Course description

This introductory level course provides a comprehensive framework of major aspects of
accounting in the E&P industry. It is aimed at those who have gained experience in some aspects of E&P accounting and wish to gain a wider understanding, as well as those who have little or no oil and gas experience. On completion of this course you will improve your job performance by enhancing your understanding of current international practices in finance and accounting within the E&P industry. This is achieved through an examination of:

  • Accounting policies and practices in the oil and gas industry
  • The accounting and financial management implications of exploring for and producing oil and gas
  • Aspects of financial issues that are unique to the E&P industry and their accounting treatment.


Finance staff new to the industry who require a grounding in the various specialist discipline areas that typically comprise an oil and gas company finance function

Finance personnel who are being developed for broader accounting and financial management responsibilities

Audit and information systems staff who have frequent dealings with financial controls and systems

Treasury and tax specialists who require a better understanding of E&P finance and accounting


Course content

Introduction to the E&P industry
• Learn what is different about the exploration and production industry and the impact this has on accounting and financial management.
Accounting Policies

• How accounting policies influence the reporting of financial performance
• Successful Efforts and Full Cost Accounting
• How reserve data is used in accounting calculations
• How to calculate Depreciation, Depletion and Amortisation (DD&A)
• How to conduct a ceiling/impairment test
• How to account for decommissioning costs

Joint Venture & Production Sharing Accounting
Learn how to account for the transactions of a joint venture.

• Understanding a joint venture (JV) agreement
• What a JV agreement states about accounting
• How to prepare and process a cash call
• Understanding JV billings - how to prepare and process a JV billing statement
• How to allocate JV costs - identifying the correct costs and method of allocation


Cost Control & Analysis
Learn about the nature and behaviour of E&P industry costs and different methods of controlling costs.

• Project and Development Costs

- AFE’s and cost estimating

- How to control capital expenditures

• How to estimate and control Production Operating Costs

- Fixed & variable cost analysis

- Activity analysis

• Drilling Costs

- How to prepare well cost estimates

- How to control drilling expenditure

- How to forecast drilling AFE costs

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