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Financial Management for Oil & Gas Sector

Course Overview

This course is not designed to skill Oil & Gas engineers to be accountants, but to give participants the confidence and ability to communicate with accountants and finance managers and to improve their own financial decision making.

Course Objectives

  • provide Oil & Gas professionals with an understanding of financial information and management
  • create an awareness of the economic theory that drives value creation
  • improve participants’ financial decision making

Duration – 5 Days

Curriculum

Introduction
The Value Chain, The Financial Statements, The Balance Sheet, The Profit & Loss Statement, The Cash Flow Statement

Cash vs Profit
The difference between cash flow and profit, The concept & implications of accrual accounting

Managerial Accounting
Cash Cost and Full Cost Accounting, Transfer Pricing

Project Investment Analysis
The time value of money, Preparing a discounted cash flow statement

Accounting Ratios & Key Performance
What are the key financial ratios, How to use accounting KPIs to manage the business

The Corporate Budget
Net Present Value, Internal Rate of Return, Payback

Risk & Sensitivity Analysis

Cash Planning and Control
Managing Working Capital

Decision Analysis
Decision Trees, Probability of success, Portfolio approach to exploration decisions

Petroleum Fiscal Regimes
The concept of economic rent, Exploration Prospectivity vs Government Take, Production Sharing Contracts (PSC)

Cash Flow Analysis of Production Sharing Contracts (PSCs)

Energy Company Valuations