Oil and Gas Financial Management Training Course

Participants can interpret oil and gas financial statements and identify decision-relevant accounting drivers.

• Income statement drivers: production revenue, royalties, depreciation and operating costs
• Balance sheet composition for exploration, development and production assets
• Cash-flow statement analysis separating operating, investing and financing movements
• Working capital cycles for crude sales, inventories and contractor payments
• EBITDA, operating cash flow and free cash flow reconciliations
• Financial-ratio analysis for liquidity, profitability, capital efficiency and debt

Participants can model revenue using production, pricing, entitlement and deduction assumptions.

• Production volumes converted from gross production to net revenue interest
• Realised-price bridges separating benchmark prices, differentials and transportation deductions
• Revenue recognition timing for delivered hydrocarbons and contractual performance obligations
• Production allocation methods for commingled fields and shared facilities
• Gas processing, shrinkage and natural-gas-liquids revenue allocation
• Forecast revenue schedules using volumes, prices, ownership and fiscal assumptions

Participants can classify operating costs and identify the operational drivers behind material variances.

• Lifting-cost components: labour, chemicals, fuel, maintenance and logistics
• Fixed, variable, semi-variable and step-cost behaviour in field operations
• Unit-cost metrics using barrels of oil equivalent and throughput
• Cost-driver trees linking activity volumes to controllable expenditure
• Maintenance strategies and their effect on downtime and operating costs
• Benchmarking lifting costs against production maturity and asset characteristics

Participants can prepare an operating budget based on production plans and resource requirements.

• Driver-based budgets built from production, staffing and maintenance assumptions
• Annual budget calendars, ownership matrices and management review gates
• Production-volume assumptions linked to operating-cost and revenue forecasts
• Zero-based review of discretionary services, travel and external support
• Contract-rate escalation, foreign exchange and inflation assumptions documented
• Budget narratives explaining assumptions, risks, actions and accountable owners

Participants can develop capital budgets and control expenditure against approved AFEs.

• Capital expenditure categories for wells, facilities, pipelines and infrastructure
• AFE structure: scope, estimate basis, contingencies, approvals and funding
• Work breakdown structures connecting project scope to cost accounts
• Capital-budget phasing by engineering, procurement, construction and commissioning
• Commitment registers tracking purchase orders, contracts, changes and remaining funds
• Supplemental AFE requests triggered by scope, schedule or estimate changes

Participants can establish cost estimates and control baselines for oil and gas projects.

• Classifying estimates using AACE International estimate-class definitions
• Bottom-up estimates from quantities, rates, productivity and indirect costs
• Parametric estimates using capacity, complexity and location cost factors
• Contingency analysis based on identified risks and estimate maturity
• Cost baselines frozen after approved scope, schedule and estimate alignment
• Control accounts assigning cost responsibility to defined work packages

Participants can investigate cost variances and recommend corrective management actions.

• Actual-versus-budget variance analysis separating price, volume and timing effects
• Flexible budgets restated for actual production and activity volumes
• Commitment, accrual and invoice data reconciled before cost reporting
• Root-cause analysis distinguishing scope changes from execution inefficiency
• Forecast-at-completion calculations using actual costs and remaining estimates
• Management variance reports specifying actions, owners, deadlines and financial impact

Participants can use earned value metrics to assess capital-project cost and schedule performance.

• Planned value, earned value and actual cost defined consistently
• Work-package progress rules preventing subjective percentage-complete reporting
• Cost performance index and schedule performance index calculations
• Estimate-at-completion forecasting using earned value performance trends
• Schedule slippage translated into cost, cash-flow and contractor impacts
• Earned value dashboards highlighting exceptions requiring management intervention

Participants can prepare rolling cash forecasts for operating assets and capital projects.

• Thirteen-week cash forecasts built from receipts, payroll and supplier data
• Cash-in schedules for crude sales, gas sales and partner recoveries
• Cash-out forecasts for payroll, contractors, procurement and debt service
• Payment-term analysis identifying liquidity pressure and working-capital opportunities
• Scenario testing for price declines, production outages and delayed receivables
• Funding plans linking forecast deficits to facilities, equity or partner calls

Participants can administer joint-venture costs, billings and cash calls with appropriate controls.

• Working-interest ownership schedules maintained through transfers and redeterminations
• Joint-interest billing processes for operator charges and partner recoveries
• Cash-call calculations based on approved budgets, commitments and timing
• Billable-cost verification against joint operating agreement provisions
• Partner statements reconciled to general ledger, subledger and bank movements
• Joint-venture audit preparation using supporting documents and allocation schedules

Participants can assess how fiscal terms affect project cash flows and government take.

• Royalty calculations based on volume, value, price thresholds and deductions
• Production sharing waterfalls for cost oil, profit oil and state entitlement
• Cost-recovery limits, uplift mechanisms and unrecovered-cost tracking
• Income-tax calculations incorporating deductible expenditure and loss carryforwards
• Government take compared through effective tax rate and cash-flow measures
• Fiscal sensitivity analysis for price, cost, production and timing changes

Participants can evaluate oil and gas investments using cash-flow and value-based methods.

• Discounted cash-flow models structured around development and production profiles
• Net present value calculated using stated discount-rate assumptions
• Internal rate of return interpreted alongside NPV and capital constraints
• Payback period and profitability index used for portfolio screening
• Decision trees evaluating exploration outcomes and staged investment choices
• Investment recommendation papers linking economics, risks and strategic rationale

Participants can quantify financial uncertainty and communicate its implications for decisions.

• Sensitivity tables testing price, production, capex, opex and discount rates
• Scenario analysis comparing base, upside, downside and stress cases
• Monte Carlo simulation concepts for uncertain reserves, prices and costs
• Tornado charts ranking variables by effect on project value
• Risk registers connected to contingency, mitigation actions and ownership
• Decision thresholds defined for approval, deferral, redesign or abandonment

Participants can control materials costs and assess inventory impacts on operating performance.

• IAS 2 inventory measurement using cost and net realisable value
• Weighted-average and FIFO methods applied to materials and spare parts
• Minimum-stock, reorder-point and safety-stock settings for critical spares
• Obsolescence provisions for slow-moving, surplus and expired inventory
• Materials variance analysis covering purchase price, usage and losses
• Warehouse-cycle-count controls reconciling physical stocks to ledger records

Participants can account for producing assets and identify impairment indicators.

• IFRS 6 treatment of exploration and evaluation expenditure
• Successful-efforts and full-cost approaches compared at a conceptual level
• Unit-of-production depreciation based on reserves and production volumes
• IAS 36 impairment indicators for oil and gas cash-generating units
• Value-in-use forecasts incorporating reserves, prices, costs and discount rates
• Impairment reversals, disclosures and management-accountability considerations

Participants can estimate and report decommissioning obligations within asset economics and forecasts.

• Asset-retirement obligations identified from licences, contracts and regulations
• IAS 37 provisions measured using expected cash flows and discounting
• Decommissioning cost estimates linked to wells, facilities and site restoration
• Unwinding of discount recognised as finance cost over time
• Asset-retirement-cost capitalisation and subsequent depreciation treatment
• Closure-cost scenarios incorporated into field-life and investment models

Participants can produce decision-focused reports linking financial outcomes to operational performance.

• Monthly performance packs combining production, cost, cash and capital metrics
• KPI scorecards for lifting cost, availability, spend and forecast accuracy
• Bridge charts explaining movements between budget, forecast and actual results
• Management commentary distinguishing facts, assumptions, risks and required decisions
• Exception-based reporting focused on material variances and control breaches
• Board-paper structures presenting options, financial implications and recommendations

Participants can design practical financial controls for oil and gas expenditure and reporting.

• Segregation-of-duties matrices for procurement, approvals, payments and accounting
• Delegated-authority limits aligned with AFEs, contracts and budget ownership
• Three-way matching between purchase orders, goods receipts and invoices
• Accrual controls ensuring costs are reported in correct periods
• Change-control logs documenting scope, cost, schedule and approval history
• Audit trails supporting partner reviews, internal audit and external assurance

Participants can build, review and present a complete financial-control pack for an oil and gas asset or project.

• Operating and capital budgets integrated with production and project schedules
• Rolling cash forecast incorporating revenue, contractor payments and partner cash calls
• Project economics model using NPV, IRR, sensitivities and fiscal assumptions
• Cost-control dashboard showing commitments, accruals, variances and forecast completion
• Risk register linking uncertainties to contingencies, actions and decision thresholds
• Management presentation recommending funding, cost-control and investment actions