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

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

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

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

Financial Analysis, Budgets and Management Reports

Analysis of Financial statements

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