An Intensive 10-Day Training Course

The 10-Day Training Course on International Financial Reporting & Treasury Risk Management for the Oil & Gas Industry

Essential guide to IFRS and Risk Management

Scheduled Dates

28 Aug - 08 Sep 2023

London - UK

$11,900

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Why Choose this Training Course?

This PetroKnowledge Finance and Treasury Management training course will provide delegates with the essential knowledge and skills to manage the Treasury effectively thereby improving liquidity, investment returns and international cashflow as well as risk management. This highly-interactive training course will also develop an improved understanding of International Financial Reporting enabling reports to be written in accordance with IFRS and evaluated to improve decision making.

The Treasury & Risk Management function and Financial Reporting are essential to the success and sustainability of all leading corporate organisations. Never has this been more true, given the ever increasing pace of change in regulation, compliance, technology and financial risk within the Oil & Gas industry.

Treasury Management ensures sufficient liquidity to meet its obligations, whilst managing payments, receipts and financial risks such as Credit Risk, Oil Price, Exchange Rate and Interest Rate Risk effectively. In addition, effective Treasury & Risk management will enable companies to make informed and better strategic decisions, providing the analysis, finance and risk assessment.

Financial Reporting develops an essential understanding of Oil & Gas accounting, reporting and performance measurement issues and practices. It develops your ability to prepare, use and critically evaluate information, applying specialist industry knowledge and relevant analytical skills.

This training course will highlight:

The Role of Scope of Treasury & Risk Management
The latest international tools and techniques to enable you to identify; measure and manage risk effectively
Methods to ensure, liquidity, improved investment returns and smooth cash operations
Capital Investment Techniques and Methods of Finance to support Strategic Objectives
The features and Benefits of Derivatives as Risk Management tools
The main requirements of International Financial Reporting Standards (IFRS) relevant to the Oil & Gas industry
The Analysis & Evaluation of Financial Reports to improve decision making and performance.

The Structure

This PetroKnowledge training course is split into two modules:

MODULE I - Treasury and Risk Management

MODULE II - International Financial Reporting Standards (IFRS) for the Oil & Gas and Petrochemical Sectors (Upstream, Midstream & Downstream)

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.

What are the Goals?

By the end of this training course, participants will learn to:

Manage Cash; Liquidity & Working Capital to reduce finance costs and improve returns
Make informed Strategic Decisions
Determine and Implement the company’s Risk Management Strategy
Recommend Hedging and Risk Management Decisions
Improve the Corporate Governance of the organization
Apply International Financial Reporting Standards most relevant to the Oil & Gas industry
Analyse and evaluate financial reports to better meet the needs of users
Review and use publicly available information to benchmark the business performance of your company in the Oil & Gas industry

Who is this Training Course for?

Given the importance of the Treasury & Risk Management and and Financial Reporting & Analysis, this PetroKnowledge training course is suitable to a wide range of professionals but will greatly benefit:

Professionals who wish to up-date and improve their knowledge and skills of Treasury, Risk management and Finance
Financial decision makers, whose techniques of decision making and analysis will be improved through attendance
Managers and those with financial responsibilities
Professionals acting upon the financial decisions of others, who will gain an appreciation for decision making thereby ensuring shared values within the organisation
Professionals with an interest in finance and the latest market developments

How will this Training Course be Presented?

In order to ensure skill development as well as improved knowledge, the training course will be conducted along workshop principles using real life case studies and interactive worked examples from the Oil & Gas industry. Participants will be actively engaged, individually and as part of a group, in their discussion, analysis and evaluation throughout the course.

Participants will also be given a detailed set of handouts in hard and soft copy to enable them to review the topics covered at a later date.

Daily Agenda

Module 1 - Treasury and Risk Management

Day One: The Role of Treasury Management – An Overview

The Role & Scope of Treasury Management
Operation & Location of a Treasury Department – Cost or Profit Centre; Centralised or Decentralised
Cash & Liquidity Management
Working Capital Management
Capital/Finance Management
Risk Management

Day Two: Cash & Liquidity Management – A Detailed Analysis

Cash Forecasts: Role & Preparation
Investment of Cash Surpluses to Maximize Return
Meeting Cash Calls and Short-Term Cash Shortages/Short Term Finance
Working Capital Management – Determining the Optimum Level
Multi-national & Group Cash Management
Cash Budgets: Process & Control

Day Three: Financing and Capital Management

Strategic Objectives: Consolidation, Growth, M & A; Joint Ventures, Diversification etc
Financing Strategic Objectives/Long Term Finance (Public & Private Equity v Buyer & Supplier Debt)
Optimizing the Capital Structure to Minimize the Cost of Capital (WACC)
The Capital Asset Pricing Model (CAPM)
Capital Investment Appraisal – NPV; IRR, Payback
Capital Rationing: Internal & External

Day Four: Risk Management

Identifying Risks and Uncertainties – Internal & External; Financial & Non-Financial
Measuring Risk – Volatility; Variance; Standard Deviation; Probability; Value at Risk
Determining the Risk Management Strategy – assessing impact and probability
The 4 T’s – Tolerate; Terminate; Transfer; Treat
Internal Controls & Internal Auditing
Credit & Counterparty Risk Management

Day Five: Currency; Interest Rate & Commodity (Oil Price) Risk Management

Forward Contracts and Forward Rate Agreements
Options – Calls & Puts; European & American
Futures – Market Correlation; Margin Payments etc.
Swaps – Currency & Interest Rate Risk and Benefits
Foreign Currency Accounts other Internal Methods/Tactics
Foreign Currency Borrowing

Module 2 - International Financial Reporting Standards (IFRS) for the Oil & Gas Industry

Day Six: The Oil and Gas Sector & Major Accounting Issues

The Oil & Gas Sector & the Macro-economic Factors
- Commodity prices, currency fluctuations, interest rate risk and political developments and environmental risk.
Costs in Acquisition, Exploration, Development and Production of new oil or natural gas reserves
Accounting Approaches
- The "Successful Efforts" (SE) Method or the "Full Cost" (FC) Method
Introduction/Overview of IFRS in relation to the Oil & Gas Sector, with particular reference to:
- IFRS 1: First-time Adoption of International Financial Reporting Standards
- IFRS 6: Exploration for and Evaluation of Mineral Assets
- IFRS 10: Consolidated Financial Statements
- IFRS 11: Joint Arrangements
- IAS 16: Property, Plant and Equipment
- IAS 36: Impairment of Assets
- IAS 37: Provisions, Contingent Liabilities and Contingent Assets
- IAS 38: Intangible Assets
- IAS 39 Financial Instruments: Recognition and Measurement – Superseded by IFRS 9 – was to be effective 2013 but now 2018

Day Seven: Evaluating the Performance and Identifying the Accounting Issues

Analysis of financial statements
- Income Statements
- Statement of Financial Position (Balance Sheet)
- Cash flow Statements
Identification & Evaluation of their Accounting Policies
DuPont Analysis – Evaluating and Improving Return on Equity (ROE)
Evaluation of their Share Price and Investment Performance
Case Study: BP, Chevron, Shell and SABIC

Day Eight: Accounting for Upstream Activities with Reference to IFRS

Reserves and resources
Exploration and evaluation
Revenue recognition
Assets
Depletion, Depreciation & Amortisation (“DD&A”)
Impairment of development, production and downstream assets
Examples: BP, Chevron & Shell

Day Nine: Joint Arrangements, Financial Instruments and Derivatives

Business Combinations, Joint Ventures & Production Sharing Agreements (“PSA”s)
Treasury Management Issues for Multi-nationals
The Use of Derivatives in the Oil& Gas Sector to manage the commodity, currency and interest-rate risks etc.
British Airways Case Study – Hedging the Oil Price using Futures

Day Ten: Creative Accounting and Corporate Governance

Creative Accounting – Enron and investor protection
Leases – IFRS 16 (new standard)
Auditors and reporting to investors in the oil and gas industry
External audit investigations and reports
- The Auditor’s ‘Opinion'
- True and Fair
- Sarbanes Oxley
- Internal audits
Ethical issues
Corporate governance
- Government regulation
- Investor confidence and share prices