.  You will learn how to:

• Understand how your activities and decisions are reflected in your company’s reporting to shareholders and other stakeholders
• Find out what happens to financial and economic data that is provided by you and your departmental colleagues
• Raise your level of confidence in working with financial information and interactions with commercial colleagues
• Prepare yourself for increased responsibility and a more strategic role in the management of your company

• appreciate the financial impact of your day-to-day decisions and actions
• work more confidently and effectively with colleagues on financial matters
• improve the quality of information you receive from and provide to Finance
• increase the success rate of requests for authorisation of expenditure and make more effective use of funds allocated
• use departmental budgets and monthly management reports to help you exercise financial control of your area of operations
• understand the financial information disclosed in your company’s annual report and accounts
• Learning throughout the programme will be reinforced by case studies, worked examples, and illustrative extracts from oil and gas company annual reports

Day One

The E&P Business and Project Economics

• The Business Environment
  • Business objectives
  • Stakeholders
  • Corporate governance
• The E&P Business
  • Risk and reward
  • Commercial arrangements
  • The field life cycle
• Project Economics
  • Project cash flows
  • The time value of money
  • Discounting and the cost of capital
  • Project economic models
  • Decision criteria

Day Two

Accounting, Exploration and Development Costs

• The Accounting System
  • Capturing and recording data
  • Cash and accruals
  • The balance sheet
  • The income statement and profit measurement
  • Accounting principles and standards
• Capital and Operating Expenditure
  • Matching costs and benefits
  • Assets and expenses
• Exploration and Appraisal Costs
  • Full cost and successful efforts
  • Intangible assets
• Development costs
  • Commitments
  • Tangible assets

Day Three

Reserves, Production and Cost of Sales

• Reserves of Oil & Gas
  • Classification of reserves
  • Reserve quantity disclosures
• Production Costs
  • Lifting costs
  • Maintenance costs
  • Royalties
• Depreciation, Depletion and Amortisation (DD&A)
  • Unit of Production (UOP) method
  • Changes in costs and reserves
• Ceiling or Impairment Tests
  • Test requirement and process
  • Accounting for test results
• Decommissioning, Removal and Restoration
  • Obligations to remove and restore
  • Reporting of decommissioning liabilities and costs

Day Four

Risk and Cost Sharing Arrangements

• Joint Ventures
  • Cash calls
  • Billing statements
  • Entitlements and liftings
• Transfers of interests or risks
  • Farm outs
  • Carried interests
• Production sharing contracts
  • Cash flow implications
  • Reserve implications
• Long-term gas contracts
  • Pricing mechanisms
  • Take or pay

Day Five

Financial Analysis, Budgets and Management Reports

Analysis of Financial statements

• Profitability, liquidity and solvency
• Investment measures
• Budgets
  • Authorizations of expenditure
  • The budget process
• Management reports
  • Responsibility reporting
  • Analysis of variances

CDGA attendance certificate will be issued to all attendees completing minimum of 75% of the total course duration.