TAX 416: Oil and Gas Accounting

Learning Outcomes

By the end of the course, students should be able to:

1. compute accounting for petroleum industry with emphasis on downstream and upstream activities;
2. explain practices and procedures relating to various phases of oil and gas operations;
3. compute accounting for crude oil refining, petro-chemical operations and liquefied Natural gas;
4. define the concept of fair value in oil and gas accounting; and
5. describe the operating contract in the petroleum industry e.g. joint venture, production sharing contract and service contract.

Course Contents

Nigeria Petroleum Industry. The differences between the downstream and upstream sectors of the industry. An overview of downstream operations in Nigeria. Accounting principles, Practices and Procedures relating to various phases of oil and gas operations. Accounting for Crude oil refining, petro-chemical operations and Liquefied Natural Gas Operations. Estimating reserves and values. The concept of fair value in oil and gas accounting. Types of operating contract in the Nigerian petroleum Industry – joint Ventures (JV), production sharing Contract (PSC) and Service Contracts (SC). Financial and Fiscal Monitoring Mechanism. Accounting Standards and Auditing in the petroleum Industry. Financial Accounting Principles practised by gas producers.