The Advanced Oil and Gas Accounting Training Course by Oxford Training Centre is developed for professionals managing the financial complexities of exploration, production, and petroleum operations. It delivers a detailed understanding of accounting principles applied within the unique context of the global energy sector.
Participants will examine advanced accounting treatments for capital and operational costs, joint ventures, production sharing agreements, and revenue recognition across different stages of the oil and gas value chain. The course also addresses IFRS and US GAAP compliance, depletion methodologies, and asset retirement obligations.
Through a balance of technical instruction and applied learning, professionals will strengthen their reporting capabilities and interpret financial data relevant to strategic planning, cost control, and regulatory disclosures. Real-world case examples enhance participants’ understanding of how financial accuracy supports performance transparency.
This course is part of Oxford’s advanced-level Oil and Gas Training Courses, supporting professionals who need to apply global accounting standards across complex energy operations while maintaining control, audit readiness, and reporting integrity.
Objectives
- Apply accounting principles to oil and gas exploration, development, and production phases
- Understand and prepare financial statements under IFRS and US GAAP
- Accurately account for joint operations and production-sharing contracts
- Assess and record asset impairments and abandonment obligations
- Manage lifting imbalances, revenue entitlements, and sales timing
- Navigate key disclosures related to reserves, impairments, and cost recovery
- Use analysis tools to evaluate oil and gas financial performance
Target Audience
- Financial controllers and accountants in upstream and midstream operations
- Exploration and production finance analysts
- Joint venture and cost accountants
- Petroleum financial reporting specialists
- Auditors working with oil and gas clients
- Professionals enrolled in an oil and gas accounting course
- Individuals pursuing oil and gas accounting certification
How Will Attendees Benefit?
- Build practical expertise in petroleum-specific financial reporting
- Improve accuracy and transparency in reserve and cost disclosures
- Strengthen compliance with IFRS and US GAAP standards
- Understand financial impacts of ARO, impairment, and asset retirement
- Develop capability in cost recovery, joint venture accounting, and PSCs
- Apply methodologies used in leading oil and gas accounting courses
- Support internal controls and external audit processes with confidence
Course Content
Module 1: Oil and Gas Industry Accounting Environment
- Overview of upstream, midstream, and downstream financial flows
- Sector-specific accounting challenges and reporting complexity
- Overview of key regulatory frameworks impacting the industry
Module 2: Accounting for Exploration and Evaluation
- Capitalisation criteria for geological and seismic activities
- Treatment of dry holes and unsuccessful exploration costs
- Assessment of impairment indicators under IFRS 6
Module 3: Development and Production Cost Accounting
- Distinction between tangible and intangible development assets
- Application of depletion and amortisation techniques
- Unit of production method and reserves estimation
Module 4: Joint Ventures and Cost Sharing
- Accounting entries for operator and non-operator roles
- Cash calls, billing procedures, and expenditure tracking
- Reconciliation and reporting for joint venture partners
Module 5: Revenue Recognition and Sales Accounting
- Timing of revenue recognition for oil, gas, and NGLs
- Measurement of lifting imbalances and entitlement methods
- Impact of sales contracts and offtake agreements
Module 6: Asset Retirement Obligations
- Estimating decommissioning costs and future liabilities
- Discounting and unwinding of ARO under IAS 37 and ASC 410
- Recognition and subsequent measurement of ARO provisions
Module 7: Impairments and Revaluations
- Identification of cash-generating units (CGUs)
- Recoverable amount calculations and discount rate selection
- Disclosure and reporting of impairment losses and reversals
Module 8: Production Sharing Contracts and PSCs
- Classification and structure of cost oil and profit oil
- Treatment of government take and tax considerations
- Accounting for cost recovery and volume entitlement
Module 9: Financial Reporting and Disclosures
- Preparation of full financial statements under IFRS/GAAP
- Required disclosures for reserves, impairments, and ARO
- Analysis of key financial performance indicators
Module 10: Audit, Compliance, and Internal Controls
- Audit requirements unique to oil and gas operations
- Implementation of control frameworks and segregation of duties
- Managing risks and documentation for regulatory audits