Accounting and Finance in Oil and Gas Industry

The oil production industry is characterized by a special technical and economic nature. The element of risk and uncertainty of the results is necessary in the research and exploration phase, which may not lead to meaningful economic results, or on the contrary, it may lead to useful results that enable the recovery of the full investment costs within a short period.

Also, this industry needs large capitals and a long period of time to recover them, and this is what makes countries often unable, in general, to rely on themselves to finance the huge expenditures necessary for oil exploration, development and production, which makes these activities a field for several types of petroleum contracts such as concessions. Lease contracts and production sharing contracts, and this leaves significant implications for the accounting practices of oil production companies that have to portray the technical and legal activity so that the financial statements reflect this activity.

The accounting and finance course in the oil and gas industry aims to identify how activities and decisions are reflected in the reports of the company, shareholders and stakeholders, and to discover changes in the financial and economic data submitted by the participant or by fellow departments. We also help enhance the level of personal confidence in handling financial information and interacting with business colleagues. The course provides case studies, solved examples, and abstracts from illustrative annual reports in oil and gas companies, to support learning throughout the course.