About
Course Description
This is a practical 5-day course covers the issues of actual and standard cost as a control tool, associated with oil and gas operations. Using Oil and gas industry examples and exercises, the participants will learn how to deal with those issues.
Course Goal
To enhance the participants’ Knowledge, Abilities and Skills necessary to understand and apply the concepts, principles, policies, and methods of actual and standard cost as a control tool in Oil and Gas Companies
Course Objectives
By the end of the course the participant will be able to:
- Understand the terminology of cost accounting and controls
- Deal with the critical issues related to cost accounting and cost control in Oil and Gas Companies
Course Outline
Cost Terms and Purposes
- Key Cost Concepts: Cost, Loss, and Waste.
- Expense and Expenditure
- Inventoriable and Non-inventoriable (Product and Period Costs)
- Manufacturing and Non-manufacturing
- Direct and Indirect Costs
- Fixed and Variable Costs
- Actual and Standard Costs
- Centers and Cost Allocation
An Overview of Oil and Gas Accounting
- Characteristics of Oil and Gas Industry
- Acquisition costs: the nature and behavior of Acquisition costs.
- Exploration and Drilling cost: Its nature and behavior.
- Development cost: Its nature and behavior.
- Production cost: Its nature and behavior.
- Common Terms Glossary
- Generally accepted historical cost methods:
- Successful-efforts accounting (SE)
- Full-cost accounting (FC)
- Overview of Entries under SE and FC
Standard Costs and Control
- What is cost control?
- Setting Standards
- Variance analysis
- Efficiency/price variances
- Variance Investigation
Standard costs in Oil and Gas Industry
- Exploration and Drilling Costs
- How to estimate the cost of a well
- How to control the cost of a well
- Development Costs
- How to estimate the cost of development.
- How to control costs during the development phase
- Production Costs
- How to estimate the production operating costs.
- How to control and analyze production costs
Training Methodology
Pathways Training and consulting adopts the newest techniques of human resources Training and consulting and, with the following:
- Theoretical lectures are delivered via PowerPoint and visual displays (videos and short films)
- Making scientific evaluation to the trainee (before and after)
- Brainstorming and role-playing
- Using case studies related to the scientific material being delivered and the trainees' work.
- The participants get the scientific and practical material printed and on CDs and Flash memories.
- Preparing records and reports of the participants' attendance and results, with a general evaluation of the training program.
- A group of the best trainers and experts in all fields and specialties professionally prepares the scientific material.
- After finishing the course, the participants get certificates of attendance signed, certified, and issued by pathways Training and consulting.
- Our training programs start at 9:00 o'clock in the morning and end at 2:00 in the afternoon, with snack buffet during the lectures.
- Providing a lunch buffet during the training program period, with organizing a lunch party on the training program final day for taking some photos and certificate awarding.
