upstream oil and gas accounting contracts oil and gas operation mineral rights leases and successful...

8/10/2019 Upstream Oil and Gas Accounting Contracts Oil and Gas Operation Mineral Rights Leases and Successful Efforts Ac…

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Upstream Oil & Gas Accounting and Contracts: Oil & Gas Operations, Mineral Rights, Leases & Successful Efforts

Accounting – Leading to Diploma–Postgraduate, Accumulating to Postgraduate Diploma, Progressing to MA, MBA, MSc

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Course Co-ordinator:

PPr r oof f .. DDr r .. RR.. BB.. CCr r aawwf f oor r dd – – DDiir r eeccttoor r HHRROODDCC PPoossttggr r aadduuaattee TTr r aaiinniinngg IInnssttiittuuttee

PhD (University of London),

MEd. M. (University of Bath),

Adv. Dip. Ed. (University of Bristol),

PGCIS (Thames Valley University),

ITC (UWI),

Member of the Standing Council of Organisational Symbolism (MSCOS);

Member of the Asian Academy of Management (MAAM);

Member of the International Society of Gesture Studies (MISGS);

Member of the Academy of Management (MAOM);

LESAN;

Professor, HRODC Postgraduate Training Institute;

Visiting Professor, Polytechnic University of the Philippines (PUP).







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For Whom This Course is Designed

This course is designed specifically for all those who work with financial information and

measures of performance for Oil & Gas Exploration & Production (E&P) activities, and

those seeking to enhance their career prospects within the Upstream International

Petroleum - Oil and Gas - Sector. The group of people who will benefit from this course is,

therefore, inclusive of, but not limited to the following:

Asset Accountants;

Chief Accountants;

Chief Executives;

Drilling & Refinery Managers;

Engineers and Geologist;

Finance Directors;

Finance Managers;

Financial Analysts;

Financial Controllers;

Government Ministers,

Government Regulators;

Internal and External Auditors;

Joint Venture Accountants;

Joint Venture Operators;

Land Office Workers;

Land Registrars;

Landsmen;

Legal Personnel in Upstream Oil and Gas Sector;

Management Accountants;

Managing Directors;

Marketing & Sales Directors & Managers;

Public Accountants;

Treasury Officers;







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Upstream Oil and Gas External Auditors;

Upstream Oil and Gas Internal Auditors;

Venture Capitalists;

All others with a genuine interest in Mineral Rights, Surface Rights, Fee Interest,

Lease, Royalties, and the Exploration, Drilling, Testing and the Production of Oil

and Gas.

Duration: 6 Days

Cost: £4,800.00 Per Delegate for UK Delivery

£6,000.00 Per Delegate for Delivery outside the UK

Please Note: V.A.T. (Government Tax) does not apply to Corporate Sponsored Individuals, taking

Programmes or Courses in any location - within or outside the UK. It applies only to Individuals and Corporations based in the UK and to Non-UK

Individual Residents taking courses in the UK.

Cost includes:

Free Continuous snacks throughout the Event Days;

Free Hot Lunch on Event Days;

Free City Tour;

Free Stationery;

Free On-site Internet Access;

Diploma – Postgraduate – in Upstream Oil and Gas Accounting and Contracts;

or

Certificate of Attendance and Participation – if unsuccessful on resit.







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Upstream Oil and Gas Accounting and Contracts: Oil and Gas Operations, MineralRights, Leases and Successful Efforts Accounting

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CCoouur r ssee OObb j jeeccttiivveess

By the conclusion of the specified learning and development activities, delegates will be

able to:

Accurately account for ‘Disposition’ of capitalized costs, in reference to the

impairment of unproved properties; Address problems and issues associated with upstream oil and gas operation;

Address the geological issues relating to the origin, exploration and production of oil

and gas;

Appropriately address Disposition of capitalized costs from the surrender or

abandonment of property;

Appropriately apportion costs to non-drilling and drilling operations, respectively;

Demonstrate a working knowledge of Amortization, with particular reference to the

oil and gas industry;

Demonstrate an appreciation of financial reporting policies and practices applicable

in Oil and Gas Industry;

Demonstrate an awareness of the salient issues associated with the development of

the United States oil and gas industry, as a mark car to International oil and gas

exploration developments and it mining operations;

Demonstrate an understanding of the oil and gas industrial and the activities of each

subsector;

Demonstrate mastery of the concepts and issues associated with exploration and

drilling operation;

Describe the methods of exploration generally used within the oil and gas industry;

Discuss, with examples, the benefits and drawbacks of nonworking interest;

Distinguish between 3D and 4D Seismic;







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Distinguish between Mineral Rights, Mineral Interests and Fee Interests;

Distinguish between natural and artificial lifts, in oil and gas production;

Distinguish between Non-drilling and Drilling Costs;

Distinguish between the different types of wells;

Explain the basic principles of Successful Efforts Accounting in Oil and Gas;

Explain the contractual issues that are associated with oil, gas and mineral lease;

Explain, with examples, Overriding Royalty Interests (ORI);

Explain, with minor omissions, the processes involved in oil and gas acquisition,

exploration and mining;

Outline the methods of production, employed in the oil and gas industry;

Outline the role of finance and accounting in an Oil and Gas Organisations;

Work through examples of Amortization of exploration and development costs of proved developed reserves.

CCoouur r ssee CCoonntteennttss,, CCoonncceeppttss aanndd IIssssuueess

Please note that the breakdown represents a guide only and not a rigid arrangement. The

tutor has the right to deviate from the order, as he or she deems necessary. While we aim

to cover as much as possible of the concepts and issues, it is impossible to discuss all

aspects. As a Postgraduate Course, Delegates and Students are expected to conduct their

own research. As for all academic and professional examination, this course assesses

selected knowledge and skills area, for each course iteration (delivery). Delegates and

students should take responsibility for all the contents, concepts and issues that are

presented below.

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Introducing the Oil and Gas Industry;

Brief History of the U.S. Oil and Gas Industry;

Origin of Petroleum;

Anticline;

Exploration Methods and Procedures;

3-D Seismic;







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4-D Seismic;

Acquisition of Mineral Interests in Property:

Mineral Rights;

Mineral Interests;

Fee Interests;

Overriding Royalty Interests (ORI);

Retained ORI Production Payment Interest (PPI);

Dutch Carved-Out Production Payment;

Carved-Out Net Profits Interest Created From Working Interest;

Net Profits Interest Created From Mineral Interest.

Oil, Gas and Mineral Lease Provisions:

Lease Bonuses;Royalty Provision;

Primary Term;

Delay Rental Payment;

Shut-In Payment;

Right To Assign Interest;

Right To Free Use Of Resources For Lease Operations;

Option Payment;

Offset Clause.

Addressing Problems and Issues Associated with Upstream Oil and Gas

Operation.

PPaar r tt 22:: IInnttr r oodduuccttiioonn ttoo OOiill aanndd GGaass AAccccoouunnttiinngg ((11))

Oil and Gas Drilling Operations;

BOP (Blowout Preventer);

Bottom-Hole Pressure;

Bottom-Hole Pump;

Drill String;

Rat Hole;

Mouse Hole;







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Drilling Platform;

Drilling Rig;

Proved Area;

Drill Stem Test;

Derek and Derek Hands;

Cracking;

Field;

Christmas Tree;

Sedimentary Rock;

Seismic Exploration;

Development Well Flowing Well;

Injection Well; Offset Well;

Stratigraphic Well.

PPaar r tt 33:: IInnttr r oodduuccttiioonn ttoo OOiill aanndd GGaass AAccccoouunnttiinngg ((22))

Stratigraphic Test Well or Exploratory Well;

Service Well;

Dry Hole;

Dual Completion;

Dry Natural Gas;

Natural and Artificial Lifts;

Oil and Gas Production and Sales;

Some State and US Federal Oil and Gas Drilling Regulation;

Maximum Efficiency Drilling Rate (MER);

The Concept of Peak Oil;

Historical Cost Accounting Methods;

Historical Development of Accounting Methods and Current Status;

Introduction to Successful Efforts Accounting;

Chart Accounts for Successful Efforts Company;

Oil and Gas Subsectors – Upstream, Mid-Stream And Downstream;







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Horizontal, Vertical and Full Integration within the Oil and Gas Industry;

Addressing Problems Associated with Oil and Gas Accounting.

PPaar r tt 44:: NNoonnddr r iilllliinngg EExxpplloor r aattiioonn CCoossttss – – SSuucccceessssf f uull EEf f f f oor r ttss

Introduction to Full Cost (FC) Accounting;

Distinguishing between Non-Drilling and Drilling Costs;

Cost of Identifying Areas that Might Warrant Exploration:

Cost of Topographical, Geological and Geophysical Studies;

Cost of Carrying and Retaining Undeveloped Properties;

Dry Hole Contribution;

Cost of Drilling and Equipping Exploratory Well;Cost of Drilling Exploratory Type Stratigraphic Test Well.

Successful Efforts– Exploration Cost;

Accounts For a Full Cost Company;

G&G Costs:

Reconnaissance Survey;

Detailed Survey;

Shooting Rights.

Obtaining G & G Permits;

Exchanging C & G Studies for Property Interest.

PPaar r tt 55:: AAccqquuiissiittiioonn CCoossttss oof f UUnnppr r oovveedd PPr r ooppeer r ttyy – – SSuucccceessssf f uull EEf f f f oor r ttss

Carrying and Retaining Costs:

Delayed Rental Property Taxes;

Legal Cost for Title Defense;

Clerical and Record-Keeping Costs.

Test-Well Contributions:

Dry Hole Contribution;

Bottom-Hole Contribution.

Support Equipment And Facilities;







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Problems;

Offshore and International Operations;

Purchase in Fee (Fee Purchase);

Internal Costs;

Options To Lease;

Delinquent Taxes and Mortgage Payment.

PPaar r tt 66:: AAccqquuiissiittiioonn CCoossttss oof f UUnnppr r oovveedd PPr r ooppeer r ttyy – – SSuucccceessssf f uull EEf f f f oor r ttss

Successful Efforts Acquisition Costs;

Internal Costs;

Options to Lease; Delinquent Tax and Mortgage Payments;

Top Leasing;

Amortization;

Amortization of Exploration and Development Costs of Proved Developed

Reserves;

Impairment;

Disposition of Capitalized Costs – Impairment of Unproved Properties;

Disposition of Capitalized Costs – Surrender or Abandonment Of Property;

Post Balance Sheet Events;

Disposition of Capitalized Costs – Reclassification Of An Unproved Property;

Land Department;

Addressing Issues and Problems in Unproved Property Acquisition Costs.







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Synopsis of Diploma – Postgraduate, Postgraduate Diploma and

Postgraduate Degree Regulation

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Delegates studying courses of 5-9 days duration, equivalent to 30-54 Credit Hours (direct

lecturer contact), will, on successful assessment, lead to the Diploma – Postgraduate. This

represents a single credit at Postgraduate Level. While 6-day and 7-day courses also lead

to a Diploma – Postgraduate, they accumulate 36 and 42 Credit Hours, respectively.

Delegates and students who fail to gain the required level of pass, at Postgraduate Levelwill receive a Certificate of Attendance and Participation. The Certificate of Attendance and

Participation will not count, for cumulative purpose, towards the Postgraduate Diploma.

Courses carry varying credit values; some being double credit, triple credit, quad credit and

5-credit, etc. These, therefore, accumulate to a Postgraduate Diploma. As is explained,

later, in this document, a Postgraduate Diploma is awarded to students and delegates who

have achieved the minimum of 360 Credit Hours, within the required level of attainment.

Credit Value and Credit Hours examples of Diploma – Postgraduate Courses are as

follows:

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Single-Credit 30-36

Double-Credit 60-72

Triple-Credit 90-108

Quad-Credit 120-144

10-Credit (X36 Credit-Hours) to 12-

Credit (X30 Credit-Hours) 360

Other Credit Values are calculated proportionately.







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Because of the intensive nature of our courses and programmes, assessment will largely

be in-course, adopting differing formats. These assessment formats include, but not limited

to, in-class tests, assignments, end of course examinations. Based on these assessments,

successful candidates will receive the Diploma – Postgraduate, or Postgraduate Diploma,

as appropriate.

In the case of Diploma – Postgraduate, a minimum of 70% overall pass is expected. In

order to receive the Award of Postgraduate Diploma, candidate must have accumulated at

least the required minimum ‘credit-hours’, with a pass (of 70% and above) in at least 70%

of the courses taken.

Delegates and students who fail to achieve the requirement for Postgraduate Diploma, or

Diploma - Postgraduate - will be given support for 2 re-submissions for each course. Those

delegates who fail to achieve the assessment requirement for the Postgraduate Diploma or

Diploma - Postgraduate - on 2 resubmissions, or those who elect not to receive them, will

be awarded the Certificate of Attendance and Participation.

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Applicants for Diploma – Postgraduate, Postgraduate Diploma and Postgraduate Degrees

are required to submit the following documents:

Completed Postgraduate Application Form, including a passport sized picture

affixed to the form;

A copy of Issue and Photo (bio data) page of the applicant’s current valid

passport or copy of his or her Photo-embedded National Identity Card;

Copies of credentials mentioned in the application form.







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On receipt of all the above documents we will make an assessment of the

applicants’ suitability for the Programme for which they have applied;

If they are accepted on their Programme of choice, they will be notified

accordingly and sent Admission Letters and Invoices;

One week after the receipt of an applicant’s payment or official payment

notification, the relevant Programme Tutor will contact him or her, by e-mail or

telephone, welcoming him or her to HRODC Postgraduate Training Institute;

Non-European Students will be sent immigration documentation, incorporating a

Visa Support Letter. This letter will bear the applicant’s photograph and passport

details;

Applicants will be notified of the dates, location and venue of enrolment and

orientation;

Non-UK students will be sent general information about ‘student life’ in the UK

and Accommodation details.

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There are three delivery formats for Postgraduate Diploma Courses, as follows:

1. Intensive Full-time Mode (3 months);

2. Full-time Mode (6 month);

3. Video-Enhanced On-Line Mode.

Whichever study mode is selected, the aggregate of 360 Credit Hours must be achieved.







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CCCuuummmuuulllaaat t t iiivvveee PPPooossst t t gggrrraaaddduuuaaat t t eee DDDiiippplllooommmaaa CCCooouuurrrssseeesss

All short courses can accumulate to the required number of hours, for the Postgraduate

Diploma, over a six-year period from the first registration and applies to both general and

specialist groupings. In this regard, it is important to note that short courses vary in length,

the minimum being 5 days (Diploma – Postgraduate) – equivalent to 30 Credit Hours,

representing one credit. Twelve 5-day short courses, representing twelve credits or the

equivalent of 360 Credit Hours are, therefore, required for the Award of Postgraduate

Diploma.

A six-day course (Diploma – Postgraduate) is, therefore, equivalent to 36 hours Credit

Hours, representing one credit. Therefore, ten short courses, of this duration, equates to

the required 360 Credit Hours, qualifying for the Award of Postgraduate Diploma. While

double-credit courses last between ten and fourteen days, triple-credit courses range from

fifteen to nineteen days. Similarly, quad-credit courses are from sixteen to nineteen days.

On this basis, the definitive calculation on the Award requirement is based on the number

of hours studied (aggregate credit-value), rather than merely the number of credits

achieved. This approach is particularly useful when a student or delegate studies a mixture

of courses of different credit-values.

For those delegates choosing the accumulative route, it is advisable that at least two

credits be attempted per year. This will ensure that the required number of credit hours for

the Postgraduate diploma is achieved within the six-year time frame.

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On the successful completion of the Postgraduate Diploma, delegates may register

for the Masters Degree, after their successful completion of Course #7: Research

Project: Design, Conduct & Report .







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The Delegates’ Degree Registration Category will be dictated by the courses or

modules studied at Postgraduate Diploma Level. The categories relate to Master of

Business Administration (MBA); Master of Arts (MA) Master of Science (MSc);

Executive Master of Business Administration (Executive MBA). Additional details are

provided in the document entitled: regulation For HRODC Postgraduate Training

Institute Diploma – Postgraduate - Postgraduate Diploma and Masters Degree –

MA, MBA, MSc.

Terms and Conditions

HRODC Policy Terms and Conditions are Available for viewing at:

http://www.hrodc.com/COSTS.htm

Or Downloaded, at:

http://www.hrodc.com/Brochure_Download_Centre.Company_Brochures_Seminar_Brochu

res_Seminar_Schedule.htm

The submission of our application form or otherwise registration by of the submission of a

course booking form or e-mail booking request is an attestation of the candidate’ssubscription to our Policy Terms and Conditions, which are legally binding.

upstream oil and gas accounting contracts oil and gas operation mineral rights leases and successful...

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