Upstream Petroleum Contracts Accounting &
Auditing Policies and Procedures
An In-depth Guide for Oil and Gas Professionals
10-Day Training Course
Upstream Petroleum Contracts Accounting &
Course Overview
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
Modules
This training course is split into 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.
Course Objectives
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
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.
Who Should Attend
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
Course Curriculum
Module 1: 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)
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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 Awarded
Certificate of Completion
After successfully completing this training course, participants will be awarded The Energy Training Centre Certificate of Completion — a respected validation of their dedication to continuous learning and professional excellence. This certificate signifies that participants have gained the essential knowledge and skills required to make a measurable impact in their field.
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Frequently Asked Questions
Our training courses are conducted at partnered hotels located within the specified training areas. Please note that venue assignments may vary based on availability. For the most current information, do not hesitate to contact us at [email protected].
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 [email protected] to discuss your group’s training needs, and we’ll work with you to create a personalized training course that aligns with your objectives.
Upon successful completion of the training course, you will receive The Energy Training Centre Certificate of Completion with corresponding learning hours.
Yes, special discounts are available upon request if you have more than one registrant for a course. For further information please email us at [email protected]
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 receiving your registration details, either via email at [email protected] or through our online registration form, we will send you the following by email within 24-48 hours of registration.
- Joining Instructions
- Invoice/receipt (where appropriate)
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 [email protected]. Our team will guide you through the registration process and provide assistance you may need.
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 suggest 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 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, The Energy Training Centre is certified and recognized by several prominent industry standards. Specifically, it holds certifications from ILM, Continuing Professional Development (CPD), and the Project Management Institute (PMI).
- ILM (ID# 002398B) – This certification indicates that our training programmes meet high standards for leadership and management development, ensuring that they are designed to enhance participants’ skills in these critical areas.
- Continuing Professional Development (CPD) – Our recognition by CPD reflects our commitment to providing educational opportunities that support ongoing professional growth and skill enhancement. This accreditation ensures that our training courses are relevant and effective for professionals seeking to advance their careers.
- Project Management Institute (PMI) – Being recognized by PMI signifies that our training programmes align with industry best practices in project management. This certification assures participants that our offerings are in line with the standards required for effective project management and are valuable for those pursuing or maintaining PMI credentials.
These certifications underscore our dedication to providing high-quality, industry-relevant training that fosters professional growth and meets established standards. Additionally, we are actively pursuing further certifications and affiliations to enhance our offerings and ensure we remain at the forefront of industry best practices.
About Energy Training Centre
Energy Training Centre is a leading provider of professional development programs for the energy and public sectors. With over 15 years of experience, we have trained more than 50,000 professionals across the Middle East and beyond.
Our expert-led courses are designed to meet the evolving needs of modern organizations, combining theoretical knowledge with practical applications that deliver immediate value to your career and organization.
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What Our Delegates Say
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Our instructor was very knowledgeable and passionate about the topic. She kept us very engaged.
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Today's session was an interesting and very useful introduction to the modules in production practices. Energy Training Centre Instructor taught in a lucid, chronological and helpful way. Looking forward to tomorrow’s session.
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