Financial and Accounting Management for Oil and Gas Industry

Introduction

The global oil and gas industry is one of industry that the most high asset and spending due to nature of its investment and operations conditions. Like many other business, oil and gas business needs to examine its financial report as well as being able to count the company spending and asset. In addition to that oil and gas industry needs to compete by providing the competitive price, therefore costing and its behavior are very important to support operations in oil and gas business.

This training covers the explanation & understanding of sources of financial information, underlying concepts and frameworks, critique of published accounts, international divergences, use of software packages, ratio analysis, cost behaviour, cost drivers and cost prediction techniques, cost volume profit analysis, pricing decisions, transfer pricing and responsibility centres.

Aims

To provide participants with the conceptual understanding, skills and analytical techniques to take effective decisions to enhance financial value.

Outcome

On completion of this training, participants are expected to be able to:

• recognize and appraise the relevance of the information presented in a company's Annual Report.
• create and interpret relevant financial information in support of an operational decision.

Topic Contents

Day 1

• General Opening
• Topic 1
  Introduction to Concept of Financial and Management Accounting
  • Financial Accounting
  • Management Accounting
  • Global Oil and Gas Companies Annual Report
• Topic 2
  Regulatory Environment in Oil and Gas Company
  • Corporate Environment
  • Corporate Governance
  • Governance in different setting
  • Sustainability Reporting
  • Reporting & Assurance
  • Review one of major oil & gas company reporting
• Topic 3
  The Financial Statements of Oil and Gas Company, reviewing upstream & downstream annual report
  • Balance Sheet
  • Income Statement
  • Cash flow statement
  • Comparing Upstream & Downstream Oil & Gas financial statement
• Topic 4
  Explanation of Ratio Analysis
  • Overview
  • Calculation
  • Trend Analysis
• Topic 5
  Interpretation and comparison of Ratio Analysis
  • Profitability
  • Efficiency
  • Liquidity
  • Financial Gearing
  • Investment

Day 2

• Topic 6
  Reviewing Oil and Gas Company Financial Highlight
  • Financial Report 2013
  • Financial Report 2014
  • Financial Report 2015
• Topic 7
  Introduction to Management Accounting and Costs
  • Role of the management accountant in decision making.
  • costs, the classification of costs and the use of costs in decision making.
  • the notion of contribution.
• Topic 8
  Short Term Decision Making & Costing Methods
  • relationship between costs, volume of activity and profit
  • understanding of break-even point, margin of safety and contribution
  • different ways of costing products and services
• Topic 9
  Reviewing Oil and Gas Pricing decisions.
  • The price of crude oil
  • Crude Oil Benchmarking and pricing
  • LNG Pricing
  • LNG breakeven

Day 3

• Topic 10
  Pricing Decisions and Transfer Pricing
  • How Oil & Gas corporations set arrive at the prices at which they sell their products or services.
  • the issues and how costs affect their pricing decisions.
  • internal transfer pricing within corporations.
• Question and Answer
• Summary

Training Duration: 3 Days

Participants:

- Employees with or without Accounting background who working in Oil & Gas Industry, Energy sector that interest in Oil and Gas Accounting
- Decision Maker or Executives Management who would like to revisit the Oil & Gas Finance & Management Accounting.
- Other participants working in or related to Oil & Gas Industry.

Course Leader :

Samidi Syabudin, BSc Eng., MBA, PMP, MCCM

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