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Fundamentals of Oil and Gas Accounting AL Mawred Speciality Training

Fundamentals of Oil and Gas Accounting

Why Attend

A topic of global importance and of particular sensitivity in the Middle East is that of oil and gas. This course is designed to assist accountants in oil and gas organizations in understanding the accounting complexities particular to this industry. Accounting in the oil and gas industry is mostly about 'expensing' or capitalizing the billions of dollars paid in assets. The 'expensing' or capitalizing of these billions is decided using the successful efforts method or the full cost method which are both accounting essentials in the oil and gas industry. In this course these subjects are thoroughly discussed and explained.

The course starts with the history of this industry and explains the accounting methods discussed above. It goes on to discuss details of these methods such as treatment of unproved property and drilling or non drilling costs. The courses then tackles how the proper allocation of these costs affects company financials, as well as the depletion and depreciation of the capitalized assets. The course ends with the treatment of costs of support equipment and facilities.

AL Mawred Speciality Training
Overview
Course Methodology

The course includes presentations, explanations and examples by the instructor. Participants will asked to calculate the proper amounts to capitalize or expense under the two methods. The course includes exercises, group workshops, presentations and a conceptual case study.

Course Objectives

By the end of the course, participants will be able to:

  • Generate accounts for oil and gas operations
  • Compare between the accounting methods of successful efforts and full cost accounting
  • Identify how to account for production activities
  • Account for revenues received in the oil and gas industry
  • Explain the accounts for joint interest operations
  • Analyze the effect of costs under different methods on financial statements
Target Audience

Professionals in the field of finance and accounting, chief accountants, GL accountants, finance managers and supervisors, general management team, and finance staff who need to get specialized knowledge of oil and gas accounting.

Target Competencies
  • Successful effort accounting methods
  • Full cost accounting method
  • Cost capitalization and depreciation
  • Cost allocation
  • Reporting of capitalized
  • Reporting of expensed costs
Course Outline
  • Introduction to oil and gas accounting
    • History of oil and gas industry
    • On shore activities
    • Off shore activities
    • Natural gas activities
    • Industry structure and terminology
    • Historical cost accounting methods
    • Successful efforts accounting
    • Full cost accounting
    • Forms of division of revenue from oil and gas
  • Successful efforts accounting
    • Explaining oil and gas accounting terms
    • Non drilling exploration costs
    • Oil and gas cost types
    • Acquisition costs of unproved property
    • Drilling and development costs
    • Proved property cost disposition
    • Accounting entries under successful efforts method
  • Full cost accounting
    • Full cost method
    • Disposition of capitalized costs
    • Accounting entries under full cost method
  • Acquisition costs of unproved property
    • Purchase in fee
    • Internal costs accounting
    • Options to purchase or lease
    • Disposition of capitalized costs
    • Impairment of unproved property
    • Post balance sheet events
    • Reclassification of property
  • Non drilling exploration costs
    • Identification of exploration costs
    • Geological and geophysical costs
    • Carrying and retaining costs
    • Test well contributions
  • Drilling and development costs
    • Intangible drilling and development costs
    • Exploratory drilling costs
    • Development drilling costs
    • Accounting entries to record drilling and development costs
  • Support equipment and facilities
    • Costs and accounting issues of property, plant and equipment
    • Applying different depreciation methods
    • Revenue and capital expenditure
    • Discarding and scrapping plant assets
Mawred Certificate
Mawred Certifications
Al mawred Professional Certificate (Mawred Certificate)

Mawred Certificate courses by Al mawred Training & Consulting are designed for those willing to challenge themselves and go the extra distance. Participants who fully attend an Mawred Certificate course and successfully complete the test on the last day, will receive a Al mawred Professional Certificate (Mawred Certificate), in addition to the one they receive for full attendance. Mawred Certificate certificates are regionally recognized and can be quite valuable when applying for more senior roles within the organization or outside.

List of Certified Courses
Schedule & Fees

2026 Schedule & Fees

Location & Date
31 May - 4 Jun, 2026
Dubai
Arabic
Venue to be assigned
Fees

Fees + VAT as applicable

(including coffee breaks and a buffet lunch daily)

Discount Plans & Cancellations Policy

Al mawred reserves the right to alter dates, content, venue, trainer, and to offer courses in an integrated virtual learning (IVL) format whereby face to face classroom participants and virtual learners participate simultaneously in the same course in an interactive learning experience.

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