Financial Management in Oil and Gas and Petrochemical Industries

Introduction:

This training program enhances financial management skills for professionals in the oil, gas, and petrochemical industries. Through it, participants will gain the knowledge to manage financial aspects effectively and drive industry performance.

Program Objectives:

At the end of this program, participants will be able to:

• Identify key issues facing the oil, gas, and petrochemical sectors.

• Prepare financial statements in line with IFRS.

• Evaluate financial and operational performance of industry companies.

• Assess the role of oil, gas, and petrochemicals in national budgets and economies.

• Recommend strategies to improve sector performance.

Targeted Audience:

• Corporate accountants, financial controllers, and treasury officers.

• Finance staff in general accounting, payables, receivables, inventory, and fixed assets.

• Joint venture accountants and auditors.

• External, internal, and financial auditors.

• Financial and investment analysts.

Program Outlines:

Unit 1:

Oil & Gas and Petrochemical Sectors – Key Accounting & Performance Issues:

• Impact of price volatility, supply, and demand changes.

• Managing macroeconomic factors (interest rates, oil prices).

• Strategic choices in the sector.

• Capital investment challenges.

• Sector-wide performance evaluation.

Unit 2:

Major Accounting Issues in Oil & Gas and Petrochemicals:

• Revenue recognition methods.

• Cost structures in exploration, development, and production.

• Crack spread issues for refineries and petrochemical companies.

• Break-even analysis: cost oil vs. profit oil.

• IFRS standards and their application in the sector.

Unit 3:

Accounting for Assets:

• IAS 16: Property, plant, and equipment management.

• Depletion, depreciation, and amortization (DD&A).

• IAS 36: Asset impairment.

• IAS 37: Provisions and contingent liabilities.

• IFRS 9: Financial instruments recognition and measurement.

Unit 4:

Measuring Financial Performance:

• Cross-sectional and time series analysis.

• Income statement and balance sheet analysis.

• Importance of cash flow analysis in oil and gas.

• Dupont analysis for improving Return on Equity (ROE).

• Share price and investment performance evaluation.

Unit 5:

Measuring Operational & National Performance:

• Measuring reserves: life, reserves per well, and replacement ratio.

• Evaluating development and production capability.

• Operational performance of leading international companies.

• Earned value-added analysis for projects.

• Evaluating fiscal budgets of oil-producing countries and national efficiency.