Environmental Audits and Inspection in the Upstream Oil and Gas Facilities

Course Length: 5 days

Course Dates: TBC

Course Description

The oil and natural gas industry comprises the processes of exploration and extraction (known as the upstream activities), refining and transporting (midstream) and marketing (downstream) of petroleum products. Each of these processes has an adverse impact on the environment. This course will provide participants with an understanding of the principles and practices applied in auditing activities undertaken in the upstream oil and gas industry. Extensive use will be made of realistic industry-based exercises and case studies to reinforce key teaching points and to provide participants with opportunities to apply the knowledge gained in a practical manner. Participants will also learn how to develop and apply a structured methodology for conducting upstream oil industry joint venture and Production Sharing Contracts (PSC) audits.

 Who should attend

• External auditors dealing with oil and gas companies or those considering moving into such roles
• Internal auditors who work within oil and gas companies.
• Management and Financial staff within such organizations that deal with the external audit process or who would like a better understanding of how the auditors go about their work.
• Staff who are new to the discipline of audit, experienced audit practitioners who wish to update the skills, personnel from any discipline who are involved in internal audits, joint venture audits, or PSC audits, and personnel with a background in statutory audit in the accounting profession who require an understanding into the specialized area of upstream auditing.

What you will Learn

• Understand the role of the external and internal auditor and the confidence they give to investors in oil and gas companies
• Understand how oil and gas companies work and the associated risks connected with such companies
• Understand the importance of communication with the client, the audit team, and possibly with regulators in a whistle-blowing situation
• Understanding how fraud can impact an audit and the auditors’ responsibilities in this respect
• Gain a thorough understanding of the fieldwork required in all areas of the audit file and typical problems and issues
• Understand the audit completion process
• Understand how the audit opinion is derived and communicated along with weaknesses found during the audit process

Course Outline

Day 1 – Understanding Oil and Gas Companies

• Oil and Gas Companies – understanding the industry and the risks
• Oil and gas value chain and significant accounting issues
• Upstream, midstream and downstream activities
• Laws and Regulations
• Emerging Risk Areas

Day 2 – Revenue, Joint Ventures and Reserves

• Revenue Recognition – contracts
• Auditing Shutdown Management
• Auditing Joint Ventures
• Auditing Outsourced Operations
• Due Diligence Programs on Third Parties
• Reserves Reporting Issues