Course Overview

Oil and gas companies operate in one of the most complex financial environments—where large capital investments, volatile prices, and regulatory pressures demand clear, accurate, and timely financial insights. Turning raw financial data into meaningful, actionable information is essential for making confident business decisions across the energy value chain.

The Financial Accounting, Reporting and Business Support in the Oil and Gas Industry programme focuses on bridging the gap between financial data and strategic decision-making. It equips participants with the ability to interpret financial results, apply international reporting standards, and support operational and strategic objectives effectively.

Over five intensive days, the course combines accounting principles with industry-specific practices, helping participants understand how financial reporting supports exploration, production, and downstream operations. It also addresses risk management, performance analysis, and financial planning in a sector characterised by uncertainty and high capital intensity.

By the end of the programme, participants will be able to align financial practices with business strategy, communicate insights clearly to stakeholders, and contribute as trusted financial partners within their organisations.

Agenda

Day — 1 Introduction to Financial Accounting in the Oil & Gas Industry

• Understanding the structure and value chain of the oil and gas industry:
  • Upstream (exploration and production)
  • Midstream (transportation and storage)
  • Downstream (refining and distribution)
• Analysing key industry challenges and their financial implications
• Understanding the role of finance professionals in exploration and production operations
• Reviewing financial reporting frameworks and standards relevant to the sector
• Applying core accounting principles within oil and gas operations
• Exercise: Preparing accounting entries for basic exploration and production activities

Day — 2 Accounting Methods & Financial Treatment of Oil & Gas Operations

• Understanding key accounting methods used in the industry:
  • Successful Efforts Method
  • Full Cost Method
• Applying IFRS and IAS standards to exploration, evaluation, and production activities
• Accounting for tangible and intangible assets:
  • Asset recognition
  • Depreciation (for fixed assets)
  • Depletion (for natural resources)
  • Amortisation (for intangibles)
  • Asset retirement obligations (ARO)
• Understanding revenue recognition for:
  • Production sharing agreements
  • Joint arrangements
  • Liftings (production entitlement)
• Applying inventory accounting for crude oil, refined products, and by-products
• Case study: Comparing financial outcomes under different accounting methods for an exploration project

Day — 3 Joint Ventures & Financial Statements

• Understanding the structure and purpose of joint ventures and production sharing agreements (PSAs)
• Assessing accounting and reporting implications for joint operations and shared assets
• Interpreting key financial statements in the oil and gas context:
  • Income statement
  • Balance sheet
  • Cash flow statement
• Applying ratio analysis and industry-specific performance metrics
• Evaluating operational efficiency, solvency, and profitability through financial ratios
• Case study: Performing ratio analysis using oil and gas financial statements

Day — 4 Risk Management & Financial Controls in the Oil & Gas Industry

• Identifying key financial and operational risks in oil and gas operations (price volatility, geopolitical risk, FX exposure, operational disruptions)
• Applying risk management frameworks and governance practices specific to the energy sector
• Using hedging instruments to manage exposure to oil price fluctuations and foreign exchange risk
• Introducing probabilistic risk assessment techniques, including Monte Carlo simulation
• Strengthening contingency planning, internal controls, and risk-adjusted decision-making
• Case study: Evaluating a company’s hedging strategy against oil price volatility

Day — 5 Capital Contracting & Project Performance Reporting

• Understanding the finance function as a strategic business partner across the oil and gas value chain
• Translating business needs into measurable Key Performance Indicators (KPIs)
• Developing and challenging cost estimates for capital-intensive projects
• Applying Earned Value Management (EVM) to track and evaluate project performance
• Preparing clear, decision-focused management reports for senior leadership
• Case study: Analysing a post-implementation report of a major oil and gas project

Learning Outcomes

By attending the Financial Accounting, Reporting and Business Support in the Oil and Gas Industry programme, you will be able to:

• Understand the structure and financial dynamics of the oil and gas industry and how they influence accounting and reporting practices
• Apply industry-specific accounting methods, including Successful Efforts and Full Cost approaches, for exploration and production activities
• Interpret and apply relevant IFRS and IAS standards for exploration, evaluation, asset management, and revenue recognition
• Analyse financial statements using industry-specific ratios and benchmarks to assess performance, efficiency, and solvency
• Evaluate accounting implications of joint ventures, production sharing agreements, and shared asset structures
• Identify and manage financial and operational risks using risk management frameworks, hedging strategies, and internal controls
• Support capital projects and performance management through cost estimation, Earned Value Management (EVM), and reporting
• Strengthen strategic finance capabilities by linking financial insights to KPIs and business performance
• Provide analytical support for strategic and operational decision-making in oil and gas organisations

Who Should Attend

This programme is designed for professionals looking to strengthen financial management and reporting within the energy sector, particularly:

• Finance, accounting, and reporting professionals in oil and gas organisations
• Project accountants and controllers involved in exploration, development, and production activities
• Budgeting, cost control, and performance analysts supporting capital-intensive projects
• Professionals managing joint venture accounting and production sharing agreements
• Individuals aiming to enhance their role as strategic financial business partners in oil and gas companies