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Accounting and Performance Metrics in the Oil, Gas, and Petrochemical

Introduction

This training course is crafted to bolster the foundational skills needed to manage and assess accounting and performance metrics within the Oil, Gas, and Petrochemical sectors. It delves into the sector-specific challenges such as fluctuations in oil prices and shifts in market demand. The course provides in-depth insights into contemporary financial evaluation methods, operational and social performance assessments, alongside adherence to International Financial Reporting Standards (IFRS) crucial for Oil & Gas financial documentation. Participants will be equipped to produce IFRS-compliant financial reports and strategize enhancements for their organizations' financial health.


Course Objectives

  • Analyze critical challenges prevalent in the Oil & Gas and Petrochemical industries.
  • Compile financial reports following International Financial Reporting Standards (IFRS).
  • Assess the financial and operational health of global Oil & Gas and Petrochemical enterprises.
  • Understand the strategic significance of the Oil & Gas and Petrochemical sectors in national economic planning and budgeting.
  • Formulate strategic initiatives to boost sectoral performance.


Target Audience

  • Corporate Accountants, Financial Controllers, Treasury and Management Accountants.
  • Finance professionals in roles like General Accounting, Payables, Receivables, Inventory, and Fixed Assets.
  • Accountants and Auditors involved in Joint Ventures.
  • Auditors across External, Financial, and Internal branches.
  • Regulatory and Audit officials in government.
  • Analysts in Finance and Investment sectors.


Course Outline

Day 1: Sector Overview and Key Financial Challenges

  • Current dynamics in price and demand in the Oil, Gas, and Petrochemical sectors.
  • Macro-economic influences such as interest rates, currency exchange, and oil pricing.
  • Assessment of sector resources and reserves.
  • Analysis of strategic dilemmas and capital investment challenges.
  • Comparative performance evaluation across the industry.


Day 2: Sector-Specific Accounting Challenges

  • Approaches to revenue recognition.
  • Cost management in resource acquisition, exploration, development, and production.
  • Financial challenges in refining and petrochemical operations (The Crack Spread).
  • Analysis of Break Even Oil, Cost Oil & Profit Oil.
  • Application of IFRS specific to the Oil, Gas, and Petrochemical sectors.
  • Detailed look at IFRS 6 for Exploration & Evaluation of Mineral Assets.


Day 3: Asset Accounting

  • IAS 16 guidelines on Property, Plant, and Equipment.
  • Procedures for Depletion, Depreciation & Amortisation (DD&A).
  • Asset impairment as per IAS 36.
  • Provisions and contingencies under IAS 37.
  • Accounting for intangible assets with IAS 38.
  • Financial instruments recognition and measurement as per IAS 39 & IFRS 9.


Day 4: Financial Performance Metrics

  • Use of Cross Sectional & Time Series Analysis.
  • Detailed financial statement analysis including income statements and balance sheets.
  • Significance of cash flow analysis in the sector.
  • Dupont Analysis for Return On Equity (ROE) improvement.
  • Performance evaluation via share price and investment returns.
  • Comparative financial performance analysis of sector-leading companies.

Day 5: Operational and Governmental Efficiency Metrics

  • Reserve measurement metrics and their implications for refining and petrochemical operations.
  • Analysis of exploration, development, and production efficiencies.
  • Operational performance assessments of major international entities.
  • Project evaluation using Earned Value Added Analysis.
  • Fiscal budget analysis of oil and gas producing nations.
  • National and governmental performance efficiency metrics.


Training Benefits for the Organization

Organizations will benefit through:

  • Enhanced finance support to operational departments.
  • Improved accuracy and applicability of financial and managerial reports.
  • Strategic enhancements in performance oversight.
  • Optimal utilization of financial statements for competitive analysis.
  • Finance teams achieving greater autonomy and reduced supervisory needs.
  • Staff readiness for escalated responsibilities.


Training Benefits for the Trainee

Participants will gain:

  • A richer comprehension of their professional roles and their significance.
  • Increased awareness of industry standards, challenges, and solutions.
  • Enhanced capability and confidence in task execution.
  • Boosted motivation and job satisfaction through skilled support to management.
  • Improved supervisory, developmental, and motivational skills for team leadership.