Financial Management of an International Oil & Gas CompanyGIP/FMC

Who should attend?

  • This course provides a deeper knowledge on accounting in the oil industry and to introduce the tools of financial analysis and management.
Audience :
  • Upstream professionals who would like to understand the bases of financial analysis in the upstream Oil & Gas activities.

Level : Proficiency

Course Content

  • Module 1 - FUNDAMENTALS OF OIL & GAS ACCOUNTING & COSTS CONTROL METHODOLOGY

  • E&P fundamentals

      • Overview.
  • Accounting standards

      • 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

      • 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

      • 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

      • 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.

Learning Objectives

  • 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.

Ways & Means

  • Case studies and exercises.