10 days GIP/FMC
- Upstream professionals who would like to understand the bases of financial analysis in the upstream Oil & Gas activities.
- This course provides a deeper knowledge on accounting in the oil industry and to introduce the tools of financial analysis and management.
- Upon completion of the course, participants will be able to:
- appreciate the specificities of the international petroleum accounting standards,
- define fundamentals of cost analysis and control,
- analyze the financial situation of a company,
- use the methodology and techniques of audit.
- Basic knowledge in the areas of financial accounting, management accounting or corporate finance.
Ways and means
- Case studies and exercises.
Module 1 - FUNDAMENTALS OF OIL & GAS ACCOUNTING & COSTS CONTROL METHODOLOGY
E&P fundamentals 0.5 day
Accounting standards 2.5 days
- Accounting principles
- Accounting system and principles, accounting plan, financial statements, valuation of assets.
- Depreciation and provision, income statement, balance sheet, cash flow statement and cash flow table.
- International accounting standards: IFRS and FAS, US GAAP, SEC requirements.
- Specific cases: relinquishment and site restoration, deferred taxes, potential badwill of fixed assets, etc.
Cost analysis & cost control 2 days
- Fundamentals of cost analysis:
- Direct and indirect costs, fixed and variable costs, total cost, etc.
- Methodology of cost allocation.
- Standard costs: purpose, identification and implementation.
- Budget and cost control:
- Cost accounting definition and implementation.
- Labor costs, inventories, etc.
Module 2 - FUNDAMENTALS OF FINANCIAL MANAGEMENT & AUDIT METHODOLOGY
External & internal financial audit 2 days
- Methodology and techniques of financial audit.
- Define an audit program.
- Evaluate the quality of internal control.
- Audit of the main business lines (inventories, procurement, fixed assets, payroll).
- Conduct of the audit.
- Audit report.
Financial management & financial analysis 3 days
- Fundamentals of financial analysis:
- Value creation and management, earnings and cash flow, free cash flow.
- Working capital, capital expenditures, return on assets, cost of capital.
- Short term financial management: cash and cash equivalents, short term debts, cash management.
- Financial management:
- Long term financial resources, risk and return.
- Financial securities: bonds and other debt, shares, other tools of corporate financing.
- Project financing:
- Definition, pros and cons, criteria of choice.
- Examples of success and analysis of failures, debt restructuring.