TRAINING PSC BUDGETING, PLANNING AND COST CONTROL

A budgeting process and control is more than a row of numbers. It is a tool for establishing priorities of action, determining program content, and exercising control of operations. This course is designed for those interested in learning how to set up control of cost for each stage of the upstream oil & gas operation activity as an additional working knowledge to support his or her assignment.

Concepts and theory are presented in such a way that will invite participants to be actively involved in the discussions. The presentation of related cases and discussion of current issues are intended to help participants in turning the theory into practical knowledge

• How to construct an oil & gas budget, process and control to maintain the best performance of the company.
• How to develop capital budgets and allocate capital
• Learn about financing alternatives available to oil and gas companies
• How to develop the company’s cost of capital
• What are the various financial issues associated with oil & gas  project development, execution and  operations.

OVERVIEW

• Overview of Business Process of Oil and Gas Industry
• Introduction to PSC and Cost Recovery Mechanism

BUDGET IN OIL & GAS COMPANY

• Capital Expenditures ( Exploratory wells, Development wells, Development Facilities,Facilities,Warehouse stock)
• Operating Expenditures ( Department Cost Centers, Special well repairs,Abandonment & Site restoration, Insurance, Administrative Overhead)

OIL & GAS ACCOUNTING AND FINANCIAL REPORTING OPERATIONS

• Oil & Gas (E& P) and Cost Classification, Ascertainment, & Treatment of Costs
• Accounting Principles & Financial Policies in Relation to Oil &Gas Upstream Operations
• E & P Operations Funding Arrangements & Accounting Implications
• Oil & Gas Revenue Accounting
• Work Program & Budgeting (WP&B)
• Financial Quarthly Report (FQR)
• Authorization for Expenditure (AFE)

BUDGETARY CONTROL

a.      Financial Planning & Budgets

b.     Operated vs. Non-Operated Budgets

c.      Budgets Analysis

d.     Budgetary Control (including variance analysis, project cost control, production cost reporting & control)

• Finance, Accounting & Cost Control Managers
• Planning & Budgeting Engineers / Analysts
• Joint Venture (JV) & Commercial Specialists
• Project Managers & Technical Lead Engineers
• Internal Auditors & Compliance Officers
• Government & Regulatory Compliance Officers