Upstream Petroleum Contracts Accounting & Auditing Policies and Procedures

An Interactive 10 - Day Training Course

Upstream Petroleum Contracts Accounting &
Auditing Policies and Procedures

An In-depth Guide for Oil and Gas Professionals

Classroom Dates
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10 - 21 Jun 2024
Istanbul
$11,900
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29 Jul - 09 Aug 2024
London
$11,900
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19 - 30 Aug 2024
Dubai
$11,900
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07 - 18 Oct 2024
Lisbon
$11,900
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18 - 29 Nov 2024
Dubai
$11,900
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30 Dec 2024 - 10 Jan 2025
Dubai
$11,900
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31 Mar - 11 Apr 2025
London
$11,900
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28 Apr - 09 May 2025
Dubai
$11,900
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This 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 Energy Training Centre 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

This training course is split in two modules:

MODULE I - Upstream Petroleum Contracts

MODULE II - Upstream Petroleum Accounting

Each modules is structured and can be taken as a stand-alone training course; however, delegates with will maximise their benefits by taking Module 1 and 2 back-to-back as a 2-week training course.

At the end of this Upstream Petroleum Contracts Accounting & Auditing Policies and Procedures 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

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.

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

This Upstream Petroleum Contracts Accounting & Auditing Policies and Procedures 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

This Upstream Petroleum Contracts Accounting & Auditing Policies and Procedures training course is appropriate to a wide range of professionals but will greatly benefit:

  • Senior Contract Negotiators and Managers
  • Legal Managers and Legal Counsel
  • Commercial and Business Managers
  • Contracts Administrators and Managers
  • Commercial, Financial and Insurance Professionals
  • Project and General Management Personnel
  • Corporate Accountants, Financial Controllers, Treasury Officers, Management Accountants
  • 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
Module 1: Upstream Petroleum Contracts

Day One: 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 Two: 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 Three: Production Sharing Contracts (PSC) & Joint Operating Agreements (JOA)

  • Commercial Terms in Licensing and Concession Agreements
    • Fiscal Arrangements, License Fees
    • Five Key Financial Aspects to a PSC:

(a) Royalty, The R factor
(b) Cost Oil
(c) Profit Oil
(d) Taxation
(e) Bonuses, 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 Four: 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 Five: 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 2: 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

We offer two main training formats to cater to different preferences and needs: 

  • Classroom Training Delivery – Our traditional classroom-based training courses provide a face-to-face learning experience with subject matter experts. You’ll benefit form in-person interactions, hands-on exercises, and a structured classroom environment.
  • Online Training Delivery – We also offer convenient live/online training courses that you can access from anywhere with a stable internet connection. These courses provided flexibility and allow you to learn anywhere, making them suitable for busy schedules or remote learning.

The Energy Training Centre Certificate of Completion with corresponding learning hours who has successfully completed the training course.

Yes, we provide assistance by issuing a Letter of Invitation stating that you are confirmed to attend our training.

We value transparency and are happy to provide our instructor’s profiles upon request. If you would like to learn more about our instructor’s’ qualifications, expertise, and experiences, please email us at info@energytraining.ae.

Yes, we do. We provide tailored training courses designed to meet the specific requirement of larger group of individuals. These customized training courses can be conducted both classroom and online formats, allowing you the flexibility to choose you preferred dates and duration.

Please contact us at inhouse@energytraining.ae to discuss your group’s training needs, and we’ll work with you to create a personalized training course that aligns with your objectives.

We have multiple international training venues. You may find this through our website link: https://energytraining.ae/training-locations 

Our training courses are held at our partnered hotels within the city included within our training

Yes, here are the following options we can offer to assist you:

  • Corporate Discount – We can extend our corporate discount to participants staying at the same hotel, if we have any. Please enquire about the availability of this discount when you register for the training course.
  • Nearby Hotel Suggestions – If you prefer other accommodations, we can provide a list of nearby hotels to suit your needs and budget.

Feel free to go through hotel booking platforms on the internet to find the most cost-effective for you.

No, we do not provide job placement services after the training course. However, we are confident that our training course equips you with the necessary tools and knowledge to enhance you career prospects and promote career growth. Our training course are designed to empower you with valuable skills and expertise to excel in your chosen field.

Classroom
  • Tuition fee for a 5-day training course
  • Provision of a world-class subject matter expert to deliver this training
  • Meeting at a hotel venue corresponding to your chosen session
  • Welcome food and drinks, AM / PM snack, and Lunch
  • Digital course materials (e-Tablet)
  • Course completion certificates
  • Designing and administration of Pre-& Post Course Assessments
  • Preparation of participant’s Performance and Appraisal Report, if required
  • Issuance of Letter of Invitation for delegates needed visa processing, if required
Online
  • Tuition fee for a 5-day online training course
  • Provision of a world-class subject matter expert to deliver this training through live/virtual delivery
  • An electronic copy of the training manual and relevant hand-outs
  • Issuance of The Energy Training Centre e-Certificate of Completion
  • Administration of Pre-& Post Workshop Assessments
  • Link access of online platform acceptable to both parties

Certainly, we do provide corporate rates tailored for organizations seeking to enrol multiple employees in our training programs. To facilitate this, we encourage you to make a formal request via email addressed to info@energytraining.ae. We’ll be delighted to discuss and offer a suitable arrangement for your corporate needs.

Yes, special discounts are available upon request if you have more than one registrant for a course. For further information please email us at info@energytraining.ae

We offer two convenient payment options:

  • Bank Transfer – You can make payment via bank transfer. Once your registration is confirmed, you will receive an invoice with the banking details for the transfer. We would require you to supply a swift copy for us to confirm receipt of funds.
  • Payment Link – Alternatively, we provide a secure payment link that you can use to complete your payment after your registration has been confirmed.

Upon receipt of your registration details sent via email at reg@energytraining.ae, we will send you the following by e-mail within 24-48 hours of registration.

  • Joining Instructions
  • Invoice/receipt (where appropriate)

 If you register online, you will receive an e-mail on the same day confirming your registration.

There are two convenient options to register for a training course:

  • Online Registration Form – Register for your desired training course by completing the online registration form available on our website. Simple click on the registration button or select your preferred dates and provide the requested information.
  • Email Registration – You can email us your intention to register at info@energytraining.ae. Our team will guide you through the registration process and provide assistance you may need.

Yes, we do allow registration transfers in the event that you are unable to attend the training course. To initiate a transfer, please send us an official email requesting the change. We’ll guide you through the transfer process and ensure a smooth transition of your registration to another eligible participant.

Our training course sessions are scheduled and posted on our website for your convenience. However, we understand that there may be specific requirement for your group. If you have a preferred venue and specific training dates in mind, please feel free to propose them to us by clicking on the button “Propose you preferred location & date” of your preferred training course.

Our course timings slightly vary between the cities we offer our training courses. Please let us know of your preferred course and session (dates/venue) through email at info@energytraining.ae. Alternatively, you may call/WhatsApp us at +971 50 746 0956.

We understand that time zones may be different between our Senior Consultants and our delegates. Our standard online course timings (11:00 AM to 4:00 PM, GMT+4 – Dubai, UAE) may be adjusted upon confirming the programme. Our team shall communicate between the confirmed registered delegates and suggested a suitable course timing for all.

Our standard course duration for our classroom programmes is 6 hours per day while our online session is 5 hours per day.

Our training programmes are designed to be concise yet comprehensive, focusing on professional development. The duration varies based on the specific course content and objectives – we normally offer programmes between 5 – 10 days. However, our emphasis lies in delivering interactive and engaging sessions that prioritize depth of learning within a condensed timeframe. This approach ensures participants acquire substantial knowledge and skills efficiently.

We have been assessed by TUV Rheinland Middle East FZE and comply with Quality Management System standards – ISO 9001:2015 and ISO 29993:2017, ensuring a commitment to quality and excellence in our operations and services.

Our training courses span across diverse industries, encompassing sectors such as but not limited to:

  • Power & Utilities
  • Oil & Gas
  • Financial Institutions
  • Government and Regulatory bodies
  • Manufacturing & Production Industry

Our commitment lies in continuously refining and expanding our training course offerings to align with evolving industry landscapes. We encourage individuals to explore our website or engage with our dedicated support team for the latest information on available courses, ensuring access to the most pertinent and current educational resources.

Yes, Energy Training Centre is an ILM Recognised Provider (ID# 002398B), authorized to register learners and offer training courses recognized by ILM. Participants seeking ILM Recognised Certification would need to complete an assessment post the ILM Recognised courses. ILM is a renowned provider of leadership and management qualifications, part of the City and Guilds Group. Additionally, our company is a CPD Certified Training Company, ensuring our commitment to continuous professional development standards.

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