chapter 5: field study in petroleum companies in...

142

CHAPTER 5:

FIELD STUDY IN PETROLEUM COMPANIES IN YEMEN

The reputed home of the Queen of Sheba, Yemen has been at the crossroads of Africa, the Middle East

and Asia for thousands of years thanks to its key position on the ancient spice routes. The Romans knew

this fertile and wealthy country as Arabia Felix, in contrast to the relatively barren Arabia Desert to the

north. And today it maintains its own distinct character. 1

5.1. BACKGROUND ABOUT YEMEN:

The modern Republic of Yemen came into being in 1990 when traditionalist North

Yemen and Marxist South Yemen merged after years of border wars and skirmishes.

But the peace broke down in 1994. A brief civil war ended in defeat for separatist

southerners and the survival of the unified Yemen2.

Since unification, the country has been modernizing and opening up to the outside

world, but Yemen still maintains much of its tribal character and old ways, people wear

traditional dress and the country has attracted the curiosity of a growing number of

tourists.

5.1.1. Location and Size:

The republic of Yemen lies at the southeast tip of the Arabian Peninsula; total land

area is about 555,000sq.km. Yemen is bordered by Kingdom of Saudi Arabia in the

north, the Arabian Sea and Indian Ocean in the south, the red sea in the west and Oman

in the east3. Socotra is the largest and most important Yemeni island; it and its

subsidiary islands are located in the Arabian Sea. A large number of islands are also

1BBC News. www.bbc.co.uk.

2Ibid.

3Republic of Yemen, “10 Years of Achievements” Ministry of Planning and development.1990-2000,

p.18.

143

located in the Red sea. The largest and most important of these is Kamaran Island and

Perim Island (Maiyoon)4. In addition, Yemen population in 2004 estimated 20 million

5.

The following map illustrates the Yemeni boarders.

Map No.5.1 illustrates Yemen boards

http//www.gulfstatesnews.com

5.1.2. Geology of Yemen:

Geologically , Yemen is an integral part of the Arabian - Nubian shield which is

composed of metavolcanic and plutonic rocks . The shield is considered to have been

formed by a process of microplate build-up during the Proterozoic period. The various

terrains boarder one another along linear Suture zones representing the edge of the

microplates. The youngest and the most prominent zone is known as the Nabitah

426 September.Op.Cit. p.7.

5For more detail about Yemen see: www.ameinfo.com & www.gulfoilandgas.com

http://www.ameinfo.com/

http://www.gulfoilandgas.com/

144

Suture, which probably formed by the collision of two crystals plates during the

proterozoic era .6

5.1.3. Politics:

The republic of Yemen, established by the merger o f the two Yemens on 22 of May

1990, Yemen is a parliamentary democracy; its constitution defines it as an

independent, Islamic, Arabic state legislation based on the Islamic Religion (Sharia’a) 7.

5.1.4. Economy:

Yemen is still a predominantly agriculture – oriented country, most agriculture is

based on subsistence farming using traditional methods.

The oil earnings (comprising about 70% of total government income) are forecast to

rise by only 8%. Non-oil income (excluding foreign grants) is projected to increase by

around 15% as the government makes its tax administration more efficient8. The main

exports: Oil, refined petroleum products, fish, coffee, fruits and vegetables, leather,

cotton thread, tobacco, and honey9.

6Mohammed, Abdullah. Hamoud “The Budget As A Control Tool On Petroleum Exploration &

Production Companies In Yemen” Master of Commerce Thesis, University of PUNE, 2005, Pp.72-73. 7Unicef guide “Welcome To Yemen” Yemen, 3rd edition 1995, P.18.

8Country Report, August The Economist Intelligence Unit, 2004 , www.eiu.com

9Unicef guide .Op.Cit. P.22.

145

5.2. PETROLEUM COMPANIES PROFILE IN YEMEN:

The researcher divided the stages of the petroleum companies’ existing in Yemen to

two stages, the first stage starts from the 1931-1970, and second stage starts from 1971-

2000.

5.2.1. The Existence of the Petroleum Companies in Yemen between

1931-1970:

Yemen had entered the searching and exploring field about petrol very late, it still

new in this field and is entering the petrol wealth door.

Yemen until 50s decade was stayed away from the petroleum concessions arena, or

any petroleum exploring activities. The actual searching and exploring process started

only after many years of the revaluation in 26 of September 1962, and the elimination

of the British occupation in 31 of November 1967, i.e. in the half of 70s decade, while

in another parts of Arabian Peninsula the petrol discoveries had started before that by

around 40 years.

The first exist of the petroleum companies was in 1931, when arrived to Yemen the

first American company’s mission from the Standard Oil Company, and had not any

positive results for exploring the petrol 10

.

The beginnings of the petrol in Yemen retraced to the 1937 – 1938, when the

British Petroleum Concessions Limited Company, a branch of Iraq Petroleum

Company, which was granted from British imperator in Aden the right to explore the

petrol at the east and west regions, and started the exploring between the 1938 -1939,

10

Barakat, Ahmed Qaied "The Oil in Yemen" Establishment of Alafief Althaqafia ,Sana'a, 1991, P. 46.

146

and suspended its activities till 1945 because of the Second World War, returned to

explore in 1949-1959, and leaved the country without declaring any results11

.

In 1952, constructed Aden refinery and completed in 1954 with a refining capacity

nearly 170,000 barrels/day, i.e. 8.5 million metric tons per year. In 1977 the refinery

reverted to state ownership, which was formerly owned to the British BP company.

Despite its old age, it is still working with an appropriate amount of competence owing

the former and current maintenance works and modernization. At present refining of

the crude oil for the local market around 80,000 barrels/day.12

In April 1953, Yemen’s government signed a petroleum production sharing with

West German Company C.Dellmnn Bergbau, the contract covered all Yemen area, and

the first stage should be started at Tihama region.

The West German Company abandoned the area according to the contract conditions

without declaring any positive results13

.

In 1959, American Overseas Investment Corporation had the concession rights at the

west region of north of Yemen previously; the company didn't accomplish any activities

or works.

In 1961, American Company signed an agreement at Tihama region. In the same

period at Hadhramout the British Iraq’s Petroleum Company implemented many of

exploring activities, and followed by the American company PAN AM.14

’15

.

11

Atef,Mahmoud Ali " The oil in Yemen, Study in the Geographic Energy" Dar Althqafa Alarabia,

Alsharja,UAE, ed1,2002 P.78. 12

Mohammed, Abdullah. Hamoud. Op.Cit. Pp.81-82. 13

Hanz, Holferten" Yemen from the Back Door" Translated to Arabic language by: Kaeree Hamad, Dar

Alawda Birout, 1985, Pp.156-157. 14

Barakat, Ahmed Qaied .Op.Cit.Pp.41- 42. 15

26 Septemeber.Op.Cit. p.7.

147

In 1961, at the eastern and southern regions, Pan American Oil Company was granted

the right to explore the petrol from the British imperator in Aden, and bought the

available information about the fields at Hadhramout from British’s Iraq Petroleum that

had left the field in 1960. Pan American Oil Company started the drilling, but has not

got petrol and left the field because of the national revolution war against the British

occupied16

.

In 1961, MECOM American Company was granted the concession rights at the

northern field of Tihama region and the company started the drillings but did not get

any positive results and had left the field in 196317

.

Between 1969 – 1970 two agreements were signed to explore the petrol with the

Algeria government at Aden and Sana’a, and established two Yemeni – Algerian

companies named Syapco Company at Aden and Sonatrach Company at Sana’a.

The two companies activities enclosed only in some geophysics surveys at north of

Tihama and north of Hadhramout. Sypaco Company achieved some drillings in the

exploring oil wells at north of Hadhramout that had got cooperation of the Cuba

government18

. The table No 5.1 Shows the existing dates of the petroleum companies in

Yemen in the first stage.

16

Atef,Mahmoud Ali .Op.Cit. P.14. 17

Qaied, Ali Abdullah" Develop the Self Resources of the Foreign Money in Yemen, and the Oil Role in

Yemen in the Present and Future" PH.D Thesis, Alaskandaria Univeristy, 1999, P.221. 18

Barakat, Ahmed Qaied .Op.Cit.P .35

148

Table No 5.1 Illustrates the Petroleum Companies Existing between 1931-1970

Company Nationality Contract

Year

Abandonment

Year

Concession Field

Standard Oil Company USA 1931

Iraq Petroleum British 1937 1960 Al-Mahara&Hadhramout

Dellmnn Germany 1953 1960 Tihama

American oversea USA 1959 West area of north of Yemen

Mecom USA 1961 1963 North of Tihama

Pan American Oil USA 1961 Hadhramout

Syapco Algiaria 1969 North Hadhramout

Sonatrach Algeria 1970 North of Tihama

Designed by researcher

5.2.2. The Existence of the Petroleum Companies in Yemen between

1971-2000:

The 70s decade was the beginning of the favorable indications of the politically and

security peace in Yemen.

On 16 of January 1974, Yemen government signed an agreement for petroleum

exploring with Dutsche Shell Company, according to that contract the company was

granted the right to search in the shore of Red Sea Region .The company abandoned the

field in 1977 19

.

In February 1974, it arrived to the contract between Yemen government (Northern of

Yemen previously) with both of the American company Santa fee, and Japanese

company Toyo Menkaisha Ltd.

The two companies established a compound company for exploring the petrol at the

Red Sea area, actually the born company didn't work in a specific way, and maybe the

19

Albahr, Ali Abdulrahman "Explore the Petrol and its Future Reflects in the Economy of Yemen Arab

Republic" PH.D Thesis, Cairo University,1990, P.111.

149

implicit purpose was to prepare the surveys and studies about the area and sells its

rights in the concession at that area20

.

In 1975, Canadian company saypeanse was granted a concession contract at south of

Socatra field, and left the concession field in 1985 21

.

In addition, in 1976 Techno Export Company P.E.D started its work for exploring the

petrol, and discovered the commercial petroleum quantities in 1987 at Shabowa,

because of the technical difficulties, the company abandoned the region in 199022

.

In 1976, established the Petroleum Exploring Division at the Southern of Yemen

previously, and signed contract to implement geophysical and geological survey with

France Company CGG at Shabwa, Hadhramout and Al-Mahara Governorates for the

period from 1977-1980.

In 1977, signed contract for petroleum concession with Italian Company (Agip) at

Hadhramout, and discovered the petrol in a commercial quantities in 1982, the company

left for political reasons in 1986 23

.

In July 1977, Yemen government signed contract for petroleum exploring with Shell

Company in the offshore field24

.

Many contracts were signed with many companies for exploring the petrol at the

governorates mentioned before, because the drilling results indicated the existing of

petrol at Shabwa and Hadhramout25

.

20

Albahr, Ali Abdulrahman.Op.Cit P.110. 21


Qaied, Ali Abdullah.Op.Cit. P.221. 23


Albahr, Ali Abdulrahman .Op.Cit. P.111. 25

Qaied, Ali Abdullah . Op.Cit. P.223.

150

In the late 70s decade, in January 1978, established the General Corporation for

Minerals and Petroleum, which assigned to achieve the works relating to the exploring

and searching about the minerals and petroleum wealth, through the works

accomplished by the contracts with specialist companies.

One of the important contracts was the surveys and some geological and geophysical

works (Gravity & Magnetic), which the General Corporation for Minerals and

Petroleum contracted with the France Company CGG to implement surveys and some

geological and geophysical works (Gravity & Magnetic) at the (Marib-Aljawf) region,

which had the critical role for exploring the petroleum in the region.26

’27

The results of

that survives, many companies bided to get the concessions at that region, in 1981 Hunt

American Company won to sign the petroleum production sharing with the Yemeni

government.28

The drilling started at the first oil well named (Alif field) on 31 of

January 1984, on 4 of March in the same year, explored the commercial petroleum

quantities at the first exploration oil well in Yemen.

In 1982, signed agreement for searching and exploring the petrol with Brazilian

company BrazPetro at Al-Mahara , the company abandoned from the concession field

in 1985 because the partners unwanted to continue the work29

.

In 1983, singed sharing agreement with Kuwait Independent Petroleum group30

. In

the same year 1984, the British Petroleum Company signed the concession rights to

explore at the north part of Tihama region, because of the rarity of the company

financial resources, abandoned the region, and came again in September 1990 requested

26

Hamalainen, pertti “Yemen” Lonely planet publications pty ltd. Australia, 4th

Ed, 1999. P39. 27

Barakat, Ahmed Qaied . Op.Cit. P .35 28

Hamalainen, pertti .Op.Cit. p39. 29

Atef,Mahmoud Ali . Op.Cit. P.108. 30

Ibid. P.109.

151

concession in the same region31

. And in north of Yemen signed many petroleum sharing

agreements with many of companies: In 1983 with P.B, in 1984 with Hunt offshore, in

1985 with EXXON, in 1985 with Total32

.

On 12 of April 1986 officially opened the refinery with production capacity 10000

daily barrels. The Yemeni petroleum company is the supervisor and organized the

transferring and locally marketing33

.

In 1986, France Company Total had concession for exploring at South of Tihama

region, according to sharing contract with Yemeni government. In the same year, the

government signed contract with American company EXXON for exploring the petrol

at the Middle region between Damar and north of Sana’a34

.

The result of the symposium at London in 1987 for promotion of the petroleum

possibilities regions, signed many of the petroleum production sharing with some

companies as: Canadian Occi off Shore, for exploring at Hadhramout and Al- Mahara

regions, C.C.C. for exploring at Hadhramout and Al- Mahara regions, Total Company

also at the same year, i.e. 1987 had granted permit to explore in the eastern part of

Shabwah region35

.

Until the early 1980s, the Yemens were considered an oddity because they were on

the Arabian Peninsula but had no oil36

. In 1989 was established Yemen Company for

Investment in Oil and Minerals (YICOM) that was the first national company to work in

31

Barakat, Ahmed Qaied . Op.Cit. P .35 32

Albahr, Ali Abdulrahman .Op.Cit. Pp113-118. 33

For more details see:

Thabet,Abdulrakeeb Saeed; Ali ,Faisel Abdo " The Oil Refinery Industry and its Environment affects in

Aden Governorate" Magazine of Geographical Association Issue 2,2003,Pp.166-182. 34

Barakat, Ahmed Qaied .Op.Cit.P .38 35

Atef,Mahmoud Ali .Op.Cit.109. 36

Hamalainen, pertti. Op.Cit. p38.

152

the petroleum filed.37

The table No 5.2 shows the existing dates of the petroleum

companies in Yemen for the period between 1971-1989.

Table No 5.2 Illustrates the Petroleum Companies Existing between 1971-1989

Company Nationality Contract

Year

Abandonment

Year

Concession Field

Santafee/Toman USA/Japan 1974 Red Sea

Shell Holland 1974 1977 Red Sea

Saypeanse Canadian 1975 1985 South of Sqatra

Technoexport Soviet/

Russian

1976 1990 Shabowah

Agip Italian 1977 1986 Hadhramout

Hunt USA 1981 2005 Marib/Safer

Petrobraz Brazilian 1982 1985 Al-Mahara

Kuwait petroleum

group

1983

B.P British 1983 North of Yemen

previously

Hunt shore USA 1984 North of Yemen

previously Exxon USA 1985 North of Yemen

previously Total France 1985 North of Yemen

previously Candian Occi

offshore

Canadian 1987 Hadhramout

C.C.C Greece/

Lebnon

1987 Al-Mahara

Total France 1987 Shabowah/South of

Yemen previously

Alif France 1987 Dalta-Aden

YICOM Yemen 1989

Designed by researcher

The unification of the two Yemens in 1990 has facilitated the exploration and

exploitation of oil and gas reserves in the former border region. In 1998, the oil

industry accounted for almost 40% of the economy. Till now Yemen remains a minor

player38

. The table No5.3 shows the companies that have signed a production sharing

agreement with the Yemeni government for the period 1990- 2000:

37

26 Septemeber. Op.Cit. p.46 38

Hamalainen, pertti .Op.Cit. p39.

153

Table No 5.3 Illustrates the Petroleum Companies Existing between 1990-1999.

Company Nationality

NIMIR Saudi Reg.in UK

AGIP Italian

DNO Norwegian

MAYFAIR Indonesian

KERR MCGEE American

CALVALLEY Canadian

DOVE British

MOL Hungarian

PREUSSAGE German

VINTAGE American

OCEAN ENERGY American

OIL AND GAS British

CAN.PET.YEMEN Canadian

Source: Ministry of Planning and Development “Republic of Yemen: 10 Years of Achievements 1990-

2000” p.205.

The Yemeni oil production according to the last issue of the Republic of Yemen

ministry of oil and minerals in the year 2004 is 147,495,009 barrels; and the daily

production average is 402,992 barrels39

. The exporting quantity from Yemeni

government to abroad ranked as: China 17,788,585 barrels, Thailand 23,880,036

barrels, India 12,482,586 barrels, Singapore 442,000 barrels, USA 42,000 barrels, and

Netherlands 1,310,302 barrels40

.

39

Ministry of Oil and Minerals .Op.Cit. p.19. 40

Ibid. p.32.

154

5.3. THE STUDY ANALYSIS:

Here is a discussion of the data collected from the questionnaires, interviews and

observations. This section should provide a bridge for the reader to chapter 6, which

offers the conclusions and recommendations of this study.

Moreover, the interviews and observations addressed to the specialists in both the

Yemeni Ministry of Oil and the Tax Authority. This study is designed to use direct

questionnaires as a main method to collect data about the applying of advance and

modern accounting information systems. A questionnaire provides the most appropriate

method to obtain relevant, up-to-date information from a large sample of petroleum

companies.

Questionnaire participants are asked to rank the performance of various aspects of

their accounting information systems. And a lot of people mentioned in the

acknowledgment were professors and professionals who had reviewed the questionnaire

in details and numerous changes were made to the wording of the questions, the format

of the questionnaire, the questions, the alignment and placement of the text, and the

sequential order of the individual questions. The final version of the questionnaire is 2

pages that every questionnaire contains 23 questions, which take approximately 10

minutes to complete. The questionnaire is divided into 2 parts:

Part I: consists of 7 mostly multiple-choice questions that describe the participation’s

demographics and characteristics of the companies.

Part 2: consists of 16 questions that enquire different forms about the applied

accounting information systems in those companies. The researcher has collected the

required data to test the research hypotheses by distributing questionnaires as the main

155

method to collect the data, interviews and observations during the period from February

2006 – June 2006.

The researcher personally distributed the questionnaires for this study to study

sample of the petroleum companies involved in upstream and downstream activities; the

questionnaire packet included two items:

1. A cover letter issued from Ministry of Oil and Minerals to every petroleum company

manager for introducing the purpose of questionnaire and requesting from Petroleum

Company to fill the questionnaire by the concerned employees in the company

[Specimen of Ministry of Oil letter.See Appendix B],

2. The stapled, 2 pages of “Questionnaire of Accounting Information Systems and its

application in petroleum companies in Yemen”. (Specimen of questionnaire. See

Appendix A), all of those were stuffed in a large, brown Kraft envelope.

The researcher target was to visit all companies engaged in direct performance in the

petroleum fields i.e. upstream and downstream, because of the reasons said in the

limitation of this study the researcher has limited the study sample to 19 companies out

of 24 currently working in Yemen as a study sample.

The sample selected of the petroleum companies was selected according to the last

issue of the Ministry of Oil and Minerals in Yemen. The list contains 24 companies as

shows in the table No5.4 are working in the fields of the Yemeni petroleum, 7 of the

companies are government companies41

, as said above the researcher had visited 19

petroleum companies. The questionnaire was targeted for individuals involved with the

41

Calculated from the Ministry of Oil and Minerals issue “Oil, Gas and Minerals Statistics” Annual

Bulletin issue 2004, Pp.13-15 , and p.78

156

accounting and financial departments of petroleum companies in Yemen. The major

jobs of respondents were accountants, accounts directors and internal checkers.

In the opinion of the researcher, the respondents of the study sample fully represented

the study population i.e. the sample covered 79% of the petroleum companies currently

working in Yemen.

The Table No 5.4 illustrates the companies working currently in the petroleum fields,

i.e. upstream (Exploring and Production )and downstream (Marketing and Refinery)

according to the last issue of the Oil, Gas, and Minerals Statistics, Annual Bulletin

(Issue No.4) 2004, issued from Ministry of Oil and Minerals in Yemen.

Table No 5.4 Illustrates the Petroleum Companies Currently Working in Yemen

No. Company Activity Nationality 1 Safer (previous named Hunt) Production Yemeni

2 Canadian Nexen Production Canadian

3 Jannah Hunt Production USA

4 YICOM Production Yemeni

5 Total Production France

6 Dove Production British

7 DNO Production Norwegian

8 Vintage Production USA

9 Preussag Production German

10 Calvalley Exploration Canadian

11 Oil Search Exploration Australian

12 C.C.C Exploration Lebanese

13 Gallow Oil Exploration Indonesian

14 Mayfair Exploration British

15 Oil, Gas & Minerals Exploration Saudi

16 Occidental Exploration USA

17 MOL Exploration Hungarian

18 OMV Exploration Australian

19 Petronas Exploration Malaysian

20 Aden Refinery Company Refining Yemeni

21 Yemen Company for Oil Refining Refining Yemeni

22 Yemen Company for Gas Nationally Marketing

of the Gas

Yemeni

23 Oil Products Disproportion Company Nationally Marketing

of the Oil

Yemeni

24 General Yemeni Corporation for Oil and

Gas

Abroad Gas & Oil

Marketing

Yemeni

Source: Calculated from the Ministry of Oil and Minerals issue “Oil, Gas and Minerals Statistics”

Annual Bulletin issue, 2004, Pp.13-15, and p.78.

157

A total of 80 questionnaire packets were distributed, the questionnaires addressed to

the accountants, accounts directors and internal checkers in petroleum companies which

asked for answering about accounting information system applied in those companies.

The completed questionnaires responses were received steadily during 3 months.

Of the 88 questionnaires distributed, 63 questionnaires were returned, abandoned 5

questionnaires because of the applying manual accounting system and usable only 58

questionnaires (the computerized, and manual & computerized) representing an

unusually high response rate. As it is shown in the table No 5.5 and figure No 5.1, the

researcher had calculated the respondents’ percentage of (Computerized & Manual

Accounting system and Computerized) which was around 73%. The respondents

percentage was high, because the researcher was exerted all his efforts and time to

contact the respondents. The majority of the Questionable participants were contacted

directly to determine their viability for the study.

Table No.5.5 Illustrates the Respondents According to the Accounting Systems

Types

Accounting system types No. Of Respondents Percent

Computerized & Manual 10 13%

Computerized 48 60%

Manual 5 6%

Unreturned 17 21%

Total 80 100%

Figure No 5.1 Illustrates the Respondents According to the Accounting Systems

Types

0%

20%

40%

60%

Computerized & Manual

Computerized

Manual

Unreturned

158

5.3.1. Respondent’s Demographics and Companies Characteristics:

This paragraph covers the most important demographics and characteristics of the

study sample. As it is shown in the following table No 5.6 and figure No 5.2, the

upstream companies are 55% while the downstream companies are 45 %.

Table No 5.6 Illustrates the Companies Activities

Company Activity No. Of Respondents Percent

Downstream Activities 26 45%

Upstream Activities 32 55%

Total 58 100%

Figure No 5.2 Illustrates the Companies Activities

0%

10%

20%

30%

40%

50%

60%

Downstream Activities

Upstream Activities

According to the sectors of the petroleum companies, as it is shown in the following

table No 5.7 and figure No 5.3 the Private sector is 57 %, while the Public sector is 43

%, the high percentage of the private sector responses, because most petroleum

companies are private sector and foreign companies.

Table No 5.7 Illustrates the Companies Sector

Sector No. Of Respondents Percent

Private Sector 33 57%

Public Sector 25 43%

Total 58 100%

159

Figure No 5.3 Illustrates the Companies Sector

0%

20%

40%

60%

Private Sector

Public Sector

The questionnaires delivered to the staff engaged in finance departments, which it is

shown in the following table No 5.8 and figure No 5.4 consists of Accounts Department

Directors, Accountants and Internal Checkers.

The accountants’ response is 72 %, accounts directors are 14 %, and the internal

checkers are 14 %. The accountants’ responses consider high percentage comprised to

the rest of sample.

In the opinion of the researcher, regarding the high responses of the accountants

returned to two reasons, firstly; the accountants employees numbers more than directors

or internal checkers numbers, and secondly; is that the directors and internal checkers

were busy in the checking and preparing the final accounts statements for the last

financial year 2005, because those questionnaires had delivered in the beginning of the

financial year 2006.

Table No 5.8 Illustrates the Jobs Types

Job No. Of Respondents Percent

Accountants 42 72%

Accounts Director 8 14%

Internal Checker 8 14%

Total 58 100%

160

Figure No 5.4 Illustrates the Jobs Types

0%

20%

40%

60%

80%

Accountants

Accounts Director

Internal Checker

The following table No 5.9 and figure No5.5 show the majority of participation ages,

between 25-45 is 77%.

In the opinion of the researcher, the characters of this stage of ages are youth and

mature, this reflected the high responses of those questionnaires, which the stage of this

ages is the readiness to learn, train and more interesting to accompany the advances and

information technology.

Table No.5.9 Illustrates the Respondents Ages

Age No. Of Respondents Percent

20-25 Years 8 14%

25-45 Years 45 77%

More Than 45 Years 5 9%

Total 58 100%

161

Figure No 5.5 Illustrates Respondents Ages

0%

20%

40%

60%

80%

20-25 Years

25-45 Years

More Than 45 Years

The following table No 5.10 and figure No 5.6 show the majority of the participations

have a bachelor degree.

In the opinion of the researcher, the high percentage of the bachelor degree holders of

employees is because the majority of bachelor degrees are accountants.

As I explained previously the accountants were 72% of the participations and the less

participation were from the postgraduate degrees holders.

In the opinion of the researcher, the petroleum companies do not prefer, who has high

qualification, for the salaries reasons, and they named overqualified, generally the

companies prefer the bachelor degree holders for employment.

Table 5.10 Illustrates the Respondents Qualifications

Qualification No. Of Respondents Percent

Bachelor 44 76%

Diploma 8 14%

Post Graduate 6 10%

Total 58 100%

162

Figure No 5.6 Illustrates the Respondents Qualifications

0%

20%

40%

60%

80%

Bachelor

Diploma

Post Graduate

The followings table No 5.11 and figure No 5.7 show the high percentage of the

respondents have experience more than 6 years is 62%.

This increased the researcher confidence about the answers of the questionnaires; it is

advantage adding to his study, i.e. the questionnaires answers have neutrality and

objectivity based on the long period of respondents experience and knowledge.

Table No 5.11 Illustrates Respondents Experience Years

Experience Years No. Of Respondents Percent

3-6 Years 14 24%

Less than 3 Years 8 14%

More Than 6 Years 36 62%

Total 58 100%

Figure No 5.7 Illustrates Respondents Experience Years

0%

20%

40%

60%

80%

3-6 Years

Less than 3 Years

More Than 6 Years

163

5.3.2. Hypotheses Test:

5.3.2.1. H1:

For testing the first hypothesis (The petroleum companies apply modern systems

in their accounting information systems) the researcher addressed six questions in the

second part of questionnaire. (See appendix A)

The Q 1 about applying ERP systems in respondent’s companies, where ERP systems

represent totalizing technological applications, at the same time ERP software is

becoming increasingly standardized, it is also becoming more pervasive. ERP systems

are viewed as objective responses to technological conditions and economic

competition. As the forces toward ERP adoption and further standardization across

industries and supply chains marches forward, changes in the everyday lives of those

affected by these systems become more pervasive and profound, which the researcher

has mentioned ERP advantages in chapter 3. The respondents answered of Q1 were

14% of them apply ERP systems in the petroleum companies in Yemen, see the table

No 5.12 and figure No5.8.

Table No 5.12 Illustrates Companies Applied ERP

Yes 8 14%

No 50 86%

Total 58 100%

Figure No 5.8 Illustrates Companies Applied ERP

0%

20%

40%

60%

80%

100%

Yes

No

164

The Q2, about applying Case – Based Reasoning systems (CBR) as (Artificial

Intelligence; Expert Systems and Neural Network) which those systems use in

accounting and auditing , which have been developed to perform accounting and

auditing judgments. Auditor analyzes a client’s allowance for bad debts. Tax advisor

does individual estate tax planning. Internal control analyzer evaluates the quality of

internal controls in the revenue cycle, as the researcher has mentioned CBR types and

uses in chapter 3. Only 14% apply that systems according to the respondents answers as

it is shown in the table No 5.13 and figure No 5.9

Table No 5.13 Illustrates the Companies Applied CBR

Yes 8 14%

No 50 86%

Total 58 100%

Figure No 5.9 Illustrates the Companies Applied CBR

0%

20%

40%

60%

80%

100%

Yes

No

The researcher has mentioned in chapter 2, the Accounting information system (AIS)

apart from wide functions of Management Information System (MIS), the researcher

has addressed the Q3, about applying Decision Support Systems (DSS) which basically

used in MIS, which the respondents were only 21% of the petroleum companies apply

the DSS as it is shown in table No 5.14 and figure No 5.10

165

Table No 5.14 Illustrates the Companies Applied DSS

Yes 12 21%

No 46 79%

Total 58 100%

Figure No 5.10 Illustrates the Companies Applied DSS

0%

20%

40%

60%

80%

Yes

No

For knowing the accounting package types applied, the researcher has addressed

opened question for that purpose, which the respondents were 47% apply different

accounting packages, 19% apply Systems, Applications and Product (SAP) and 34%

apply YementSoft package. As it is shown in the table No 5.15 and figure No 5.11

Table No 5.15 Illustrates the Accounting Packages Applied

Accounting Packages No. Of Responses Percent

Different Accounting Packages 27 47%

Systems, Applications and Product (SAP) 11 19%

YemenSoft 20 34%

Total 58 100%

166

Figure No 5.11 Illustrates the Accounting Packages Applied

0%

10%

20%

30%

40%

50%

Different AccountingPackages

Systems, Applications andProduct (SAP)

YemenSoft

The percentages of applying both of ERP and SAP are approximate. Applying ERP

is14% as it is shown in table No 5.12 and figure No 5.8, and SAP is 19% as it is shown

in table No 5.15 and figure No5.11, which the companies applied SAP Software

considered applied ERP systems.

Nevertheless, a high percentage of responses answered about unrepeated failure in

their current accounting information system, which is 16% of respondents answered in

repeated failure, but in the opinion of the researcher, this is a high percentage that

should never happen any repetitive failure in the companies accounting systems. See

table No 5.16 and figure No 5.12

Table No 5.16 Illustrates Accounting System Repetitive Failure

Yes 9 16%

No 49 84%

Total 58 100%

167

Figure No 5.12 Illustrates Accounting System Repetitive Failure

0%

20%

40%

60%

80%

100%

Yes

No

The final question for testing the first hypothesis was that if the companies have plans

to develop their current accounting system, as it is shown in the table No 5.17 and

figure No 5.13, which 53% of the companies have plans to improve the current

accounting systems, on the other hand, 47% don't have plans to improve and modernize

their current accounting information systems.

Table No 5.17 Illustrates the Companies Plans to Develop the Current AIS

Yes 31 53%

No 27 47%

Total 58 100%

Figure No 5.13 Illustrates the Companies Plans to Develop the Current AIS

44%

46%

48%

50%

52%

54%

Yes

No

168

For hypotheses examination, the researcher used the mean as statistical method,

which basically depended on the ratios. If the hypothesis mean ratio was 50% and

above, it is accepted hypothesis, and if the hypothesis mean ratio was less than 50%, it

is refused hypothesis.

For testing the first hypothesis in this study the researcher has calculated the table No

5.18 through the respondents answers in the six questions which have been addressed to

the respondents to get the answers mean as a statistical method.

Table No 5.18 Illustrates the Testing of the First Hypothesis

Q

No.

Yes No Total

Respondents

Percentage Respondents


Percentage

8 8 14% 50 86% 58 100%

9 8 14% 50 86% 58 100%

10 12 21% 46 79% 58 100%

*11 11 19% 47 81% 58 100%

*12 49 84% 9 16% 58 100%

13 31 53% 27 47% 58 100%

Mean 119 34% 229 66% 348 100%

*11: Calculated by taken 19% (SAP) in favorite of the first hypothesis and calculated the rest percentages

47%+34% in opposite side of first hypothesis see table No 5.15

*12: Calculated by taken 84% (Unrepeated failure of AIS) in favorite of the first hypothesis, see table No

5.16

As it is noticed in the above table No 5.18 which is calculated the respondents, whom

their answers were (Yes), is 119, and the total respondents 348 in the six questions.

To get the mean of the six questions, their answers (Yes) should be divided by the

total respondents as follow:

Mean= No. Of (Yes) respondents answers / Total Respondents

Mean = 119 / 348 = 34%

And to get the mean of respondents of answers (No) of the six questions, their

answers should be divided by the total respondents as follow:

169

Mean= No. Of (No) respondents answers / Total Respondents

Mean = 229 / 348 = 66%

As it is seen in the table No5.18 and as it is seen in the mean calculating method, the

first hypothesis has been refused, because the percentage of the respondents answered

by (Yes) only 34%, this indicates unapplied modern technology in accounting

information systems by petroleum companies in Yemen. The above result can assure

that the interviews have addressed by the researcher with some principals of the

Ministry of Oil and Minerals in Yemen, who indicated that there is no existence of any

role of the Ministry in selecting or mandatory the accounting systems or accounting

package applied in the petroleum companies, and the researcher has read some of the

petroleum sharing agreements between Ministry of Oil and some petroleum companies

who hadn't found any clear paragraph directing the petroleum companies to apply any

accounting system or accounting package , which the accounting system or accounting

package objected to the petroleum company selection.

170

5.3.2.2:H2

For testing the second hypothesis (The petroleum companies have skilled

employees to run its modern accounting information systems) the researcher has

addressed one question which consists of five sub-questions in the second part of the

questionnaire, the question No. 14 was about the training programs and courses related

to Accounting Information Systems (AIS) has taken by respondents in petroleum

companies. (See the Appendix A)

The first sub-question, about accounting courses in electronic environment as

(courses in ERP or SAP) has taken by respondents, in which the respondents answers

were only 12% has taken such as that courses as it is shown in table No 5.19 and figure

No 5.14.

Table No. 5.19 Illustrates the Accounting Courses in Electronic Environment

Yes 7 12%

No 51 88%

Total 58 100%

Figure No 5.14 Illustrates the Accounting Courses in Electronic Environment

0%

20%

40%

60%

80%

100%

Yes

No

171

The second sub-question addressed to respondents about training courses in database,

in which the respondents answers were only 19% has taken such as that courses as it is

shown in table No 5.20 and figure No 5.15.

Table No 5.20 Illustrates the Database Courses

Yes 11 19%

No 47 81%

Total 58 100%

Figure No 5.15 Illustrates the Database Courses

0%

20%

40%

60%

80%

100%

Yes

No

The third sub-question addressed to respondents about training courses in Accounting

Information System security, in which the respondents answers were only 16% has

taken such as that courses as it is shown in table No5.21 and figure No 5.16

Table No 5.21 Illustrates the AIS Security Courses

Yes 9 16%

No 49 84%

Total 58 100%

172

Figure No 5.16 Illustrates the AIS Security Courses

0%

20%

40%

60%

80%

100%

Yes

No

The fourth sub-question addressed to respondents about training courses in auditing

in electronic environment, in which the respondents answers were only 7 % has taken

such as that courses as it is shown in table No 5.22 and figure No 5.17

Table No 5.22 Illustrates the Auditing Courses in Electronic Environment

Yes 4 7%

No 54 93%

Total 58 100%

Figure No 5.17 Illustrates the Auditing Courses in Electronic Environment

0%

20%

40%

60%

80%

100%

Yes

No

The final sub-question addressed to respondents about training courses in Case-Based

Reasoning (CBR) in which the respondents answers were only 3 % has taken such as

that courses as it is shown in table No 5.23 and figure No 5.18.

173

Table No 5.23 Illustrates the CBR Courses

Yes 2 3%

No 56 97%

Total 58 100%

Figure No 5.18 Illustrates the CBR Courses

0%

20%

40%

60%

80%

100%

Yes

No

174

For testing the second hypothesis in this study the researcher has calculated the table

No 5.24 as following:

Table No 5.24 Illustrates the Testing of the Second Hypothesis

Q No.14

Yes No Total

Respondents



Percentage

Sub Q. 1

Sub Q. 2

Sub Q.3

Sub Q. 4

Sub Q. 5

7

11

9

4

2

12%

19%

16%

7%

3%

51

47

49

54

56

88%

81%

84%

93%

97%

58

58

58

58

58

100%

100%

100%

100%

100%

Mean 33 11% 257 89% 290 100%

As it is noticed in the above table No 5.24 which is calculated the percentage of the

respondents answers by (Yes) 11%, and the total respondents 290 in the five sub-

questions.

To get the mean of the five sub-questions, the researcher has explained the testing

method in the first hypothesis, is the same to the test of the second hypothesis as follow:

Mean= No. Of (Yes) respondents answers / Total Respondents

Mean = 33 / 290 = 11%

To get the mean of respondents whose answers were (No) of the five sub-questions

has explained in the following:

Mean= No. Of (No) respondents answers/ Total Respondents

Mean = 257 / 290 = 89%

As it is seen in the table No 5.24 and as it is seen in the mean calculating method, the

second hypothesis has been refused, because the percentage of the respondents whose

answered by (Yes) only 11%, this indicates the petroleum companies have not enough

175

qualified and skilled employees to run modern and advance accounting information

system, where the current training courses are insufficient.

The above result can be assured by the interviews which have been addressed with

some principals of the Ministry of Oil and Minerals in Yemen, in which their answers

indicated that there is no existence of any role of the ministry in directing the petroleum

companies regarding the training and program courses of the accountants and

managerial staff, while the Ministry only instructs the petroleum companies to offer

internally and abroad training and program courses in connection with the technicians.

176

5.3.2.3. H3:

The researcher has addressed four questions (See Appendix A) to examine the third

hypothesis (The petroleum companies have advance security plans and systems to

protect its accounting information systems of the risks and threats)

The Q15 answers were only 41% of the petroleum companies have Accounting

Information Systems Auditor, on the other hand, 59% of them don’t have any, as it is

shown in the table No 5.25 and figure No 5.19.

Table 5.25 Illustrates the Companies which have AIS Auditor

Yes 24 41%

No 34 59%

Total 58 100%

Figure No 5.19 Illustrates the Companies which have AIS Auditor

0%

20%

40%

60%

Yes

No

The Q16 for testing the third hypothesis was about the existence of the security

policy to protect the AIS in petroleum companies, in which the respondents answered

were 65% of petroleum companies have Security policy and 35% don’t have any, as it

is shown in table No 5.26 and figure No 5.20.

177

Table No 5.26 Illustrates the Companies which have Security Policy

Yes 38 65%

No 20 35%

Total 58 100%

Figure No 5.20 Illustrates the Companies which have Security Policy

0%

20%

40%

60%

80%

Yes

No

In the table No 5.27 and figure No 5.2,1 the respondents answers of Q17 concerning

about Offsite backup of the accounting information system in the petroleum companies,

in which 52% of petroleum companies maintained backup copies in external locations

of the company. The companies in almost maintained of backup copies in external

locations for overcome of the natural disasters.

Table No 5.27 Illustrates the Companies which Keep Offsite Backup

Yes 30 52%

No 28 48%

Total 58 100%

178

Figure No 5.21 Illustrates the Companies which Keep Offsite Backup

46%

48%

50%

52%

Yes

No

The last question for testing the third hypothesis, which includes some of the security

techniques and tools if currently used in petroleum companies, the researcher has

specified those techniques nevertheless the existence of several of another security

techniques because of that techniques some of them are common and the other are

modern techniques.

As it is shown in the table No 5.28 and figure No 5.22, the Passwords and define of

the authorities and responsibilities approximately used by all the petroleum companies

which passwords is considered the oldest electronic security and controlling tools, and

biometric identification only 5%, nevertheless the advantages of the biometric

identification mentioned in chapter 3 is considered the minimized security technical

used.

Table No 5.28 Illustrates the Security Techniques Applied

Alarms 8 13%

Biometric Identification 3 5%

Cameras 34 58%

Encryption 9 16%

Define of the authorities and responsibilities 51 87%

Passwords 58 100%

179

Figure No 5.22 Illustrates the Security Techniques Applied

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Alarms

Biometric

Identification

Cameras

Encryption

Define of the

authorities and

responsibilitiesPasswords

For testing the third hypothesis in this study the researcher has calculated the table No

5.29 as following:

Table No 5.29 Illustrates the Testing of the Third Hypothesis

Q No.

Yes No Total

Respondents



Percentage

15 24 41% 34 59% 58 100%

16 38 65% 20 35% 58 100%

17 30 52% 28 48% 58 100%

*18.Security Tools:

- Alarms

-Biometric

Identification

- Cameras

- Encryption

-Define of the

authorities and

responsibilities

- Passwords

8

3

34

9

51

58

13%

5%

58%

16%

87%

100%

50

55

24

49

7

0

87%

95%

42%

84%

13%

0

58

58

58

58

58

58

100%

100%

100%

100%

100%

100%

Mean 255 49% 267 51% 522 100%

*18: In security tools the researcher used the percentages of respondents who have those tools and being

used, I. e. they signed in the specified space in questionnaire in front of the tool as a positive answers, and

those who didn’t sign in specified space in font of the tool is taken to be a negative answers.

180

As it is noticed in the table No 5.29 which calculated the respondents whose their

answers (Yes) is 255, and the total respondents are 522 in the four questions.

The Mean= No. Of (Yes) respondents answers/ Total Respondents.

Mean = 255 / 522 = 49%.

To get the mean of the respondents whose answers were (No) of the five sub-

questions has explained in the following:

Mean= No. Of (No) respondents answers/ Total Respondents

Mean = 267 / 522 = 51%.

As it is seen in the table No 5.29 and as seen in the mean calculating method, the

third hypothesis has been refused, because the percentage of the respondents who

answered by Yes 49%, which indicated the petroleum companies have not advanced

and modern security techniques to protect their accounting information system from

risks and threats.

181

5.3.2.4. H4:

For testing the fourth hypothesis (The petroleum companies fully practiced the

international accounting standards (AIS)) the researcher has addressed one question

(See appendix A)to know what are the accounting standards applied in petroleum

companies especially with the lack of the accounting standards issued by Yemen

authorities42

.

As it is shown in the table No 5.30 and figure No 5.23 in which the percentages are

approximately same in rates. The fourth hypothesis has been refused, because the

percentage of the International Accounting Standards (IAS) 36%, therefore the Ministry

of Oil in Yemen should direct the petroleum companies to standardize the accounting

standards according to International Accounting Standards (IAS) regarding to the

extractive industries, which observed through the interviews with principals in Ministry

of Oil and Mineral, there is no existence any role of the ministry in this issue but the

accounting standards and accounting systems objected to the company selection.

42

Alseyh, Abdulhameed Manaa" International Accounting Standards, A study of the Extent of Their Use

in, and Relevance to, the Republic of Yemen" PH.D Thesis, Al-Mustansiriyh University,1998, P.12.

182

Table No 5.30 Illustrates the Accounting Standards Applied

General Accounting Accepted Principles 18 31%

Accounting Standards According to the Company Home Country 19 33%

International Accounting Standards (IAS) 21 36%

Total 58 100%

Figure No 5.23 Illustrates the Accounting Standards Applied

28%

30%

32%

34%

36%

General Accounting

Accepted Principles

Accounting

Standards According

to the Company

Home Country

International

Accounting

Standards (IAS)

183

5.3.2.5. H5:

For testing the last hypothesis (The accounting information systems applied in the

petroleum companies meet up the Yemeni environmental requirements ) the

researcher has addressed four questions (See Appendix A) relating to Accounting

Information Systems outputs which are currently applied in the petroleum companies ,

and AIS outputs to meet the Yemeni environment requirements.

The answers were as follow:

The first question directed to the respondents consists of three information

characteristics: Information Quality, Timing, and Accuracy.

The respondents answers related to information quality were as it is shown in the

table No 5.31 and figure No 5.24, in which the information quality was the excellent by

ranking 58%.

Table No 5.31 Illustrates the Information Quality

Bad 5 9%

To Some Extent 19 33%

Excellent 34 58%

Total 58 100%

Figure No 5.24 Illustrates the Information Quality

0%

20%

40%

60%

Bad

To Some Extent

Excellent

184

The respondents opinions about the information timing also was high percentage

55% is excellent, as it is shown in the table No5.32 and figure No 5.25 but the

researcher has addressed interviews with principals of Ministry of Oil and Minerals,

who indicated the delay of the produced reports offered by petroleum companies, in

which means the reports don't offer at the specific and right time.

Table No 5.32 Illustrates the Information Timing

Bad 7 12%


Excellent 32 55%

Total 58 100%

Figure No 5.25 Illustrates the Information Timing

0%

20%

40%

60%

Bad

To Some Extent

Excellent

The answers about the information accuracy occupied the high percentage too, in

which the information accuracy was 53% is excellent as it is shown in the table No5.33

and figure No 5.26.

Table No 5.33 Illustrates the Information Accuracy

Bad 6 10%


Excellent 31 53%

Total 58 100%

185

Figure No 5.26 Illustrates the Information Accuracy

0%

20%

40%

60%

Bad

To Some Extent

Excellent

Although, the high percentages of information characteristics of the respondents

answers of the individuals in petroleum companies , but in the researcher point of view

that percentages appears as a result of this study relating to characteristics of the

information produced by petroleum companies are not sufficient percentages , and

which should reach to standard percentages i. e 100%.

The question 21 which is considered the second question to test the last hypothesis

was that if there is gap between the AIS outputs currently used and the users' needs. The

answers were also at the positive side, in which 65% of the respondents opinions were

no any gap between the AIS outputs and users needs as it is shown in the table No 5.34

and figure No 5.27.

Table No 5.34 Illustrates the Gap between AIS Outputs and AIS Users

Yes 20 35%

No 38 65%

Total 58 100%

186

Figure No 5.27 Illustrates the Gap between AIS Outputs and AIS Users

0%

20%

40%

60%

80%

Yes

No

To know the extent use of the internal and external users of the reports, in which the

petroleum companies are produced. The researcher has addressed a question about the

produced reports languages. The answers were as the table No 5.35 and figure No 5.28,

in which 9% only produce the reports by English language & Arabic language, in which

there should be the higher percentage because those companies working surely in

environment of the Arabic language speaking 100%.

Table No 5.35 Illustrates the Outputs Language

Arabic language 16 27%

English language 37 64%

Arabic & English languages 5 9%

Total 58 100%

Figure No 5.28 Illustrates the Outputs Language

0%

20%

40%

60%

80%

Arabic language

English language

Arabic & Englishlanguages

187

The final question was to test the last hypothesis of this study which was aiming to

know the extent of the petroleum companies obligations about the reports produced of

the social responsibility. That question consists of four sub-questions about the social

responsibilities which should the companies obligate and report about it.

The first one was about the produced reports about the students training programs, in

which the answers were 45% only preparing the reports about that as it is shown in the

table No 5.36 and figure No 5.29.

Table No 5.36 Illustrates the Students Training Reports

No 26 45%


Yes 26 45%

Total 58 100%

Figure No 5.29 Illustrates the Students Training Reports

0%

10%

20%

30%

40%

50%

Yes

To Some Extent

No

The produced reports about the employees training programs, in which only 35% of

the petroleum companies preparing reports about it as it is shown in table No 5.37 and

figure No5.30, which was in the second hypothesis as it is shown in the table No5.24

the training courses and programs was only 11% that the researcher attributed the

188

difference percentages to the technicians training as directed by Ministry of Oil in

Yemen according to the petroleum sharing agreements.

Table No 5.37 Illustrates the Employees Training Reports

No 32 55%


Yes 20 35%

Total 58 100%

Figure No 5.30 Illustrates the Employees Training Reports

0%

20%

40%

60%

Yes

To Some Extent

No

The produced reports about the companies policy to protect the environment, in

which the answers were 53% of respondents said no existence of any reports about the

environment protecting policies as it is shown in table No 5.38 and figure No 5.31, the

companies should do the utmost efforts in this issue, especially for what was explained

in chapter 4, because Yemen is one of the petroleum producing countries in Middle East

and Yemen is one of the Asian countries, in which Petroleum products from Middle

East crude oil is high in sulfur content43

, and Sulphurdioxide emissions in Asia now are

greater than Europe, USA and Canada combined and, by the year 2020, will grow by an

amount equal to nearly the current emissions in Europe, USA and Canada while

emissions in those areas of the world remain unchanged44

.

43

www.cosmo-oil.co.jp/eng/envi/2003/index.htm 44

“Management accounting and global greenhouse gas emissions” Op.Cit.

189

Table No 5.38 Illustrates the Environment Protecting Reports

No 31 53%


Yes 19 33%

Total 58 100%

Figure No 5.31 Illustrates the Environment Protecting Reports

0%

20%

40%

60%

No

To Some Extent

Yes

The produced reports about the different donations, in which the respondents answers

were 45% only reported about the donations as it is shown in the table No 5.39 and

figure No 5.32. Table No 5.39 Illustrates the Donations Reports

No 26 45%


Yes 26 45%

Total 58 100%

Figure No 5.32 Illustrates the Donations Reports

0%

10%

20%

30%

40%

50%

No

To Some Extent

Yes

190

For testing the fifth hypothesis in this study the researcher has calculated the table No 5.40 as following:

Table No 5.40 Illustrates the Testing of the Fifth Hypothesis

Q No.

Excellent To Some Extent Bad Total

Respondents




Percentage

20.Opinions about:

- Reports Quality

- Reports Timing

- Reports Accuracy

34

32

31

58%

55%

53%

19

19

21

33%

33%

37%

5

7

6

9%

12%

10%

58

58

58

100%

100%

100%

*21 38 65% 0 0 20 35% 58 100%

*22 5 9% 16 27% 37 64% 58 100%

23.Social Accounting Reports:

Sub Q.1

Sub Q.2

Sub Q.3

Sub Q.4

26

20

19

26

45%

35%

33%

45%

6

6

8

6

10%

10%

14%

10%

26

32

31

26

45%

55%

53%

45%

58

58

58

58

100%

100%

100%

100%

Total 231 45% 101 19% 190 36% 522 100%

*21: The researcher has taken (No) answers percentage and put them in favorite side of the hypothesis, and (Yes) answers percentage where put them

in the opposite side of the hypothesis.

*22: In this question the researcher has taken the both of English & Arabic languages as standard measure to test the hypothesis, following that Arabic

language and the third is English language as the researcher said previously, that the petroleum companies working in Arabic speaking environment

the reports should be produced in both Arabic and English languages.

191

As it is noticed in the above table No 5.40 in which calculated the respondents whose

answers (Excellent or Yes) is 231, and the total respondents 522 in the four questions.

The Mean= No. Of (Excellent or Yes respondents) answers / Total Respondents

Mean = 231 / 522 = 45%.

And to get the mean of the respondents whose answers were (To some extent) answer

of the four questions has explained in the following:

Mean= No. Of (To some extent respondents) answers / Total Respondents

Mean = 101 / 522 = 19%.

And to get the mean of the respondents whose answers were (Bad or No) answer of

the four questions has explained as the following:

Mean= No. of (Bad or No respondents) / Total Respondents

Mean = 190 / 522 = 36%.

As it is seen in the table No 5.41 and as seen in the mean calculating method, the fifth

hypothesis has been refused, because the percentage of the respondents who answered

by Excellent or Yes 45%, this indicates that the outputs of the accounting information

systems in the petroleum companies don't meet up the Yemeni environment

requirements.

Because of this hypothesis is directly related to the Yemeni environment, the

researcher has achieved some interviews with principles of both of the Ministry of Oil

and Minerals, and the Tax Authority whose answers are indicated to tax evasion

because the petroleum sharing agreements don’t include any paragraph enable the Tax

Authority to play leading role in controlling and checking the income tax of the

petroleum companies, according to some of the sharing agreements between the

192

Ministry of Oil and Minerals and the petroleum companies which the researcher has

read some paragraphs about exemptions of the petroleum companies which indicate the

following:

(The petroleum company's affiliated companies and their contractors and

subcontractors are exempted from all Yemeni Income taxes and all other taxes and

related taxes of any nature whatsoever payable in Yemen who has achieved work or

contracts to the petroleum company.)

In the researcher’s point of view, this is a wasting of Yemeni wealth by wasting taxes

three times by the companies affiliated to the petroleum company and its contractors

and subcontractors. The Tax Authority only received cheques from Ministry of Oil in

substitution for the petroleum companies because only the Ministry of Oil has the right

to estimating, accounting and treating with the petroleum company concerned the taxes.

The researcher also has observed and met some of the accountants in the concerned

department of controlling the petroleum companies (Petroleum Accounting Dept) in

Ministry of Oil and Minerals and he has found skilled employees but there is extreme

deficiency in the employees number at that department to control all financial

processes, procedures and transactions in petroleum companies, especially in the

upcoming days and years which Yemen has the future horizons to sign agreements with

new companies in upstream and downstream activities in petroleum fields.

chapter 5: field study in petroleum companies in...

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