decommissioning, while petrochemical accounting centres on feedstock pricing, joint product costing, inventory valuation and plant turnarounds. Delegates need fluency in both, together with the financial analysis, costing, budgeting and investment appraisal skills that increasingly define senior finance roles in the sector.
Delegates will learn to apply IFRS to upstream and petrochemical transactions, allocate joint costs, value inventory in volatile markets and account for joint arrangements. They will interpret financial statements under the new IFRS 18 presentation requirements, build budgets and variance analyses, evaluate financing structures and appraise major capital projects. The training course closes with governance, internal control and risk-based internal audit, producing professionals who safeguard financial integrity while driving stronger investment and performance decisions across the value chain.
This training course will highlight:
- How to apply IFRS to upstream and petrochemical transactions
- Petrochemical costing, joint product allocation and inventory valuation
- Financial statement analysis, budgeting and performance measurement
- Cost of capital, financing and investment appraisal techniques
- The role, planning and execution of risk-based internal audit
Objectives
At the end of this training course, you will learn to:
- Apply IFRS to upstream and petrochemical transactions
- Allocate joint costs and value petrochemical inventory
- Analyse financial statements and sector performance measures
- Evaluate capital investments and financing decisions
- Plan risk-based internal audits across the sector
Training Methodology
This training course combines expert presentations with case studies drawn from leading international upstream oil and gas and petrochemical companies. Delegates take part in group work, discussions and worked exercises covering accounting, costing, auditing and financial management. Video presentations and practical examples reinforce technical concepts throughout. Daily one-to-one sessions with the course instructor deepen understanding of complex material. Delegates receive comprehensive course notes and worked examples in hard and soft copy.
Organisational Impact
The Organisation will have the following benefits:
- More reliable IFRS reporting across upstream and petrochemical operations
- More accurate product costing and inventory valuation
- Stronger investment appraisal and capital allocation decisions
- Better use of competitor and company financial statements
- More effective internal control and risk-based audit coverage
- Finance staff better prepared for increased responsibility
Personal Impact
At the end of this training course, the participants will gain the following:
- Deeper understanding of upstream and petrochemical economics
- Greater awareness of industry accounting practices and solutions
- Increased confidence applying IFRS to complex transactions
- Stronger analytical, costing and appraisal skills
- Greater ability to support management decision-making
- Greater ability to supervise and motivate colleagues
Who should Attend?
This training course is designed for finance, accounting and audit professionals working across the upstream oil and gas, refining and petrochemical sectors. It suits those who need both accounting and auditing expertise and financial management skills.
This training course is therefore suitable for a wide range of professionals but will greatly benefit:
- Corporate Accountants, Financial Controllers and Management Accountants
- Plant Cost Accountants and Product Controllers in Refining and Petrochemicals
- Joint Venture Accountants, Treasury and Asset Accounting Staff
- Internal, External and Government Regulatory Auditors
- Financial and Investment Analysts
The Petroleum and Petrochemical Value Chain: Financial and Reporting Context
- The Upstream, Midstream, Refining and Petrochemical Value Chain
- Petrochemical Business Models: Feedstocks, Crackers, Derivatives and Integration
- Resources and Reserves Classification and Reporting
- Impact of Commodity Prices, Currency and Interest Rates on the Sector
- Feedstock-to-Product Spreads and Margin Economics
- IFRS Framework for Oil, Gas and Petrochemical Companies
- Joint Ventures and Integrated Complexes: IFRS 10, 11 and 12
- The Role of External and Internal Audit in the Sector
Upstream Accounting under IFRS
- Costs in Acquisition, Exploration, Development and Production
- IFRS 6 and Successful Efforts vs Full Cost Method
- Production Sharing Contracts: Cost Oil, Profit Oil and Break Even Oil
- Depletion, Depreciation and Amortisation under IAS 16
- Revenue Recognition under IFRS 15: Liftings, Overlift and Underlift
- Joint Operating Agreements, Joint Interest Billing and Cash Calls
- Decommissioning Provisions under IAS 37
- Impairment of Upstream Assets under IAS 36
Petrochemical Accounting and Costing
- Process Costing in Continuous Petrochemical Operations
- Joint Products and By-Products: Cost Allocation at the Split-off Point
- Inventory Valuation under IAS 2: Feedstock, Linefill, Catalysts and NRV
- Turnarounds and Major Inspections as IAS 16 Components
- IFRS 15 in Petrochemicals: Formula Pricing, Rebates, Tolling and Offtake
- Feedstock Supply Agreements, Related Party and Transfer Pricing
- Commodity Price Hedging under IFRS 9
- Impairment of Petrochemical Assets through the Capacity Cycle
Financial Analysis, Costing and Budgeting
- Analysing Financial Statements, Including IFRS 18 Presentation Changes
- Ratio Analysis, DuPont Analysis and Their Limitations
- Performance Measures across Upstream and Petrochemical Businesses
- Budgeting and Activity-Based Budgeting in Capital-Intensive Operations
- Standard Costing: Yield, Mix and Price Variances
- Sell or Process Further, Product Mix and Shut-Down Decisions
- Working Capital and Cash Management in Volatile Commodity Markets
Investment Decisions, Governance and Audit
- Cost of Capital, WACC and Financing Structure
- Investment Appraisal and Capital Rationing for Major Projects
- Creative Accounting, Corporate Governance and the Role of the Board
- Internal Control, COSO and the Three Lines Model
- Risk-Based Internal Audit under the IIA Global Internal Audit Standards
- Auditing Sector Risk Areas: Reserves, Liftings, JV Billing and Bulk Inventory
- Planning, Reporting and Following Up Audit Assignments
- Sustainability Reporting and Assurance: IFRS S1 and S2
- Upon successful completion of this training course, GLOMACS Certificate will be awarded to the delegates. Continuing Professional Education credits (CPE): In accordance with the standards of the National Registry of CPE Sponsors, one CPE credit is granted per 50 minutes of attendance
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