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Associated Press
09-04-2025
- Business
- Associated Press
International Oil & Gas Accounting Master Class: Emphasis on Operations Under 'Production Sharing Contracts' (Muscat, Oman - May 12-15, 2025)
The 'International Oil & Gas Accounting Master Class' conference has been added to offering. This four-day course focuses on the accounting issues currently faced by the upstream oil and gas industry with an emphasis on operations under 'Production Sharing Contracts'. It considers the accounting and financial reporting implications of all the main transactions undertaken in the upstream business, including cost allocation and capitalization, revenue allocation and the accounting issues faced by joint venture operations and operators of concessions and PSC's. The course considers both internal accounting issues and financial reporting under US GAAP and IFRS frameworks; and is fully updated for new Standards effective for 2025 and beyond. Why Attend? Accountants and analysts in the upstream oil and gas sector face unique challenges. There are complex contractual arrangements, multiple financial reporting requirements and the fall in oil prices has triggered requirements for impairment reviews. Add to that, with the lack of clear guidance provided by IFRS and constant changes to the Standards, it is little surprise that this sector finds accounting for its transactions so difficult. This course is intended to provide an in depth look at the accounting for these unique arrangements and help you and your team put them into practice effectively, and keep up to date with latest developments, and will consider the application of IFRS 15 on revenue and IFRS 16 leasing. Course Format The course format includes presentations on key aspects of the standards, small group exercises and longer workshop-style case studies focusing on issues common to the oil and gas sector, group discussions and reviews of relevant financial statements. Pre-course Questionnaire A pre-course questionnaire will be sent to you upon your registration which will allows you to raise your specific areas of interest. Alan will review and analyze these in advance and address them during the workshops, seeking to fully satisfy your learning needs. Certificate of Attendance Upon the successful completion of this course, you will receive a Certificate of Attendance bearing the signatures from both the Trainer and the Organizer. This Certificate will testify your endeavour and serve towards your professional advancement. Who Should Attend: The course will be of benefit to all finance and accounting professionals who require an in depth understanding of oil and gas accounting procedures including those involved in the preparation, audit or analysis of oil and gas accounts particularly those working in PSC environments. The course will include a wide range of learning and development approaches including: Lecture-based presentations Practice case studies Reviews of relevant financial statements Group exercises and discussions Expert tutor inputs Specific areas treated include: Economics of production sharing contracts and accounting for cost oil, tax oil and profit oil Different contracting arrangements such as risked service agreements and consequences for financial reporting Property, plant and equipment Intangibles and in particular exploration and evaluation activities Reporting of oil and gas reserves The challenges posed by impairment reviews Provisions, particularly decommissioning costs Accounting for farm-in, farm-outs and joint arrangements It will particularly benefit: Staff who are taking on increased financial or accountancy responsibilities including: Chief Accountants, Financial Accountants, Accounting Clerks, Joint Venture and Joint Operating Agreement Accountants, Internal and External Auditors, Financial Analysts from financiers and regulators etc Those accountants, auditors and analysts who are relatively new to the oil and gas industry Agenda: Day 1 Background to Accounting Frameworks for Oil & Gas Oil and gas contracting arrangements: different types (PSC, risk sharing, tax and royalty), purpose, economics and impacts upon financial reporting Case Study: Identifying the key accounting issues posed by different contractual arrangements and accounting frameworks Accounting for Exploration and Development Application to accounting procedures in PSCs and service agreements The Full Cost Method of Accounting Comparison of key differences under US GAAP & IFRS Case Study: Accounting under the full cost method Day 2 Successful Efforts: From Prospecting To Evaluation Application to accounting procedures under PSC's Case Study: Accounting for costs, from prospecting to evaluation Successful Efforts: Drilling & Development Case Study: Initial and subsequent accounting for drilling and non-drilling costs Drilling and Development - Contractor Services and Leasing Identifying a lease under IFRS 16 Case Study: Distinguishing lease from non-lease components and accounting for the lease Drilling and Development - Capitalisation of Borrowing Costs Treatment of interest costs under PSC's Case Study: Estimating borrowing costs for capitalisation Day 3 Drilling and Development - Decommissioning Costs Case Study: Estimation, initial and subsequent accounting for decommissioning costs Accounting Issues during Production Calculation and allocation of costs of production under PSC's Case Study: In cost allocation, DD&A and impairment Revenue Recognition, Measurement and Allocation Review IFRS 15: 5-step methodology Application of IFRS 15 in relation to technical service and similar contracts Case Study: Accounting for oil and gas imbalances Comprehensive Case Study: Calculating cost oil, tax oil and profit oil under PSC's Day 4 Joint Arrangement Accounting Differentiating joint arrangements from PSCs and other contractual arrangement Accounting for farm-ins and farm-outs and carried interests Case Study: Accounting for transactions between venturers Reserves Estimation and Disclosure Comprehensive Case Study: Examining the impact of different scenarios on PSC reserves Case Study: Analysing Reserves Disclosure Speakers: Alan Mayo Owner Maltway Alan Mayo FCA is a chartered accountant from the UK and a member of the Institute of Internal Auditors with 30 years' professional experience. Alan began his career with PwC where he spent 10 years conducting and managing external audits in the private sector. He then spent a further 10 years as a consultant with PwC leading training programs supporting major systems and process change, predominantly in the public sector. On leaving PwC Alan formed his own training business which he has been running for the past 15 years. During that time he has worked on a wide range of financial training projects within the private, public and not-for-profit sectors. Alan has conducted training courses worldwide covering aspects of risk management, internal control, operational and financial control, countering risk of fraud, financial reporting and audit for numerous organisations including Shell and Government Agencies such as London Boroughs of Lambeth and Ealing Council etc. is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. Laura Wood, Senior Press Manager [email protected] For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900 KEYWORD: INDUSTRY KEYWORD: OIL/GAS ENERGY SOURCE: Research and Markets Copyright Business Wire 2025. PUB: 04/09/2025 11:25 AM/DISC: 04/09/2025 11:25 AM
Zawya
13-02-2025
- Business
- Zawya
Chevron Expands Namibia Presence with Petroleum Exploration License 82 (PEL 82) Farm-in, Signaling Growing International Oil Company (IOC) Interest in African Energy
Africa's oil and gas sector continues to draw interest from international oil companies (IOCs) through well-structured Production Sharing Contracts (PSCs) and strategic farm-in agreements. Last week, US major Chevron completed a farm-in agreement with Custos Energy for PEL 82 in the Walvis Basin offshore Namibia. Under this transaction, Chevron acquired an 80% participating interest and operatorship, while Custos and the National Petroleum Company of Namibia each retained a 10% interest. The transaction marks a significant step in the development of Namibia's offshore oil and gas sector. PEL 82, which covers blocks 2112B and 2212A, is considered one of the most attractive opportunities in the Walvis Basin. Notably, around 70% of the total block area is already covered by extensive seismic data – over 3,500 km of 2D and 9,500 km² of 3D data. Previous drilling activities on PEL 82, such as the Murombe-1 and Wingat-1 wells, have provided valuable insights into the potential of the area. Chevron's acquisition of an interest in PEL 82 complements its existing offshore exploration efforts in Namibia, where it operates PEL 90 in the Orange Basin. Chevron's entry into PEL 82 is part of its broader strategy to expand its exploration acreage in promising global geological plays and further solidifies Namibia's position as a leading frontier for oil and gas exploration. One of the most critical factors in attracting IOCs is ensuring that PSCs offer favorable fiscal terms. Competitive tax regimes and profit-sharing models create incentives for investment while allowing governments to secure a fair share of revenues. Equally important is regulatory stability. Consistent and transparent policies provide companies with long-term security, minimizing uncertainties that can deter investment. Beyond Namibia, other African nations have been structuring PSCs that continue to draw in international investors. In Equatorial Guinea, the government signed agreements in June 2024 with Chevron for offshore Blocks EG-06 and EG-11. These contracts, established in partnership with GEPetrol, outline minimum investment requirements, detailed exploration programs, and commitments to sustainable development. The attractiveness of these PSCs is largely due to their location near the productive Block B, home to the Zafiro field, and the clarity of development plans that ensure both state benefits and commercial viability. Algeria has also seen success in crafting appealing PSCs. In 2022, a consortium led by TotalEnergies and including Sonatrach, Occidental and Eni extended a 25-year PSC for Blocks 404a and 208 in the Berkine Basin. The agreement, worth an estimated $4 billion in investment, is set to unlock over one billion barrels of oil equivalent and is made possible under Algeria's updated hydrocarbon law, offering enhanced fiscal incentives and greater investor confidence. Farm-in agreements, like the one recently completed by Chevron, play a pivotal role in fostering collaboration and facilitating resource-sharing and risk mitigation in oil and gas projects. By acquiring stakes in existing exploration or production blocks, companies ensure that projects with high potential receive the necessary capital and expertise to move forward. Successful farm-ins typically focus on assets with proven reserves or strong geological prospects, as seen with Chevron's PEL 82 acquisition, which has extensive seismic coverage and previous drilling activity. This ensures that the project is not only viable but positioned for long-term success. Other notable farm-in agreements across Africa highlight the continent's growing appeal to IOCs. For instance, Azule Energy recently acquired a stake in Block 2914A in Namibia's Orange Basin, further reinforcing the country's emerging status as a key player in offshore exploration. Similarly, Africa Oil Corp has entered the offshore sector in Equatorial Guinea with PSCs for Blocks EG-18 and EG-31, signaling a revitalization of the country's offshore exploration. The success of PSCs and farm-in agreements across Africa underscores the continent's ability to compete for investment in a rapidly evolving global energy market. By maintaining investor-friendly policies, regulatory stability and fostering strategic partnerships, African nations can continue to attract capital and expertise to sustainably develop their oil and gas resources. Discussions on structuring attractive PSCs and fostering high-impact farm-in agreements will take place at African Energy Week (AEW): Invest in African Energies 2025, bringing together industry leaders, investors and policymakers to explore strategies for maximizing Africa's hydrocarbon potential and establishing mutually beneficial partnerships. With major players like Chevron expanding their footprint on the continent, AEW 2025 serves as the ideal platform for dealmaking, networking and shaping the future of Africa's energy landscape. Distributed by APO Group on behalf of African Energy Chamber. AEW: Invest in African Energy is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit for more information about this exciting event.
