Introduction

The dynamic world of upstream petroleum accounting demands specialized knowledge of exploration and production (E&P) activities, regulatory frameworks, and financial reporting standards. Training Course on Upstream Petroleum Accounting provides in-depth coverage of the accounting methods and financial principles used in the upstream sector of the oil and gas industry. Learners will gain practical insights into revenue recognition, joint venture accounting, cost recovery mechanisms, and asset retirement obligations. The training uses real-world scenarios, making it a must for professionals aiming to lead in the energy sector.

With energy markets evolving and stricter compliance standards emerging globally, mastering upstream petroleum accounting is more critical than ever. This training equips participants with industry-aligned skills in production sharing contracts (PSCs), reserve-based lending, and IFRS/GAAP convergence. The course is tailored for accountants, financial analysts, auditors, regulators, and stakeholders involved in upstream oil and gas operations, making it a strategic investment in professional advancement.

Programme Curriculum

Training Course on Upstream Petroleum Accounting

Introduction

Course Objectives

Understand exploration and production accounting frameworks in the upstream oil and gas sector
Master joint venture and farm-in/farm-out agreements financial structures
Apply International Financial Reporting Standards (IFRS) relevant to E&P activities
Analyze cost recovery and revenue recognition in Production Sharing Contracts (PSCs)
Gain expertise in asset capitalization and impairment testing
Implement depletion, depreciation, and amortization (DD&A) methodologies
Understand environmental liabilities and asset retirement obligations (AROs)
Use reserves estimation for financial reporting and valuation purposes
Learn internal control practices for upstream financial operations
Apply financial modeling techniques for upstream investment decisions
Interpret regulatory compliance and taxation structures for petroleum revenue
Evaluate digital transformation trends in oil and gas accounting
Analyze real-world case studies in upstream petroleum finance

Target Audience

Financial Accountants in Oil & Gas
Petroleum Engineers with Finance Roles
Internal and External Auditors
Energy Investment Analysts
Government Revenue Regulators
Joint Venture Accountants
Financial Controllers in E&P Companies
Oil and Gas Tax Professionals

Course Duration: 5 days

Course Modules

Module 1: Fundamentals of Upstream Petroleum Accounting

Overview of upstream oil and gas lifecycle
Classification of costs: exploration, development, production
Introduction to full cost and successful efforts methods
Key differences between IFRS and US GAAP
Initial journal entries in exploration accounting
Case Study: Comparing cost treatment under full cost vs. successful efforts

Module 2: Joint Venture and Partnership Accounting

Structure and purpose of joint ventures
Farm-in/farm-out agreement accounting
Cash call management and reconciliation
Operator vs. non-operator roles and responsibilities
Accounting for carried interests
Case Study: Financial analysis of a JV with a carried interest arrangement

Module 3: Production Sharing Contracts (PSCs) and Cost Recovery

Anatomy of a typical PSC
Accounting for cost oil and profit oil
Calculation of cost recovery limits
Ring-fencing and its financial implications
Bonus payments and royalty accounting
Case Study: Accounting for a multi-tier PSC agreement in West Africa

Module 4: Fixed Asset Accounting and Capitalization

Capital vs. expense decisions in exploration
Componentization of oilfield assets
Asset revaluation and impairment testing
Leased assets and right-of-use accounting (IFRS 16)
Depreciation techniques (unit-of-production method)
Case Study: Asset impairment scenario during price collapse

Module 5: Decommissioning and Asset Retirement Obligations

Legal framework and liabilities
Recognition and measurement of AROs
Discounting and accretion of AROs
Impact of changes in estimates
Disclosure requirements under IFRS and GAAP
Case Study: ARO accounting for offshore platforms

Module 6: Revenue Recognition and Sales Accounting

Revenue streams in upstream operations
Point of control vs. delivery obligations
Pricing mechanisms in oil sales contracts
Netback pricing and transportation tariffs
Application of IFRS 15 to E&P
Case Study: Revenue recognition in a multi-client sales contract

Module 7: Regulatory and Taxation Environment

Key tax regimes: royalty/tax, PSCs, service contracts
Withholding taxes and VAT treatment
Transfer pricing in intercompany transactions
Tax incentives and ring-fencing issues
Country-by-country reporting (OECD BEPS guidelines)
Case Study: Tax impact analysis for a Nigerian E&P entity

Module 8: Emerging Trends and Digital Transformation

Role of ERP systems in upstream accounting
Blockchain for joint venture transparency
Automation of DD&A and AFE workflows
Data analytics for financial reporting accuracy
ESG metrics in upstream reporting
Case Study: Implementation of SAP in a mid-sized exploration company

Training Methodology

Instructor-led sessions with oil & gas accounting experts
Interactive case studies based on real-world scenarios
Hands-on exercises using actual industry financial templates
Group discussions to encourage cross-functional learning
Quizzes and assessments to test understanding
Access to digital resources, templates, and PSC models

Register as a group from 3 participants for a Discount

Send us an email: info@fineskilltrainingcenter.org or call +254769199797

Certification

Upon successful completion of this training, participants will be issued with a globally- recognized certificate.

Tailor-Made Course

We also offer tailor-made courses based on your needs.

Key Notes

a. The participant must be conversant with English.

b. Upon completion of training the participant will be issued with an Authorized Training Certificate

c. Course duration is flexible and the contents can be modified to fit any number of days.

d. The course fee includes facilitation training materials, 2 coffee breaks, buffet lunch and A Certificate upon successful completion of Training.

e. One-year post-training support Consultation and Coaching provided after the course.

f. Payment should be done at least a week before commence of the training, to Fineskill Training Center account, as indicated in the invoice so as to enable us prepare better for you.

Skills & Software Covered

Petroleum Accounting Finance Oil & Gas Reporting

Programme Fee

Duration: 5 Days

Method: Online or Physical

Online Price: $1,000

Physical Price: $1,500

Certification: Accredited Certificate

View Available Dates 📄 Download Course Outline (PDF)

Available Sessions

Location

Month

Year

Oct 19 2026

19 Oct — 23 Oct 2026

💻 Online / Virtual session

Online $1,000