RGU: RGU Module: International Oil & Gas Accounting (BSM156)

Module Title
International Oil & Gas Accounting

Keywords
Petroleum, Oil, Gas, Accounting, Regulation, Risk, Joint Ventures, Decommissioning, Full Cost, Successful Efforts, Reserves, Reserve Recognition Accounting

Reference

BSM156

SCQF Level

SCQF 11

SCQF Points

ECTS Points

7.5

Created

April 2010

Approved

August 2010

Amended

Revision No.

Prerequisites for Module

None in addition to course entry requirements or equivalent.

Corequisite Modules

None.

Precluded Modules

None.

Aims of Module

To provide students with the skills and knowledge to understand and critically evaluate the reporting practices of international upstream oil and gas exploration and production companies.

Learning Outcomes for Module

On completion of this module, students are expected to be able to:

1.	Understand the accounting entries required for the different phases of the activities of international oil and gas exploration and production companies.
2.	Critically evaluate the full cost, successful efforts and reserve recognition accounting methods that could be used to underpin the preparation of accounts for international oil and gas exploration and production companies.
3.	Understand the risks that characterise the activities of international oil and gas exploration and production companies and to be able to critically comment upon the consequences of those risks for the preparation of international oil and gas companies’ financial statements.
4.	Understand and critically discuss the issues arising in setting an international accounting standard for the oil and gas industry.
5.	Analyse and critically comment on the published financial statements of international oil and gas exploration and production companies.

Indicative Module Content

Introduction to oil and gas accounting. Brief history of the development of the world-wide accounting regulatory framework within which international oil companies operate. Different phases of activity for an exploration and production (E&P)oil company and related accounting treatments in each phase. Full cost and successful efforts methods. Reserve recognition accounting. Specific risks facing E&P companies on the reporting of activities. International accounting standards. Issues facing the international accounting standards board in setting a comprehensive accounting standard for the oil industry. Work of the oil industry finance association. Latest developments in the accounting area and reference to research papers. Analysis of published financial statements of oil companies.

Indicative Student Workload

Contact Hours	Full Time
	36
Directed Study
	36
Private Study
	78

Mode of Delivery

This is a lecture-based module supplemented with tutorials/workshops and directed study.

Assessment Plan

	Learning Outcomes Assessed
Component 1	1,2,3,4,5

Component 1 is assessed by a closed book examination.

Indicative Bibliography

1.	WRIGHT, C.J. and GALLUN, R.A., 2005. International petroleum accounting. Tulsa, OK.: PennWell.
2.	GALLUN. R.A. et al., 2008. Fundamentals of oil and gas accounting. 4th edition. Tuilsa, OK.: PennWell.