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International Accounting Development: Oil and Gas


International Accounting Development: Oil and Gas

Advanced International Program in Oil and Gas Financial Management

The University of Texas at Dallas, through its Center for International Accounting Development, sponsors this intensive three-week advanced international program in oil and gas financial management. It is designed for experienced personnel concerned with the financial accounting aspects of oil and gas operations.This non-degree program gives participants an improved understanding of accounting and financial issues pertaining to oil and gas operations. It addresses a number of related economic, legal, taxation, budgeting, planning, auditing, information system, managerial and strategic-planning issues.

Participants are drawn from middle- and upper-level personnel in countries other than the U.S. working, for example, in privately owned or government-owned oil and gas companies, government or private agencies involved with these operations, and accounting and consulting firms. The variety of backgrounds and countries represented in each class helps participants gain insight into comparative oil-and-gas operations and to exchange experiences by function and area. The instructors for this program include highly qualified professionals in consulting and accounting firms, and members of the academic community. Instruction is at a professional level, and each instructor provides course materials for participants' use. Extensive reliance is placed on examples, problems and case materials. The exchange of experience and ideas among participants from a variety of oil-producing countries is a major component of this program.

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The Center for International Accounting Development was created by The University of Texas at Dallas in 1976 in response to the growing needs of international, private and public entities for research, training and development in the area of international financial management. The center emphasizes the dissemination, research and development of accounting education, training, and practices for transition and developing economies.

Charles Hazzard

Director, Center for International Accounting Development: Oil & Gas

Program Dates

The program starts with an afternoon session on Sunday and finishes with a luncheon on Friday. Participants need to arrive no later than the morning of the opening session and be present at the closing luncheon. Faithful attendance is one of the requirements to receive a program certificate. Please schedule return flights after the closing luncheon. The 2015 program starts May 3 and runs through May 22.

Class Times

Classes begin each morning, Monday through Friday, at 8:30 a.m.. There are two 15-minute coffee breaks daily at mid-morning and mid-afternoon. Lunch runs from 11:45 a.m. to 1 p.m., and classes end at 4 p.m. except on Fridays when review sessions are held from 4 p.m.to 4:30 p.m. These review sessions outline the next week’s study material.

Location

Classes are held on the campus of The University of Texas at Dallas Naveen Jindal School of Management, off Campbell Road, about three miles west of the Radisson Hotel Richardson. Transportation to and from classes is provided at no charge for participants staying at the Radisson Hotel. Buses leave the Radisson Hotel promptly at 8 a.m. and return to the hotel at the conclusion of each day’s program.

Certificates

Certificates are awarded to those who successfully participate in the program. Program requirements are:

  • Attendance at program sessions, including the graduation luncheon. Attendance is mandatory. Certificates will not be awarded to persons who miss sessions without a valid written excuse.
  • Satisfactory participation in the program. Participants should anticipate that a substantial amount of preparation and homework will be required each day.
  • Satisfactory performance, as determined by the program, on quizzes and tests concerning the main materials.

Insurance

The program attempts to purchase health insurance for participants. There are limits to this insurance, however, and it does not cover any preexisting conditions. In addition, it is only effective during the time of the program.

Admission

Eligibility to Apply

Applicants should have a fundamental understanding of accounting, be proficient in the English language, and be employed in activities directly or indirectly associated with oil and gas operations. Although an academic degree is desirable, it is not required as long as applicants have gained adequate knowledge and/or experience to enable them to follow the program in international oil and gas financial management. The applicant's background and exposure at a senior level may be of more significance than academic degrees.

All applicants must be able to take part in the educational activities of the program. (If you are a person with a disability and need a special accommodation to attend this program, please contact the program registrar.) It is presumed that each applicant has no disabilities that would prevent him/her from active participation.

Admission

Admission to the program is based on applicant's work experience, education, and English language proficiency without regard to applicants' race, sex, color, religion, national or ethnic origin, ancestry, age or handicap. Enrollment may be limited, and the admissions committee reserves the right to reject any applicant without statement of reason.

Applications

Applications must include a letter, written in English, and supported by the following:

  • Biography and resume, including job title, business address, phone and fax numbers and email addresses
  • Recent photograph
  • Certified transcript of college/university including grades/marks and/or certification the applicant is qualified to attend the program
  • Statement of English proficiency
  • Two letters of recommendation in English, focusing on the applicants' qualifications in their home countries and addressing how participation in the Advanced International Program in Oil and Gas Financial Management will impact applicant's careers.

Please mail application letters and supporting documents to:
Ms. Donna P. Nix
Naveen Jindal School of Management SM 22
The Center for International Accounting Development
The University of Texas at Dallas
800 W. Campbell Road
Richardson, TX 75080 USA

Applications may be sent by fax: (972) 883-2192 or Email.

When communicating please include a return address, fax and telephone numbers (with area code and country code) and an email address (if available). Please note: Application and participation are not considered final until all documents have been received.

Visas

Participants should apply to the U.S. consulate for a Visitor’s Visa (B-1 Classification). Please note: Due to new restrictions it can take 60 to 90 days for visa applications to be processed. Check with the U.S. consulate in your area for the exact requirements. Please apply early.


Tuition

Tuition for the three-week program is $7,800 (US) for the first registrant and, to encourage team attendance, $7,500 (US) for each additional registration from the same organization. Tuition includes the cost of instruction and extensive course materials. It does not include living or travel expenses. Tuition is payable by April 18, 2015. (If tuition is received after this date, some course materials may not be available when the course begins.) Payment must be made via bank draft (check) or wire transfer. No Credit Card Payments are accepted. No scholarships or fellowships are offered. However, since the program’s sponsoring institution is a US tax-exempt organization, the program can be the recipient of gifts to cover participant’s attendance and fees.

Cancellation

Tuition, less a $100 handling charge for each registration, will be refunded upon written cancellation.

Room and Board

Accommodations will be at the DoubleTree Hotel in Richardson, Texas. The hotel is convenient to shopping, restaurant, banking and sports facilities. The single-occupancy room rate is $80 per day, plus tax (currently 13 percent) and is subject to change. These rates apply to a three-week stay (duration of the program). Higher rates apply for stays of less than three weeks.

Meals

Program participants will receive a free buffet breakfast at the DoubleTree hotel (coupons will be given to participants upon check-in). Lunch is available at the UT Dallas cafeteria on campus and costs approximately $5-$7 (US currency). Evening meals can be secured in the area or at the hotel at a variance of expense (average $8 to $25).

Materials Shipment

Registrants are advised to include a sum in their budgets for shipping course materials home. All materials are given in hard-copy format and may weigh up to 40 pounds. The cost of shipment by air usually runs between $500 and $600, depending on distance and carrier.

The Planning and Advisory Committee evaluates the most recent program based on feedback from participants and faculty. Committee members approve the next year's program, give opinions about the suitability of candidates applying to the program, comment on issues relating to oil and gas operations, give insights on other issues relevant to programs in oil and gas financial management, assess doing programs outside the U.S. and evaluate comparable programs.

Andrew B. Derman, Senior Partner, Head, International Energy Practice Group, Thompson & Knight

Peter D. Gaffney, Senior Partner, Gaffney, Cline & Associates

Kevin Green, Partner, Ernst & Young

John McNamara Partner, PricewaterhouseCoopers

Brad McPhail, Partner,KPMG LLP

Dan A. Odom, Partner, Deloitte
  • Afolabi O Arikenbi

    Mr. Arikenbi has over 13 years of client service experience in PwC. He has worked extensively in the energy sector with clients with international and domestic operations in natural gas and crude oil exploration and production and oilfield services. For the last several years, he has managed multiple SEC registrants’ and their extensive capital transactions including equity and debt offerings. He has dealt with numerous complex accounting matters on publicly listed clients including business combinations, equity instruments, derivative instruments, asset retirement obligations, suspended wells, discontinued operations, unevaluated properties and manual holdouts, impairment of proved and unproved properties. Mr. Arikenbiwas a contributor to the 7th edition of Petroleum Accounting and has instructed several trainings organized by PwC related to oil and gas related topics.

  • John Barden

    Mr. Barden is a Clinical Professor and the Director of Undergraduate Accounting Program at the University of Texas at Dallas. John teaches in the Undergraduate Accounting Program, On Line MBA program, the Executive Education program and leads the Business Coaches Program. In addition, John was the Director of the MS/MBA Program at Binghamton University in New York. John is a Certified Public Accountant, Certified Fraud Examiner and a Certified Global Management Accountant. For over 16 years John has worked in public accounting with PricewaterhouseCoopers, and corporate accounting with Gulf & Western and Azon Corporation. He graduated from St. John Fisher College in Rochester, New York with a BS in Accounting in 1983, and an MBA in Finance from Manhattan College in New York City in 1988.

  • Dale P. Brimer

    Mr. Brimer has more than 28 years of experience in the information technology consulting industry, as well as a deep business foundation, to meet the demands of an ever changing world marketplace. Currently, he is the Sr. Program Director in Verizon’s Global Business Services division. Previously, as the General Manager and Director of Operations for the USA Southwest Division of Systèmes d’Entreprise Logique, Mr. Brimer grew business operations from less than $50 million in revenue to more than $720 million; in addition, he implemented efficiency programs that raised profit margins from less than 12% to more than 37%. The key factor contributing to success was Mr. Brimer’s anticipation of the market’s increased perceived value of information security. He implemented training and certification programs, so his division was ready when the market was demanding of such services: FIPS 199-201 (government), HIPAA (healthcare), Sarbanes-Oxley Act (public corporations), and IP/IPSec (mobility, cloud, internetworking and communications). The southwest division encompassed southwestern USA, Mexico, Central America and Colombia. Mr. Brimer holds eight (8) Masters degrees from the University of Texas and two (2) Bachelor degrees from Texas A&M University.

  • Alejandro Castañeda

    Mr. Castañeda is a manager in the Audit and Enterprise Risk Services practice of Deloitte & Touche LLP. He has extensive experience serving audit clients primarily in the energy and real estate industries. Within the energy industry, Mr. Castañeda has primarily focused on midstream oil and natural gas companies. Within the real estate industry, Mr. Castañeda has primarily focused on hospitality/hotel companies. He is a member of the American Institute of Certified Public Accountants and is licensed to practice in the state of Texas. He is a graduate from Baylor University and is fluent in Spanish.

  • Theodore E. Day

    Dr. Day is Professor of Finance at the University of Texas at Dallas, where he teaches courses in corporate finance and portfolio management. Prior to joining the UTD faculty in 1990, he held faculty positions at Vanderbilt University and at the University of North Carolina. A Certified Public Accountant, Professor Day earned his M.B.A. from the University of Oklahoma and a Ph.D. in Finance from Stanford University’s Graduate School of Business. Professor Day’s research examining the impact of inflation on stock market returns, the term structure of interest rates, analysts’ earnings forecasts and the volatility of derivative asset markets has been published in academic journals such as the Journal of Financial Economics and the Journal of Finance. In addition, he is a co-author of Taxes, Financial Policy, and Small Business, a monograph funded by a grant from the Small Business Administration.

  • *Andrew B. Derman

    Mr. Derman is a Partner and head of International Energy Practice Group for Thompson & Knight LLP and Chairman of Thompson & Knight Global Energy Services. He represents public and private companies and host governments in their strategic design, commercial execution, negotiations, contract preparation, and legal interpretation. Recent experience includes: acquisition and divestment efforts in North America, South America, Europe, Africa, Asia, and Australia; international financing matters; commercialization of natural gas, including LNG and GTL; the full-range of host government contracts and industry contracts, including production sharing contacts, service contracts, operating agreements; offshore platform and construction and installation tenders; lifting agreements; the start-up and winding-up of overseas operations; deep water operations; Foreign Corrupt Practice Act and similar OECD advice; sanction advice; in-house and industry oil and gas seminars; unitizations; transnational pipelines; litigation and arbitration; acting as an advocate, expert witness and as an arbitrator. Mr. Derman was with Oryx Energy Company and Sun Company, Inc. (predecessor of Oryx Energy Co.) for 20 years; he designed and implemented worldwide business/commercial strategies, including acquisitions, divestments, trades, alliances and host government negotiation. In addition, he managed the international exploration program, the technology group, the reservoir administration function, procurement and material management, corporate environmental oversight and the exploration and production planning function. Education: Insead Advanced Management Program, Fontainebleau, France (1991); Temple University Law School, J.D. (1978); Law Review (1976-78); National Moot Court Advocate (1977); New York University, B.A. (1974); Justinian Honor Society; graduated at age 20. Admitted to and a member of the State Bar of Texas, Pennsylvania and New York. Board certified by the Texas Board of Legal Specialization in the field of Oil, Gas and Mineral Law. He has an AV Rating by Martindale-Hubbell. He is a frequent speaker at conferences and universities worldwide and has published five books and more than 50 articles.

  • *Peter D. Gaffney

    Mr. Gaffney, a chartered engineer and geologist, is a graduate of the Royal School of Mines, Imperial College, University of London. Previously with Gaffney, Cline and Associates, an international petroleum management and technical advisory firm, of which he was a founding partner he is now an independent adviser to the industry. He has worked in most of the world’s petroleum provinces and focuses on strategic management issues and the integration of surface and subsurface operations. A former president (1996) of the Society of Petroleum Engineers, he is also a fellow of the Geological Society, the Institute of Energy, the Institute of Gas Engineers and the Institute of Data Processing and a member of the American Association of Petroleum Geologists.

  • *Kevin Green

    Mr. Green is a Partner with Ernst & Young, LLP and is responsible for International Accounting and Auditing Issues in the Dallas, TX office.

  • *Charles F. Hazzard

    Mr. Hazzard is the retired executive vice president–administration for Occidental Chemical Corporation (OxyChem). He was responsible for human resources, public and government relations, and key productivity improvement initiatives for Occidental Petroleum’s (Oxy)chemical operations. Mr. Hazzard joined OxyChem in 1983 as senior vice president-administration along with Dr. Ray R. Irani (Oxy Chairman and CEO for 21 years until 2011), having left Olin Corporation, to help turn OxyChem profitability around. At Olin for ten years, Mr. Hazzard was vice president-human resources and administrative services and held a number of managerial positions with Olin, Citicorp and Ford in compensation, benefits and employee relations. He holds a B.A. degree from the University of Notre Dame and an MBA from the Wharton School of Business at the University of Pennsylvania. Mr. Hazzard is currently a Clinical Professor and Director of the Center for International Accounting Development at the UT Dallas Jindal School of Management. He holds the 2010-2011 President’s Outstanding Teaching Award for UT Dallas.

  • Seung Hong

    Mr. Hong is a Senior Manager with Ernst & Young LLP and is a member of the firm’s Southwest IFRS training team. In addition, he has served a variety of different audit clients includ¬ing Trinity Industries, HeidelbergCement, Container Stores, Francesca’s and Texas Industries.

  • Kyle Liner

    Mr. Liner is a Senior Manager with PricewaterhouseCoopers LLP in Dallas, Texas. Mr. Liner received a Bachelor of Business Administration in Accounting and a Master of Science in Finance from Texas A&M University. He has experience with audits of large multinational companies with an emphasis on the oil and gas industry. He currently serves as the lead Senior Manager responsible for the audit of Exxon Mobil Corporation. Mr. Liner completed a tour of duty in Budapest, Hungary between 2008 and 2010 where he worked with subsidiaries of U.S. public companies and shared service centers. Mr. Liner is a Certified Public Accountant and a member of the American Institute of Certified Public Accountants.

  • John Ly

    Mr. Ly is a Senior Associate with PricewaterhouseCoopers LLP in Houston, Texas. Mr. Ly received a Bachelor of Business Administration in Accounting and a Master in Professional Accounting at the University of Texas at Austin. He has experience with audits of large multinational oil and gas companies with an emphasis on the upstream sector and is currently on the audit of Royal Dutch Shell plc. Mr. Ly is a Certified Public Accountant and a member of the American Institute of Certified Public Accountants.

  • *John McNamara

    Mr. McNamara is an assurance partner with PricewtaerhouseCoopers LLP in Dallas, Texas with over 24 years of experience serving multinational public companies. He has extensive experience with mergers and acquisitions, public offerings and reporting on internal controls. He previously worked in the Houston and San Francisco offices where he served a wide range of multinational oil and gas companies, including Chevron, XTO Energy, Marathon, Shell, PetroChina, Santa Fe Energy, and Union Texas Petroleum. Mr. McNamara is a Certified Public Accountant and a member of the American Institute of Certified Public Accountants.

  • Brigham McNaughton

    Mr. McNaughton is Manager in PwC’s Sustainable Business Solutions practice. He has many years of experience helping companies shape their sustainability and environmental strategies. Brigham has served clients in the automotive, energy, utility, financial services and technology industries, advising on core sustainability strategy development based on quantitative analysis and stakeholder engagement using accepted frameworks such as the Global Reporting Initiative. He is a Certified Public Accountant and has experience with financial and non-financial audits and filing for sustainability related credits and incentives. He was a subject matter specialist for the Carbon Disclosure Project assisting with the preparation of the S&P 500 reports and a named contributed to the WRI / WBCSD Corporate Value Chain and Product Life Cycle Accounting and Reporting Standards. He holds a BS degree in Business Management, concentration in accounting, from the University of Maine and was a graduate of their Honors College where he was a Presidential Distinguished Scholar. He is a member of the American Institute of Certified Public Accountants.

  • Brad McPhail*

    Mr. McPhail is an International Tax Partner with KPMG. Brad’s professional career has focused on advising large multinational enterprises on their US domestic, US international and cross-border tax issues with respect to specific transactions or strategies. Additionally, his experience includes cross-border financ¬ing and repatriation planning projects. Mr. McPhail has spent considerable time overseas and served in the firm’s Paris office where he advised on US tax mat¬ters. He is frequently a speaker at inter¬national tax conferences and has previously taught international tax courses on behalf of academic and governmental institutions.

  • Andrew Melsheimer

    Mr. Melsheimer is a Partner in Thompson & Knight’s International Energy Practice Group, Andrew focuses on oil and gas-related matters, including cross-border transactions, investment projects, and strategic commercial and business advice. His experience includes acquisitions, divestments, trades, and mergers; exploration, development, and production matters; and anti-corruption (FCPA) and economic trade sanctions. Andrew also assists clients in their dispute resolution matters and negotiations, which have been before federal and state courts in Louisiana, Texas, and New York as well as domestic and international arbitration panels. He is a Council Member of the International Law Section of the Texas State Bar, an Advisory Board Member for the Institute of Transnational Arbitration and the Institute for International and Comparative Law at CAIL, a member of the Association of International Petroleum Negotiators’ Farmout Agreement Revision Drafting Committee, Board Member of the North Dallas Chamber of Commerce, and Chair of the International Section of the State Bar of Texas.

  • *Dan A. Odom

    Mr. Odom is an Audit Partner in the Dallas, TX office of Deloitte & Touche LLP. He serves as Engagement Partner on exploration and production, gas transmission and gas distribution companies and has extensive experience in Securities and Exchange Commission related issues. Mr. Odom is a member of the American Institute of Public Accountants, The Texas Society of Certified Public Accountants, and Council of Petroleum Accountants Societies, Dallas.

  • Anslem Oshionebo

    Mr. Oshionebo is a Senior Manager in the Assurance North Texas practice and has extensive experience in audit and advisory services. He has been involved in providing audit services to both SEC and private large oil and gas companies including engineering and construction companies. He assisted several oil and gas companies in the implementation and design of Sarbanes-Oxley controls.

    Prior to moving to the Dallas office, Anslem did a rotation with the Assurance National Professional Services Group where he worked directly with the National office leaders on monitoring and coordinating regulatory developments (including, SEC, PCAOB and FASB) impacting the profession, writing thought leadership materials and consulting on complex matters related to revenues. He was also involved in consultations with companies on a variety of complex issues, including revenue recognition, equity instruments, leases, business combination and consolidation. Anslem has led several teams in successful design, evaluation and test of an internal controls framework including processes over revenues and receivables, and business combinations. In addition, he has worked on designing several firm training materials and instructed several trainings, including those covering different aspects of auditing and accounting for revenue recognition and industry specific matters. Anslem Oshionebo obtained a Masters in Professional Accounting from Seton Hall University. He is a Certified Public Accountant and a Certified Fraud Examiner.

  • Paul Parette

    Mr. Parette is a Partner with more than 22 years of experience at Deloitte & Touche. Mr. Parette has served clients in a variety of industries including petroleum refining & marketing, oil and gas exploration and production, oil and gas transportation, energy service, power generation, hospitality, publishing, internet service providers, telematics, professional services, transportation, and manufacturing. Mr. Parette is a member of the American Institute of Certified Public Accountants, The Texas Society of Certified Public Accountants and as a Certified Public Accountant, he is licensed to practice in Arkansas, Oklahoma, Louisiana and Texas.

  • Ross Roark

    Mr. Roark is a Manager with PricewaterhouseCoopers LLP in Dallas, Texas. Mr. Roark received a Bachelor of Business Administration in Accounting and a Master of Science in Finance from Texas A&M University. He has experience with audits of large multinational companies with an emphasis on the oil and gas industry. He currently serves public and private clients in the midstream and upstream sectors of the petroleum industry. Mr. Roark is a Certified Public Accountant and a member of the American Institute of Certified Public Accountants.

  • Alessio Saretto

    Dr. Saretto joined the Jindal School of Business in 2012. Previously he held appointments at Purdue University and the University of Texas at Austin. He holds a PhD in Finance (UCLA) and one in Applied Mathematics (University of Brescia, Italy). Professor Saretto’s expertise is in financial derivatives and structure finance, with particular accent to credit risk and risk management. He has published articles in several top tier peer-review journals including the Journal of Financial Economics and the Review of Financial Studies.

  • Anastasia Shcherbakova

    Dr. Shcherbakova is a Clinical Assistant Professor of Finance and Managerial Economics at the Naveen Jindal School of Management, at the University of Texas at Dallas. Dr. Shcherbakova is an applied economist, specializing in energy economics, market regulation, and energy and financial risk. She is currently leading the development of a new graduate program in Energy Management at UT Dallas and teaching courses in energy economics and finance. Her recent academic research projects have included studying the effect of increased renewable integration on system costs in South Korea’s electricity markets, detecting domestic policy biases in investor perceptions of energy assets, assessing the role of lobbying donations in safety and health outcomes of U.S. coal mines, and evaluating shipping inefficiencies in the global liquefied natural gas industry. Dr. Shcherbakova holds a PhD from the University of Chicago. Prior to her appointment at UT Dallas, Dr. Shcherbakova was an Assistant Professor at the Department of Energy and Mineral Engineering at Penn State University, where she conducted energy-related economic research and taught graduate and undergraduate courses in energy economics and energy finance.

  • Michael Stockham

    Mr. Stockham is a Partner in the Dallas office of Thompson & Knight LLP. He has litigated numerous cases involving detailed issues of fraud. He focuses his complex business litigation practice on corporate and shareholder rights, director and officer litigation, securities litigation, class actions defense, merger litigation, partnership disputes, white collar criminal defense, and representation before government agencies such as the Securities and Exchange Commission. He has also participated in internal investigations arising from Sarbanes-Oxley and the Foreign Corrupt Practices Act. Mr. Stockham earned his law degree, with honors, in 2002 from Cornell Law School, where he served as Editor of the Cornell Law Review. He has been selected for such professional honors as Texas Rising Stars® and Texas Super Lawyers®. Mr. Stockham writes frequently and is often quoted in such publications as Law360 and Compliance Week.

Introduction and Overview (3)*

An outline of the scope of the course and its instructional methods; an assessment of the changing nature and content of financial management (especially accounting) for oil and gas operations; a review of comparative financial information measurement and reporting systems around the world.

Some Background to Oil and Gas Operations, Exploration, Development and Production (6)

An introduction to some of the issues including reserves, tools, methods and background of the industry touching briefly on the occurrence, migration and entrapment of oil and gas in the reservoir; exploration and development methods; petroleum geology and reservoir engineering; production mechanics; the nature of oil and gas and some comments on the refining sector. An outline case approach to the exploration, later development and production of a field will be used to illustrate alternatives and will cover aspects of geology and production engineering integrated into economic concepts. These sessions will introduce the broad concepts affecting economics and viability from a practical view of the industry fundamentals and set the scene in particular for the adjoining sessions on International Economics of Oil and Gas as well as relating these practical aspects to other course sectors.

International Economics of Oil and Gas (6)

A practical approach to assessing the economic merits of oil and gas projects for state concerns or private industry. Following discussion on some of the economic fundamentals the sessions will focus on assessing project viability. A key aspect of these sessions will concentrate on what makes good project economics with a discussion of some of the pitfalls to be avoided. A case study will be used to put many of these individual approaches in context. The intent is to put international decision economics in the light of common sense practical petroleum- related investment in the current climate.

Oil and Gas Accounting (6)

Detailed review of accounting principles, practices and procedures relating to various phases of oil and gas operations, including: property acquisition, retention and surrender; predrilling exploration; exploratory and development drilling; impairment and amortization of capitalized costs; oil and gas production; joint interest operations, and the related financial statement disclosures. Participants will be asked to comment on their oil and gas accounting systems.

International Oil and Gas Law (9)

A review of different contractual arrangements used to explore, develop and produce oil and gas. The evolving contractual granting process will be analyzed by studying fundamentals of licenses, concessions, risk service agreements and production sharing contracts. Specific emphasis will be given to: fiscal and economic regime, work commitments, work programs, terms, government compensation and government share, use of local companies and workers, government operating companies, surrender provisions, marketing, natural gas, exchange controls, arbitration, and force majeure. As most oil and gas operations are joint ventures, joint operating agreements governing shared operations will be analyzed. Specific attention will be devoted to the: operating committee, operator authority, expenditure process, sole risk and non-consent, assignments and preferential rights. The Model Form International Accounting Procedures will be analyzed and discussed along with a typical Host Government Accounting Procedures. Participants will be asked to briefly present to the class the legal, fiscal and economic regime used in their country.

International Taxation of Petroleum Enterprises (6)

General review of taxation systems of the world; comparative international tax systems; tax treaties and their impact on international taxation; foreign tax credit-concept and application; US tax system in general, taxation of foreign operations, taxation of domestic operations by foreign persons, US taxation of oil and gas industry; taxation of oil and gas in developing countries. Participants will be asked to give a presentation on their country’s taxation system, with particular reference to oil and gas operations.

The Audit Process (3)

The auditing of operations (e.g., financial, operational and computer auditing), and internal and external audit problems of oil and gas activities; and the interrelationship with accounting principles and standards. The various international auditing standards (ISA) and their relevance for oil and gas financial management.

International Accounting Concepts and Standards (3)

An overview of the status of International Accounting Standards (International Financial Reporting Standards) and their relevance to oil and gas accounting; efforts to harmonize international and regional accounting concepts, procedures, and practices; discussion of the United States Securities and Exchange Commission’s views on International Financial Reporting Standards, considerations when registering securities with the Securities and Exchange Commission from an international viewpoint. Harmonization of financial accounting diversity.

Planning and Control of International Operations (3)

An appraisal of various planning and control issues faced in international operations; inter-country difficulties; the role of the controller; the interaction of financial planning and control issues. Case Study.

Fraud: Detection and Prevention (2)

A review of the white collar crime problem, the elements of fraud, a profile of typical white collar criminals, the most common types of fraud crimes, and indicators of fraudulent acts that the financial professional often is in the best position to detect. The course provides an overview of the fraud examination as a methodology of resolving fraud allegations from inception to disposition.

Ethics and Compliance Programs (2)

Most large companies implement a code of conduct to guide employees, officers and directors in complying with laws and regulations. The United States Federal Sentencing Guidelines defined an effective compliance program. This presentation will discuss the definition of an effective compliance program and what companies do to guide their employees.

Sustainability for Oil & Gas Operations (3)

An assessment of the socio-economic aspects included in oil and gas operations, including the accounting, auditing and reporting for environmental aspects, health and safety. The information needs for stakeholders, the groups that have a direct stake in the affairs of an organization are the focus. A sustainability index that tracks the performance of organizations reflects such broader responsibility. The governmental regulatory aspects of a national and international nature are becoming more and more significant. It furthermore deals with the human resource and ethical aspects, and the valuation and evaluation of such services.

Capital Investment Decisions (3)

This module explores the techniques utilized in analyzing capital investments in oil and gas operations. The topics covered include an overview of discounted cash flow analysis, the estimation of the appropriate discount rates for valuing future cash flows, the inter-relation relation between the internal rate of return and the net present value for a capital investment project, and the analysis of capital investment projects that provide embedded strategic options.

Financing of Operations: Principles, Practices and Analytical Tools (3)

This module examines the financial instruments that financial managers use to finance corporate operations and capital investments. The topics covered include the basic financing instruments used to raise capital, the principles and analytical tools used in evaluating the maturity mix for corporate debt, and the impact of the mix of debt and equity use to finance corporate operations on the firm’s overall cost of financing. The basic financing instruments reviewed include common stocks, bonds, commercial paper, and commercial bank financing.

Risk Management (3)

This lecture is organized in three parts. First, we discuss the basic aspects of financial derivatives instruments used for corporate hedging. Next, we discuss the circumstances in which risk management adds value to a firm’s shareholders. Finally, we present a few examples of non standard derivatives instruments which are particularly useful for risk management in the energy sector.

Turning Around an Oil Company: The Oxy Case (3)

What did it take to turn around one of the worst managed companies in the Fortune 500? How did Oxy become the oil company with the most profit per barrel? How did Oxy get to be #1 on Fortune’s 2014 “Most Admired” list for its market space? The answers center around a CEO who emphasized agility as a management style and created a culture that simultaneously emphasized safety, productivity and profitability. Going for cash flow and shrinking to improve profits were key indicators.

Econometrics (6)

Econometrics is the application of mathematics, statistical methods, and, more recently, computer science, to economic data and is described as the branch of economics that aims to give empirical content to economic relations. It is the quantitative analysis of actual economic phenomena based on the concurrent development of theory and observation, related by appropriate methods of inference. Econometrics allow analysts to sift through mountains of data to extract simple relationships. Examples of Econometrics include: (a) Innovation sustainability (b) USA decentralization into a federation of sub-countries and nation-states (c) Future economic growth of the different regions of the USA

Multi-generational workforce (3)

For the first time in history, four generations are working side by side in the workplace. We will address the 4-5 distinct work groups and perform various group activities. We will address how departments are trying to balance a generation gap of more than 50 years between the oldest and youngest employees. We will show the various skill and communication levels between generations and how culture is extremely important.

Natural gas history and regulation

This session provides a regulatory perspective of the evolution of the US natural gas industry. We outline changes in policies governing the upstream, midstream, and downstream assets of natural gas firms, and discuss how these policy changes affected natural gas pricing, including how they facilitated the emergence of a natural gas pricing hubs. We compare the US natural gas industry experience to that of Europe, and examine the historic and future potential for regional pipeline and LNG trade.

The US shale revolution and LNG export debate

This session presents an overview of the US shale industry, including the economic, regulatory, and legal developments that have allowed it to thrive. We discuss the effect of US shale oil and gas production on commodity prices, changes in the US energy portfolio, environmental outcomes, and geopolitical relationships. We also outline and evaluate economically popular arguments in support of and in opposition to shale development, and examine potential challenges the industry may face in the future.

Case Studies (6)

A case study will be chosen pertaining to current issues in the Oil and Gas Industry. Participants will be divided into teams and asked to present on the various questions / issues involved. Specific instructions will be given to Participants during the first class session.

Class Format

Discussions

Participants have said that participation in class discussions greatly benefited them. We urge students to be prepared to participate actively in these discussions. In particular, students should be prepared to discuss the following issues as they relate to their own countries:

  • Accounting principles, standards and procedures, and audit regulations especially pertaining to oil and gas operations
  • Taxation for oil and gas operations, including: classification of major expenses for tax purposes such as bonus, seismic, geological and geophysical, intangibles, drilling cost, equipment; treatment of interest to related party and third party; treatment of inter-company charges for services, overhead, etc.; income based on sales or formula; method of tax computation; and whether there can be gain on transfer to third party (farm-out)
  • Legal aspects concerning oil and gas exploration, production, arrangements for exploration and marketing
  • Code of ethics, and laws regarding unethical business practices

All reading materials for the first two weeks of classes are provided the first day of class. These materials are taken to the hotel and only the material needed is brought to class each day. Participants are advised in the weekly review sessions about assignments and materials needed for the next week.

Preparation

Participants need to spend part of each weekend reading and studying for the next week's classes. More is gained from the course if materials and cases are read in advance of each course session.

Presentations

Participants are asked to give short presentations concerning issues in their countries (refer to Discussion, above). Participants should bring materials related to these topics with them (i.e., regarding accounting, auditing, legal and taxation issues) and may have examples of economic, technical or financial feasibility studies they might share with other students. One of the most valuable aspects of the program is the exchange of experiences and ideas among participants and faculty. All participants should come prepared to contribute.

Quizzes

Quizzes are scheduled at the end of some of the sessions. Participants are expected to be prepared for these short examinations.


Class Guidelines

Attendance

Attendance at each session is mandatory for all participants. If a participants must miss a session, a note explaining the circumstances which prevented their attendance is required.

Certificates

This program does not offer a degree or a diploma, A certificate is issued for completion of the course. It is based upon satisfactory participation in classes and satisfactory performance on the quizzes.

Course materials

Primary course materials are given out the first day of classes including all books and handouts. Additional course materials will be distributed throughout the program.

Evaluations

Upon completion of each session, participants are asked to evaluate each instructor. These evaluations help in planing next year's program.

The following is the result of the general election of officers for the 2014-2015 term held in Richardson, Texas during the 2014 Advanced International Program in Oil and Gas Financial Management.

Officers

Secretary General
L. Nelson
Deputy General Manager
ONGC
Finance & Accounts
Assam Asset, ONGC Colony
Sivasagar 785 640 India
Email

Deputy Secretary General
Tedy Rusdi
Operation Tax Analyst
PT Pertamina EP
Menara Standard Chartered 28th Fl
Jl Prof Dr Satrio No 164
Jakarta Selatan Indonesia
Email

Regional Representatives

Africa
Alfred Yekko Satya Muban
Team Leader
Uganda Revenue Authority
Quality Assurance and M&E Integrated Tax System
Nakawa Business Park
PO Box 7279
Kampala Uganda
Email

Americas
Martin Lichtman
Administrative Supervisor
Pluspetrol
5599 San Felipe Suite 1000
Houston, Texas 77056 USA
Email

Asia Pacific
Majid Latif Bhatti
Senior Management Accountant
Polish Oil & Gas Company (Pakistan Branch)
House No. 2, Street 40, Sector F-6/1
Islamabad Pakistan
Email