The “Upstream Petroleum Contracts, Accounting & Auditing Policies and Procedures” course at Dubai Premier Centre (DPC) is a comprehensive programme crafted for professionals involved in the oil and gas sector, specifically within upstream operations. The intricate nature of petroleum contract negotiation, alongside the unique challenges of accounting and auditing in this industry, calls for in-depth knowledge and specialised skills. This course addresses these needs by covering core areas such as exploration and production agreements, joint venture accounting, and financial reporting for oil and gas ventures, equipping participants with the expertise to excel in upstream petroleum finance and compliance.
Through a hands-on approach, attendees will gain insights into cost recovery mechanisms, production sharing agreements (PSA), and risk and reward allocation in upstream projects, each crucial for creating viable contracts that satisfy both operational needs and regulatory demands. This course also delves into royalty and taxation compliance, capital expenditure (CAPEX) strategies, profit and loss analysis in oil contracts, and cost control in exploration and development, helping professionals manage financial complexities effectively.
Our dedicated curriculum explores auditing standards in upstream oil, regulatory compliance in petroleum accounting, and reserves and depletion accounting, each integral to maintaining accurate, reliable records within the sector.
Objectives and target group
The core objective of this course is to empower participants with a robust understanding of upstream petroleum contracts, alongside the accounting and auditing policies and procedures essential for regulatory alignment and effective financial management. By the end of this course, participants will be well-equipped to:
- Navigate the complexities of petroleum contract negotiation and the formulation of mutually beneficial agreements.
- Analyse and apply cost recovery mechanisms and production sharing agreements to enhance project profitability.
- Assess revenue recognition in the context of petroleum contracts, ensuring accuracy in financial reporting.
- Implement risk and reward allocation strategies, promoting balanced outcomes in upstream projects.
- Ensure compliance with royalty and taxation obligations within the industry.
- Apply effective financial management practices, including CAPEX planning, operational budgeting, and cost control in exploration and development.
- Develop proficiency in auditing standards specific to upstream oil operations, ensuring adherence to industry requirements.
Target Audience
This course is tailored for individuals involved in the financial and contractual management of upstream oil and gas projects. It is ideal for:
- Petroleum accountants and financial controllers within the oil and gas industry seeking to deepen their understanding of contract and accounting policies.
- Contract managers and legal advisors who regularly handle exploration and production agreements, joint operating agreements (JOA), and production sharing agreements (PSA).
- Auditors and compliance officers interested in learning about auditing standards in upstream oil and regulatory compliance in petroleum accounting.
- Project managers and operations leads involved in cost control, revenue and cost allocation, and profit and loss analysis within upstream projects.
- Professionals in joint venture accounting, financial reporting for oil and gas, and risk and reward allocation in upstream projects who aim to bolster their expertise and ensure compliance.
Course Content
This course comprises detailed modules that address the crucial aspects of upstream petroleum contracts, accounting policies, and auditing procedures. Each module has been crafted to provide a comprehensive understanding of essential topics:
Introduction to Upstream Petroleum Contracts
- Overview of upstream petroleum industry and its distinct financial and regulatory needs.
- Key elements of petroleum contract negotiation and formulation of exploration and production agreements.
- The role of joint operating agreements (JOA) in managing joint venture accounting and cost control in exploration and development.
Contractual Arrangements and Financial Mechanisms
- In-depth exploration of cost recovery mechanisms and production sharing agreements (PSA).
- Detailed analysis of risk and reward allocation in upstream projects, supporting balanced decision-making.
- Royalty and taxation compliance essentials, covering different tax regimes and compliance strategies.
- Managing capital expenditure (CAPEX) in oil and gas, with a focus on operational budgeting in petroleum projects.
Financial Reporting and Revenue Recognition
- Principles of revenue recognition in petroleum contracts and maintaining transparency in financial reporting for oil and gas operations.
- Techniques for profit and loss analysis in oil contracts, covering revenue and cost allocation.
- Reserves and depletion accounting standards, with a focus on sustaining asset value and regulatory compliance.
Auditing Standards and Regulatory Compliance
- Comprehensive review of auditing standards in upstream oil and their application to financial reporting and contractual compliance.
- Methods for ensuring regulatory compliance in petroleum accounting, focusing on industry-specific requirements.
- Strategies for implementing robust auditing policies and understanding financial management in upstream petroleum.
Case Studies and Practical Application
- Real-world case studies on upstream petroleum contracts to illustrate best practices in contract negotiation and cost control.
- Practical exercises covering joint venture accounting, production sharing agreements, and risk management in upstream oil.
- Review of financial statements and auditing reports within the upstream petroleum sector, applying classroom knowledge to industry scenarios.