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Upstream Economics and Management

An Intensive 10-Day Training Course

Upstream Economics and Management

Risk and Uncertainty Assessment,
Valuations, Oil & Gas Accounting

Scheduled Dates

09 - 20 Sep 2024 London - UK $11,900
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Why Choose this Training Course?

The business of upstream oil & gas industry is a complex process that involves multidisciplinary participations. The process of upstream oil and gas costs several hundreds of millions of dollars to the companies. Because of the capital-intensive nature of upstream investments, every required process is challenged by its economic impact or benefits to the company and stakeholders. The techniques applied in upstream business and processes in their selection criteria are challenging and require considerations of economic environment.

This PetroKnowledge 10-day training course provides the delegates with insights related to the upstream oil & gas business including the assessment of risk and uncertainty and relevant accounting standards based on International Financial Reporting Standards (IFRS). The course will equip the delegates with necessary skills and knowledge of exploration and production projects and financing and investments. The delegates will learn modern techniques relevant when choosing the best alternative project from economic point of view and evaluating various investment opportunities.

This Upstream Economics and Management training course will highlight:

  • Application techniques/approach of the economics analysis in the Oil & Gas industry
  • Petroleum related project evaluation methods
  • Assessment of the uncertainties and risk of the project
  • Preparation of Financial Statements consistent with IFRS
  • Relevant skills of evaluation and performance measurement
  • Efficient Planning, Controlling, and Recording of an audit assignment

The Structure

This PetroKnowledge training course is split into two modules:

MODULE I - Petroleum Project Economics & Risk Analysis

MODULE II - Upstream Petroleum Accounting

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 Upstream Economics and Management training course, participants will be able to:

  •  Understand various economic terms used in the Oil & Gas industry
  • Develop economic models of various petroleum fiscal regimes
  • Evaluating and quantifying risks and uncertainties
  • Carrying out a comprehensive economic evaluation for petroleum related project including risk and sensitivity analysis.
  • Contribute to the decision-making process for any petroleum related project
  • 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, evaluate, and use publicly available information for benchmarking the business performance

Who is this Training Course for?

This Upstream Economics and Management training course is suitable to a wide range of professionals but will greatly benefit:

  • Oil & Gas Field Engineers
  • Oil & Gas Managers
  • Oil & Gas Auditors
  • Oil & Gas Planners
  • Financial Analysts
  • Project Management Professionals
  • Corporate Accountants, Financial Controllers, Treasury Officers, Management Accountants
  • Finance Staff in General Accounting, Payables, Receivables, Inventory, Fixed Assets, etc.
  • Joint Venture Accountants and Auditors
  • Government Regulators and Auditors

How will this Training Course be Presented?

This Upstream Economic and Management training course will be delivered using various proven learning and teaching techniques. The Training methodology includes the use of case studies, group work and interactive exercises and videos relevant to the training. The training is designed to ensure delegates leave with transferable skills as well as up-to-date knowledge of Upstream Economic and Management.

Organisational Impact

By sending delegates on this Upstream Economics and Management training course, your organization will benefit by:

  • Participants will learn about the application/implementation of economic valuation and risk assessment processes in the global Oil & Gas industry
  • Identify and analyze the risk involved in a petroleum related project
  • Recognize the uses of options in the ranking criteria to select and execute the high profitable projects
  • Insights of the influencing parameters for oil and gas field developments
  • Providing effective finance support for front-line departments
  • Relevance and reliability of management and financial information
  • Effective use of financial statements of the company

Personal Impact

By attending this Upstream Economics and Management training course, you will:

  • Learn to construct a project cashflow model
  • Gain the operational decision-making techniques under risks and uncertainties
  • Identifying the uncertainties in petroleum related project and how to manage them effectively
  • Awareness and ins-sight about influential parameters in an oil and gas field development plan
  • Greater insight or awareness of industry practices, problems, and solutions
  • Increased self-confidence and motivation at work
  • Greater job satisfaction in providing quality and excellent support to management

Daily Agenda

MODULE I - Petroleum Project Economics & Risk Analysis

Day One: Cashflow Analysis

  • Familiarization with Economic terms
  • Setting up Cashflow Calculation
  • Depreciation Methods
  • Loss Carry Forwards
  • Inflation
  • Nominal & Real Cashflow
  • Sunk Costs
  • Project Financing

Day Two: Economic Indicators

  • Economic Indicators Definitions
  • Present Value Concept
  • Discount Factor
  • Net Present Value
  • Internal Rate of Return
  • Effect of Project Delay
  • Payback Period
  • Profit / Investment Ratio
  • Incremental Projects

Day Three: Risks and Uncertainties

  • Risk & Uncertainty
  • Expected Value Concept
  • Decision Tree Analysis
  • Farm-out Decision
  • Probability Analysis
  • Sensitivity Analysis
  • Probability Distribution
  • Monte Carlo Simulation

Day Four: Setting up Spreadsheet Calculation

  • Introduction to Spreadsheet Calculation
  • Simple Cashflow using Excel
  • NPV Calculations
  • Application of Economic Indicators
  • Class Discussion

Day Five: Setting up Oil Field Development Model

  • Setting up an Integrated Economic Model of a Typical Oil Field Development
  • Project Sensitivity Analysis for the Selected Model
  • Introduction to Russell Field Model
  • Final Remarks

 

MODULE II - Upstream Petroleum Accounting

Day Six: 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 Seven: 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 Eight: 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

Day Nine: Creative Accounting, Corporate Governance & Auditing

  • Creative Accounting
  • Corporate Governance
  • Published Financial Statements
  • The Role of the Board & Audit Committee
  • External Auditing - Reporting to investors in the Oil & Gas industry
  • Internal Auditing - Defining and Developing the Internal Audit Process

Day Ten: 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

Certificate

  • On successful completion of this training course, a PetroKnowledge Certificate will be awarded to the delegates

In Association With

GLOMACS Training

Our collaboration with GLOMACS aims to provide the best training services and benefits for our valued clients

Visit Website ›

Oxford Management Centre

Our collaboration with Oxford Management Centre aims to provide the best training services and benefits for our valued clients.

Visit Website ›

Frequently Asked Questions

How can I register for a training course?

  • To register online through our website, please click “Enroll Now” on the course page, complete and submit the form. A confirmation e-mail and instructions will be sent to the participant’s e-mail.
  • You may also get in touch with our Registration Team on
    +971 50 981 7386 | +971 2 557 7389 or send an email to reg@petroknowledge.com

When and how do I arrange payments?

  • Payments can be made in USD or UAE local currency AED (Arab Emirates Dirhams) either by Bank Transfer or by Credit Card. Our Bank Account details will be provided on the invoice.
  • Course fees are payable upon booking unless a valid, authorized Purchase Order is provided and accepted.
  • Invoices will be sent via email/courier to the ID/name and address provided.
  • The course fee shall be settled prior to course start date. Corporate payments with existing payment policy shall be relayed to us in advance.

When should I expect to receive confirmation of registration?

Upon successful registration online, enrolment on the respective training course will be confirmed by Registration Team by e-mail along with the invoice and joining instruction.

Is there a discount for more than one registrant/course?

For corporate fees and group registration, please send your query to info@petroknowledge.com.

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All rights reserved. Any unauthorized copying, distribution, use, dissemination, downloading, storing (in any medium), transmission, reproduction or reliance in whole or any part of this course outline is prohibited and will constitute an infringement of copyright.


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