This GLOMACS Upstream Petroleum Contracts, Accounting & Auditing Policies and Procedures training course provides in-depth information on the types of upstream petroleum contracts and what their differences are and what are the main contractual terms participants need to know in order to fully understand all types of Upstream Petroleum Contracts. This Contracts Management training course will comprehensively cover Production Sharing Contracts, Exploration & Production Agreement (E&P) Exploration & Exploitation Contract, License Agreement, and participants will take away essentials elements of these contracts to be effectively used in their own companies. The training course will help participants understand the practical issues involved and the pitfalls to avoid.
This training course on Upstream Petroleum Contracts, Accounting & Auditing Policies and Procedures will also develop the essential skills necessary to prepare and evaluate Upstream Petroleum Accounts and to improve the organization’s internal audit function. It focuses on the latest techniques to evaluate Financial; Operational & Social Performance as well as relevant International Financial Reporting Standards (IFRS) relevant for the preparation of accounts. Delegates will therefore be able to prepare financial statements in line with IFRS and make strategic decisions to improve financial performance of their organization. In addition, the development, monitoring and continued improvement of a highly-integrated, internal audit function will aid continued financial success, stability and growth.
This training course will highlight:
The fundamental types of Upstream Petroleum Contracts
The advantages and disadvantages of the different types of Upstream Petroleum Contracts and how it is suitable for specific types of projects
Concessions, Production sharing & Risk Service Contract, important details and suitability for any oil and gas upstream project
The role of JOA in upstream petroleum contracting Conciliation, Mediation and Settlement of Disputes
Understanding the essentials terms of Unitization and Farm-in, Farm-Out agreements
How to Prepare Financial Statements in line with IFRS?
The latest international tools and techniques to develop skills of evaluation and performance measurement
The lessons to be learnt from an evaluation of leading international Upstream Petroleum companies
The different types of audit and the benefits to be obtained from each
Efficient Planning, Controlling and Recording of an audit assignment
Each module is structured and can be taken as a stand-alone training course; however, delegates will maximise their benefits by taking Module 1 and 2 back-to-back as a 2-week training course.
Objectives
At the end of this training course, you will learn to:
Gain a full understanding of the different types of the Upstream Petroleum Contracts
Understand the main contractual terms and their differences between the various types of contracts from PSA, Service contracts and others
Be aware of the approaches to negotiation of these contracts
Incorporate the best terms into these Upstream Petroleum Contracts
Develop an understanding of the accounting and auditing standards, policies and practices used by Upstream Petroleum companies
Improve relevance and reliability of financial reports to better meet the needs of users
Review and use publicly available information for benchmarking the business performance
Understand the role and function of an Internal Audit Department
Understand audit risk and efficiently plan, control and record an audit assignment
Training Methodology
Participants will gain greater understanding of the subject matter through presentations by experienced international practitioner designed to both inform and broaden the perspectives of the participants. The training methodology includes case studies from the Upstream Petroleum Sector, discussion, group work and interactive exercises and videos. These are designed to ensure delegates leave with transferable skills as well as up-to-date knowledge.
Organisational Impact
Negotiating Upstream Petroleum Contracts and managing the accounting & auditing policies and procedures with ease will ensure your organization will benefit by:
Enhancing your company’s ability to negotiate upstream contracts beneficial to the corporation in the short and long term bearing in mind future changes in the industry
Improving expertise and skill sets of personnel dealing with accounting and audit policies and procedures
Understanding the risk factors in these types of contracts and learning how to mitigate them
Enhancing internal capacity to auditing critical areas
Better managing claims and disputes by avoiding confrontational approaches
Enhancing contract personnel’s negotiation skills and confidence
More effective finance support for front-line departments
Greater relevance and reliability of financial and management information
More strategic thinking and focus on performance
More effective use of financial statements of the company, its co-venturers and its competitors
The ability of Finance Managers and staff to work with less supervision
Preparation of staff for increased responsibility
Personal Impact
This training course will be of personal benefit to delegates by providing you with:
In-depth knowledge gained about Upstream contracts and various interpretations to essential clauses of the contract
Managing and mitigating risks associated with Upstream contracts with better accounting and auditing policies and procedures
Ensuring smooth contract administration of Upstream contracts
Appreciating critical issues involved with auditing procedures
Enhancing your ability to negotiate and manage disputes
A better understanding of the context and importance of the work you do
Greater awareness of industry practices, problems and solutions
Increased understanding and assurance to complete tasks successfully
Increased self-confidence and motivation at work
Greater job satisfaction in providing quality support to management
Greater ability to supervise, develop and motivate colleagues
Who Should Attend?
This GLOMACS training course is appropriate to a wide range of professionals but will greatly benefit:
Finance Staff in General Accounting, Payables, Receivables, Inventory, Fixed Assets, etc.
Joint Venture Accountants and Auditors
External, Financial and Internal Auditors
Government Regulators and Auditors
Financial and Investment Analysts
Course Outline
Module I: Upstream Petroleum Contracts
DAY 1
Introduction and Overview of Upstream Petroleum Contracts
Brief Overview of the O&G Industry
Oil and Gas Terminology
The Legal Framework to Upstream Contracts
Introduction to Contract Formation
Key Oil and Gas Terminology
Oil and Gas Industry Structure
Relationship between Different Players in the Oil and Gas Industry
Phases of the Oil and Gas Industry
Oil and Gas Contract Fundamentals and Legal Principles
Territorial Water, Continental Shelf and United Nations Convention on the Law of the Sea (UNCLOS)
DAY 2
Contracting in The Upstream Sector: Ownership and Licensing
Ownership and Exploitation of Reserves
The ABCs of Petroleum Contracts: License-Concession Agreements, Joint Ventures, and Production-sharing Agreements
Characteristics of Upstream Contracts
Commercial Realities of the Oil and Gas Business
Agreement with Resource Holders
Ownership of Oil and Gas
Risk Service Contracts (RSCs)
Grant of Rights by Resource Holder
Host Country's Legal and Regulatory Framework and Fiscal Regime: Stabilization
Role of Host Government
Key Issues in International Oil and Gas Contracts
Negotiation Framework and Strategy: Objectives of Host Countries / NOCs and IOCs
Host Government‘s Role in Upstream (Exploration & Production (E&P)) Agreements
Overview of Upstream Operations and E&P Agreements (types and trends by region)
Key Differences between Production Sharing Contracts (PSCs), Concessions, Service Contracts and JV Contracts
Role of Host Government in Upstream Contracts
DAY 3
Production Sharing Contracts (PSC) & Joint Operating Agreements (JOA)
Commercial Terms in Licensing and Concession Agreements
Fiscal Arrangements, License Fees
Four Key Financial Aspects to a PSC
(a) Royalty - The R factor
(b) Cost Oil
(c) Profit Oil
(d) Taxation
(e) Bonuses and Penalties
PSC – Cash Flow Distribution
PSC – CF Distribution Example – Year N+1
Comparison of Fiscal Systems
Joint Operating Agreements (JOAs)
What is a Joint Operating Agreement (JOA)?
Nature, Aim and Functions of a Joint Venture
Government Approval
Key Areas of the JOA
Purpose and Scope: Participating Interests
DAY 4
Service Contracts, Farm-In and Farm-Out and Unitization - Risk bearing and Non- Risk Bearing Service Contracts
Participation Agreements (Farm-in and Farm-out)
Agreements for Farm-ins and Farm-outs
Nature of the Farm-out
Subject Matter of the Farm-out
Interest Assigned and Reserved
Assignment of Interest
Unitization and Unit Operating Agreements (UUOAs)
What is unitization?
Unitization in Practice
Government Approval
Transboundary Unitization
DAY 5
Negotiating Production Sharing Contracts
Government Take
Production Share and Cost Recovery
Local Content
Force Majeure
Dispute Resolution
Stabilization and Renegotiation Provisions
Negotiation Simulation Exercise
Negotiation a PSA with a Government Entity
Objective: The objective is to establish what can be achieved in the meeting, what preparation is needed for it and what strategy should be adopted and then to pursue this strategy
Feedback Session
Negotiation of Oil and Gas Disputes
Importance of Negotiation in Oil and Gas Business
Disadvantages of Competitive or Positional Negotiation
Principled Negotiation between the Parties to Achieve Best Results
Module II: Upstream Petroleum Accounting & Auditing Policies and Procedures
DAY 6
Major Accounting & Auditing Issues in the Upstream Petroleum Sector
The Latest Accounting & Auditing Issues Facing the Sector
The Impact of Commodity Prices, Currency & Interest Rate Fluctuations and Political and Environmental Developments
The Impact of Financial and Accounting Issues on Strategic Development and Growth within the Sector
The Annual Reports & Financial Statements of Leading International Petroleum Companies
An Overview of IFRS in relation to Upstream Oil & Gas Accounting
The Role of Auditing
DAY 7
Accounting for Revenue & Costs in the Upstream Petroleum Sector
Revenue Recognition & IFRS 15: Revenue from Contracts with Customers
Costs in Acquisition, Exploration, Development and Production
IFRS 6: Exploration for and Evaluation of Mineral Assets
Accounting Approaches - The "Successful Efforts" (SE) Method or the "Full Cost" (FC) Method
Break Even Oil, Cost Oil & Profit Oil
Evaluating Profitability of Leading International Oil & Gas Companies
DAY 8
Accounting for Assets in the Upstream Petroleum Sector
Reserves & Resources
IAS 16: Property, Plant and Equipment
Depletion, Depreciation & Amortisation (DD&A)
IAS 36: Impairment of Assets
IAS 37 – 39 : Provisions, Contingent Liabilities and Contingent Assets; Intangible Assets and Financial Instruments
Evaluating the Assets & Reserves of Leading International Petroleum Companies
External Auditing - Reporting to Investors in the Oil & Gas Industry
Internal Auditing - Defining and Developing the Internal Audit Process
DAY 10
The Internal Audit Function
Establishing the Roles & Staff within the Internal Audit Department
The Various Types of Audits
Planning & Commencing Internal Audit Examinations
Controls & Substantive Tests
Communicating Audit Findings
The Audit Exit Conference Meeting & Post-Audit Reviews
Certificates
On 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 Sponsor, one CPE credit is granted per 50 minutes of attendance
Providers and Associations
Endorsed Education Provider
GLOMACS is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.NASBARegistry.org
In Association With
Oxford Management Centre
A GLOMACS - Oxford Management Centre collaboration aimed at providing the best training services and benefits to our valued clients.
Upstream Petroleum Contracts Accounting & Auditing Policies and Procedures
An In-depth Guide for Oil and Gas Professionals
Upcoming Dates
Code
Date
Venue
Fees
CM022
09 - 20 Oct 2023
Lisbon - Portugal
$11,900
CM022
20 Nov - 01 Dec 2023
Dubai - UAE
$11,900
CM022
01 - 12 Jan 2024
Dubai - UAE
$11,900
CM022
26 Feb - 08 Mar 2024
London - UK
$11,900
CM022
29 Apr - 10 May 2024
Dubai - UAE
$11,900
CM022
13 - 24 May 2024
Kigali - Rwanda
$11,900
CM022
10 - 21 Jun 2024
Istanbul - Turkey
$11,900
CM022
29 Jul - 09 Aug 2024
London - UK
$11,900
CM022
19 - 30 Aug 2024
Dubai - UAE
$11,900
CM022
07 - 18 Oct 2024
Lisbon - Portugal
$11,900
CM022
18 - 29 Nov 2024
Dubai - UAE
$11,900
Introduction
This GLOMACS Upstream Petroleum Contracts, Accounting & Auditing Policies and Procedures training course provides in-depth information on the types of upstream petroleum contracts and what their differences are and what are the main contractual terms participants need to know in order to fully understand all types of Upstream Petroleum Contracts. This Contracts Management training course will comprehensively cover Production Sharing Contracts, Exploration & Production Agreement (E&P) Exploration & Exploitation Contract, License Agreement, and participants will take away essentials elements of these contracts to be effectively used in their own companies. The training course will help participants understand the practical issues involved and the pitfalls to avoid.
This training course on Upstream Petroleum Contracts, Accounting & Auditing Policies and Procedures will also develop the essential skills necessary to prepare and evaluate Upstream Petroleum Accounts and to improve the organization’s internal audit function. It focuses on the latest techniques to evaluate Financial; Operational & Social Performance as well as relevant International Financial Reporting Standards (IFRS) relevant for the preparation of accounts. Delegates will therefore be able to prepare financial statements in line with IFRS and make strategic decisions to improve financial performance of their organization. In addition, the development, monitoring and continued improvement of a highly-integrated, internal audit function will aid continued financial success, stability and growth.
This training course will highlight:
The fundamental types of Upstream Petroleum Contracts
The advantages and disadvantages of the different types of Upstream Petroleum Contracts and how it is suitable for specific types of projects
Concessions, Production sharing & Risk Service Contract, important details and suitability for any oil and gas upstream project
The role of JOA in upstream petroleum contracting Conciliation, Mediation and Settlement of Disputes
Understanding the essentials terms of Unitization and Farm-in, Farm-Out agreements
How to Prepare Financial Statements in line with IFRS?
The latest international tools and techniques to develop skills of evaluation and performance measurement
The lessons to be learnt from an evaluation of leading international Upstream Petroleum companies
The different types of audit and the benefits to be obtained from each
Efficient Planning, Controlling and Recording of an audit assignment
Each module is structured and can be taken as a stand-alone training course; however, delegates will maximise their benefits by taking Module 1 and 2 back-to-back as a two-week training course.
Objectives
At the end of this training course, you will learn to:
Gain a full understanding of the different types of the Upstream Petroleum Contracts
Understand the main contractual terms and their differences between the various types of contracts from PSA, Service contracts and others
Be aware of the approaches to negotiation of these contracts
Incorporate the best terms into these Upstream Petroleum Contracts
Develop an understanding of the accounting and auditing standards, policies and practices used by Upstream Petroleum companies
Improve relevance and reliability of financial reports to better meet the needs of users
Review and use publicly available information for benchmarking the business performance
Understand the role and function of an Internal Audit Department
Understand audit risk and efficiently plan, control and record an audit assignment
Training Methodology
Participants will gain greater understanding of the subject matter through presentations by experienced international practitioner designed to both inform and broaden the perspectives of the participants. The training methodology includes case studies from the Upstream Petroleum Sector, discussion, group work and interactive exercises and videos. These are designed to ensure delegates leave with transferable skills as well as up-to-date knowledge.
Organisational Impact
Negotiating Upstream Petroleum Contracts and managing the accounting & auditing policies and procedures with ease will ensure your organization will benefit by:
Enhancing your company’s ability to negotiate upstream contracts beneficial to the corporation in the short and long term bearing in mind future changes in the industry
Improving expertise and skill sets of personnel dealing with accounting and audit policies and procedures
Understanding the risk factors in these types of contracts and learning how to mitigate them
Enhancing internal capacity to auditing critical areas
Better managing claims and disputes by avoiding confrontational approaches
Enhancing contract personnel’s negotiation skills and confidence
More effective finance support for front-line departments
Greater relevance and reliability of financial and management information
More strategic thinking and focus on performance
More effective use of financial statements of the company, its co-venturers and its competitors
The ability of Finance Managers and staff to work with less supervision
Preparation of staff for increased responsibility
Personal Impact
This training course will be of personal benefit to delegates by providing you with:
In-depth knowledge gained about Upstream contracts and various interpretations to essential clauses of the contract
Managing and mitigating risks associated with Upstream contracts with better accounting and auditing policies and procedures
Ensuring smooth contract administration of Upstream contracts
Appreciating critical issues involved with auditing procedures
Enhancing your ability to negotiate and manage disputes
A better understanding of the context and importance of the work you do
Greater awareness of industry practices, problems and solutions
Increased understanding and assurance to complete tasks successfully
Increased self-confidence and motivation at work
Greater job satisfaction in providing quality support to management
Greater ability to supervise, develop and motivate colleagues
Who Should Attend?
This GLOMACS training course is appropriate to a wide range of professionals but will greatly benefit:
Finance Staff in General Accounting, Payables, Receivables, Inventory, Fixed Assets, etc.
Joint Venture Accountants and Auditors
External, Financial and Internal Auditors
Government Regulators and Auditors
Financial and Investment Analysts
SEMINAR OUTLINE
Module I: Upstream Petroleum Contracts
DAY 1
Introduction and Overview of Upstream Petroleum Contracts
Brief Overview of the O&G Industry
Oil and Gas Terminology
The Legal Framework to Upstream Contracts
Introduction to Contract Formation
Key Oil and Gas Terminology
Oil and Gas Industry Structure
Relationship between Different Players in the Oil and Gas Industry
Phases of the Oil and Gas Industry
Oil and Gas Contract Fundamentals and Legal Principles
Territorial Water, Continental Shelf and United Nations Convention on the Law of the Sea (UNCLOS)
DAY 2
Contracting in The Upstream Sector: Ownership and Licensing
Ownership and Exploitation of Reserves
The ABCs of Petroleum Contracts: License-Concession Agreements, Joint Ventures, and Production-sharing Agreements
Characteristics of Upstream Contracts
Commercial Realities of the Oil and Gas Business
Agreement with Resource Holders
Ownership of Oil and Gas
Risk Service Contracts (RSCs)
Grant of Rights by Resource Holder
Host Country's Legal and Regulatory Framework and Fiscal Regime: Stabilization
Role of Host Government
Key Issues in International Oil and Gas Contracts
Negotiation Framework and Strategy: Objectives of Host Countries / NOCs and IOCs
Host Government‘s Role in Upstream (Exploration & Production (E&P)) Agreements
Overview of Upstream Operations and E&P Agreements (types and trends by region)
Key Differences between Production Sharing Contracts (PSCs), Concessions, Service Contracts and JV Contracts
Role of Host Government in Upstream Contracts
DAY 3
Production Sharing Contracts (PSC) & Joint Operating Agreements (JOA)
Commercial Terms in Licensing and Concession Agreements
Fiscal Arrangements, License Fees
Four Key Financial Aspects to a PSC
(a) Royalty - The R factor
(b) Cost Oil
(c) Profit Oil
(d) Taxation
(e) Bonuses and Penalties
PSC – Cash Flow Distribution
PSC – CF Distribution Example – Year N+1
Comparison of Fiscal Systems
Joint Operating Agreements (JOAs)
What is a Joint Operating Agreement (JOA)?
Nature, Aim and Functions of a Joint Venture
Government Approval
Key Areas of the JOA
Purpose and Scope: Participating Interests
DAY 4
Service Contracts, Farm-In and Farm-Out and Unitization - Risk bearing and Non- Risk Bearing Service Contracts
Participation Agreements (Farm-in and Farm-out)
Agreements for Farm-ins and Farm-outs
Nature of the Farm-out
Subject Matter of the Farm-out
Interest Assigned and Reserved
Assignment of Interest
Unitization and Unit Operating Agreements (UUOAs)
What is unitization?
Unitization in Practice
Government Approval
Transboundary Unitization
DAY 5
Negotiating Production Sharing Contracts
Government Take
Production Share and Cost Recovery
Local Content
Force Majeure
Dispute Resolution
Stabilization and Renegotiation Provisions
Negotiation Simulation Exercise
Negotiation a PSA with a Government Entity
Objective: The objective is to establish what can be achieved in the meeting, what preparation is needed for it and what strategy should be adopted and then to pursue this strategy
Feedback Session
Negotiation of Oil and Gas Disputes
Importance of Negotiation in Oil and Gas Business
Disadvantages of Competitive or Positional Negotiation
Principled Negotiation between the Parties to Achieve Best Results
Module II: Upstream Petroleum Accounting & Auditing Policies and Procedures
DAY 6
Major Accounting & Auditing Issues in the Upstream Petroleum Sector
The Latest Accounting & Auditing Issues Facing the Sector
The Impact of Commodity Prices, Currency & Interest Rate Fluctuations and Political and Environmental Developments
The Impact of Financial and Accounting Issues on Strategic Development and Growth within the Sector
The Annual Reports & Financial Statements of Leading International Petroleum Companies
An Overview of IFRS in relation to Upstream Oil & Gas Accounting
The Role of Auditing
DAY 7
Accounting for Revenue & Costs in the Upstream Petroleum Sector
Revenue Recognition & IFRS 15: Revenue from Contracts with Customers
Costs in Acquisition, Exploration, Development and Production
IFRS 6: Exploration for and Evaluation of Mineral Assets
Accounting Approaches - The "Successful Efforts" (SE) Method or the "Full Cost" (FC) Method
Break Even Oil, Cost Oil & Profit Oil
Evaluating Profitability of Leading International Oil & Gas Companies
DAY 8
Accounting for Assets in the Upstream Petroleum Sector
Reserves & Resources
IAS 16: Property, Plant and Equipment
Depletion, Depreciation & Amortisation (DD&A)
IAS 36: Impairment of Assets
IAS 37 – 39 : Provisions, Contingent Liabilities and Contingent Assets; Intangible Assets and Financial Instruments
Evaluating the Assets & Reserves of Leading International Petroleum Companies
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