Description

Topics Covered

• Overview of Joint Venture
  • Operational and Financial Drivers and Types of Agreements
• Agreements
  • Types Used in Joint Ventures & Accounting Procedure Relationship to Governing Agreement
• Historical Perspective on COPAS Accounting Procedures
• Dissecting a COPAS Accounting Procedure
• Direct vs. Indirect Costs
  • Accounting Procedure Language and Proper Charging
• Overhead
  • Development, Drilling, Production, MCO & Catastrophe
• Materials
  • CEPS, Casing & Tubing, Controllable vs. Non-controllable
• Special Joint Venture Adjustments
  • Non-consents, payouts, well pad adjustments
• Allocations
  • Accounting for Costs Benefiting Multiple Properties
• Joint Interest Billings
  • AFE and Operational Costs
• Accounting for Joint Venture Costs
  • Key alternatives, Application

Course Objectives

Upon completion of the course, you will be able to:

1. Identify and explain key joint interest agreements and ownerships
2. Analyze the different agreements for joint ventures in the oil and gas industry
3. Evaluate the major provisions of COPAS Accounting Procedures and how such accounting procedures have evolved over time
4. Apply concepts to properly analyze and account for costs onto a joint interest invoice
5. Explain the differences between direct and indirect costs and their effect on JI billing
6. Demonstrate the differences and procedures for overhead calculations with respect to various COPAS accounting procedures
7. Determine tangible equipment pricing in relation to accounting and reconciliation procedures to identify charges to the joint venture
8. Recognize unique joint interest accounting situations and apply concepts learned in determining when special JV adjustments apply
9. Explain key accounting alternatives to allocate costs to multiple joint ventures
10. Identify the proper accounting entries for various joint venture transactions
11. Apply key accounting controls to ensure financial and accounting control over transactions