scholarly journals KEY ISSUES OF ACCOUNTING FIXED ASSETS MANAGEMENT OF OIL AND GAS ENTERPRISES: ANALYSIS OF FEATURES, COMPOSITION AND VALUATION

2019 ◽  
pp. 76-87
Author(s):  
Sofia KAFKA
Keyword(s):  
Natural Gas ◽  
Crude Oil ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Fair Value ◽  
Economic Benefits ◽  
Gas Industry ◽  
Gas Drilling ◽  
Fixed Assets ◽  
Key Issues

The article deals with the key issues concerning the system of security of fixed assets at the enterprises of the oil and gas industry. The purpose of the article is to investigate the fixed assets features and composition at the the enterprises of oil and gas industry, to determine the approaches to their assessment at the stage of their receipt by the enterprise. The state, dynamics of value and the degree of depreciation of fixed assets in Ukraine for the year 2017 have been analyzed, their features have been distinguished at the enterprises of different branches of the economy. To ensure the effective operation of the enterprises of the oil and gas industry, significant assets are required, and the results of their activities to a large extent depend on the availability and condition of fixed assets that ensure economic sustainability of economic entities. Oil and gas companies include pipelines and related equipment in fixed assets, oil and gas assets, machinery and equipment, buildings, buffer gas, drilling and reconnaissance equipment and other fixed assets. Among the assets of NJSC "NAFTOGAZ OF UKRAINE" for the year 2017, non-current assets occupied 86% of the total assets of the company, of which 94% were fixed assets, what determines the reliability of their accounting as an important element of effective management of enterprises. The dynamics of value and composition of fixed assets of enterprises of the oil and gas industry of Ukraine for 2016-2017 have been determined according to separate economic segments. The cost of fixed assets of NJSC "NAFTOGAZ OF UKRAINE" as of December 31, 2017 amounted to UAH 491 482 million, respectively, according to economic segments, it is structured in such a way that their largest share is concentrated in the system of transportation and distribution of natural gas - almost 48%, for storage of natural gas - 34%, production and sale of natural gas - 12%, and the rest belongs to the economic activities related to oil: the production of crude oil and gas condensate, transportation of crude oil. The composition of fixed assets of extractive enterprises differs from their composition in refineries. Industrial features of mining industry with significant volumes of work related to the disclosure of layers of minerals are characteristic to chemical production with a significant cost of equipment. The main approaches to the evaluation of fixed assets objects at the stage of their entrance to the enterprise have been investigated. The reliability of the accounting information on fixed assets depends on their assessment. When they are received, they are valued at their original cost, that is, by the amount of cash paid or their equivalents or fair value, another form of indemnity granted to obtain the asset at the time of its acquisition or creation, or, if accepted, the amount that is distributed to that asset in the original recognized in accordance with the specific requirements of other IFRSs. After recognition, the entity should choose either a cost model or a revaluation model in its accounting policies and should apply this policy to the entire group of fixed assets. A cessation of recognition occurs after the release of an object or when it does not expect future economic benefits from its use or disposal. In this case, it is recognized as profit or loss.

scholarly journals Oil and Gas Industry Financing

1969 ◽  
Vol 7 (3) ◽  
pp. 465
Author(s):  
C. A. Rae
Keyword(s):  
Natural Gas ◽  
Crude Oil ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Oil And Gas Exploration ◽  
Exploration And Production ◽  
Oil And Natural Gas ◽  
The Common ◽  
Marketing Operations

The demand for crude oil and natural gas is constantly increasing. To keep up with this demand the oil and gas industry must spend vast sums of. money· to find new petroleum deposits to replenish the depleted reserves. Conventional financing techniques are used to finance the transportation, refining and marketing operations of the oil and gas industry, but the financing of oil and gas exploration and production requires special techniques. This paper discusses the common methods of financing the production end of the Canadian oil and gas industry.

EBITDA and DACF multipliers as an indicator of investment attractiveness of domestic vertically integrated companies

2021 ◽  
Vol 20 (4) ◽  
pp. 718-752
Author(s):  
Oleg V. SHIMKO
Keyword(s):  
Oil And Gas ◽  
Stock Exchange ◽  
Oil And Gas Industry ◽  
Financial Economic ◽  
Consolidated Financial Statements ◽  
Gas Industry ◽  
Debt Burden ◽  
Fixed Assets ◽  
Settlement Agreements ◽  
Oil And Gas Companies

Subject. The article addresses the EV/EBITDA and EV/DACF ratios of the twenty five largest public oil and gas corporations from 2008 to 2018. Objectives. The purpose is to identify key trends in the value of EV/EBITDA and EV/DACF ratios of biggest public oil and gas corporations, determine factors resulted in the changes over the studied period, and establish the applicability of these multipliers for assessing the business value within the industry. Methods. I apply methods of comparative and financial-economic analysis, and generalization of consolidated financial statements data. Results. The study revealed that EV/EBITDA and EV/DACF multiples are acceptable for valuing oil and gas companies. The EV level depends on profitability, proved reserves, and a country factor. It is required to adjust EBITDA for information on impairment, revaluation and write-off for assets that are reported separately from depreciation, depletion and amortization costs, as well as for income or expenses arising after the sale of fixed assets and as a result of effective court decisions or settlement agreements. It is advisable to adjust DACF for income, expenses and changes in assets and liabilities, which are caused by events that are unusual for oil and gas companies. Conclusions. The application of EV/EBITDA and EV/DACF multiples requires a detailed analysis and, if necessary, adjustments of their constituent components. However, they are quite relevant in the context of declining profitability and growing debt burden in the stock exchange sector of the global oil and gas industry.

Challenges of Developing Marginal Fields in the Current Climate of Oil and Gas Industry

2021 ◽  
Author(s):  
Amina Danmadami ◽  
Ibiye Iyalla ◽  
Gbenga Oluyemi ◽  
Jesse Andrawus
Keyword(s):  
Oil And Gas ◽  
Dynamic Environment ◽  
Poor Performance ◽  
Oil And Gas Industry ◽  
Economic Benefits ◽  
Gas Industry ◽  
Field Development ◽  
Quality Technology ◽  
Indigenous Participation ◽  
Marginal Field

Abstract Marginal field development has gained relevance in oil producing countries because of the huge potential economic benefits it offers. The Federal Government of Nigeria commenced a Marginal Fields program in 2001 as part of her policy to improve the nation’s strategic oil and gas reserves and promote indigenous participation in the upstream sector. Twenty years after the award of marginal fields to indigenous companies to develop, 50% have developed and in production, 13% have made some progress with their acquisition while 37% remain undeveloped. The poor performance of the marginal field operators is due to certain challenges which have impeded their progress. A review of challenges of developing marginal fields in the current industry climate was conducted on marginal fields in Nigeria to identify keys issues. These were identified as: funding, technical, and public policy. Considering the complex, competitive and dynamic environment in which these oil and gas companies operate, with competition from renewables, pressure to reduce carbon footprint, low oil price and investors expectation of a good return, companies must maintain tight financial plan, minimize emissions from their operations and focus on efficiency through innovation. The study identifies the need for a decision-making approach that takes into consideration multi criteria such as cost, regulation, quality, technology, security, stakeholders, safety and environment, as important criteria based on which to evaluate the selection of appropriate development option for marginal fields.

When Metals and Microbes Meet: Preventing Microbial Corrosion in Crude Oil Transmission Pipelines

2020 ◽  
Author(s):  
Lisa M. Gieg ◽  
Mohita Sharma ◽  
Trevor Place ◽  
Jennifer Sargent ◽  
Yin Shen
Keyword(s):  
Crude Oil ◽  
Oil And Gas ◽  
Combined Treatment ◽  
Oil And Gas Industry ◽  
Test Methods ◽  
Microbial Corrosion ◽  
Gas Industry ◽  
Chemical Treatments ◽  
Transmission Pipeline ◽  
Transmission Pipelines

Abstract Corrosion of carbon steel infrastructure in the oil and gas industry can occur via a variety of chemical, physical, and/or microbiological mechanisms. Although microbial corrosion is known to lead to infrastructure failure in many upstream and downstream operations, predicting when and how microorganisms attack metal surfaces remains a challenge. In crude oil transmission pipelines, a kind of aggressive corrosion known as under deposit corrosion (UDC) can occur, wherein mixtures of solids (sands, clays, inorganic minerals), water, oily hydrocarbons, and microorganisms form discreet, (bio)corrosive sludges on the metal surface. To prevent UDC, operators will use physical cleaning methods (e.g., pigging) combined with chemical treatments such as biocides, corrosion inhibitors, and/or biodispersants. As such, it necessary to evaluate the efficacy of these treatments in preventing UDC by monitoring the sludge characteristics and the microorganisms that are potentially involved in the corrosion process. The efficacies of a biocide, corrosion inhibitor, and biodispersant being used to prevent microbial corrosion in a crude oil transmission pipeline were evaluated. A combination of various microbiological analyses and corrosivity tests were performed using sludge samples collected during pigging operations. The results indicated that the combined treatment using inhibitor, biocide 1 and biodispersant was the most effective in preventing metal damage, and both growth-based and Next-Generation Sequencing approaches provided value towards understanding the effects of the chemical treatments. The efficacy of a different biocide (#2) could be discriminated using these test methods. The results of this study demonstrate the importance of considering and monitoring for microbial corrosion of crucial metal infrastructure in the oil and gas industry, and the value of combining multiple lines of evidence to evaluate the performance of different chemical treatment scenarios.

Nimrod XV230—reflections on leadership, culture and priorities

2017 ◽  
Vol 57 (2) ◽  
pp. 374
Author(s):  
Martin Anderson
Keyword(s):  
Oil And Gas ◽  
Health And Safety ◽  
Oil And Gas Industry ◽  
Royal Air Force ◽  
Gas Industry ◽  
Leadership Culture ◽  
Key Issues ◽  
The Uk ◽  
Organisational Factors ◽  
Independent Inquiry

On 2 September 2006 a reconnaissance aircraft Royal Air Force Nimrod XV230 suffered a catastrophic mid-air fire on a mission over Afghanistan, leading to the total loss of the aircraft and the death of all 14 service personnel. This paper summarises key issues from an independent inquiry and challenges the oil and gas industry to reflect on these. The author, a Chartered specialist in human and organisational factors, contributed to The Nimrod Review as a Specialist Inspector with the UK Health and Safety Executive.

Aboriginal employment—Chevron's journey

2015 ◽  
Vol 55 (2) ◽  
pp. 425
Author(s):  
Camis Smith
Keyword(s):  
Natural Gas ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Long Term Results ◽  
Corporate Leadership ◽  
Gas Industry ◽  
Internal Support ◽  
Employer Of Choice ◽  
Energy Companies

Advancing Aboriginal participation in the workplace comes with its challenges, and those experienced in the oil and gas industry are unique. Barriers to participation need to be regularly evaluated and addressed for success. Although Chevron Australia's focus on Aboriginal employment is fairly recent, it receives strong internal support from senior and corporate leadership. It will be important in the future to further this commitment and build ownership throughout the organisation to achieve long-term results and meet business needs and skills gaps. Camis Smith, Chevron Australia's Aboriginal Employment Strategy Manager, will share Chevron's experiences, lessons and challenges in advancing Aboriginal participation in the workplace, and reinforce its reputation as an employer of choice. Chevron is one of the world's leading integrated energy companies and through its Australian subsidiaries, has been present in Australia for more than 60 years. With the ingenuity and commitment of more than 4,000 people, Chevron Australia leads the development of the Gorgon and Wheatstone natural gas projects, and has been operating Australia's largest onshore oilfield on Barrow Island for more than 45 years.

scholarly journals Calculating the Optimum Angle of Filament-Wound Pipes in Natural Gas Transmission Pipelines Using Approximation Methods

2013 ◽  
Vol 135 (2) ◽  
Author(s):  
Mohammad Reza Khoshravan Azar ◽  
Ali Akbar Emami Satellou ◽  
Mohammad Shishesaz ◽  
Bahram Salavati
Keyword(s):  
Composite Materials ◽  
Natural Gas ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Approximation Methods ◽  
Gas Industry ◽  
Optimal Angle ◽  
Filament Wound ◽  
Composite Pipe ◽  
Natural Gas Transmission

Given the increasing use of composite materials in various industries, oil and gas industry also requires that more attention should be paid to these materials. Furthermore, due to variation in choice of materials, the materials needed for the mechanical strength, resistance in critical situations such as fire, costs and other priorities of the analysis carried out on them and the most optimal for achieving certain goals, are introduced. In this study, we will try to introduce appropriate choice for use in the natural gas transmission composite pipelines. Following a 4-layered filament-wound (FW) composite pipe will consider an offer our analyses under internal pressure. The analyses’ results will be calculated for different combinations of angles 15 deg, 30 deg, 45 deg, 55 deg, 60 deg, 75 deg, and 80 deg. Finally, we will compare the calculated values and the optimal angle will be gained by using the Approximation methods. It is explained that this layering is as the symmetrical.

The natural gas industry: equipment, materials, and corrosion

2015 ◽  
Vol 33 (3-4) ◽  
pp. 175-185 ◽  
Author(s):  
Benjamin Valdez ◽  
Michael Schorr ◽  
Jose M. Bastidas
Keyword(s):  
Natural Gas ◽  
Fossil Fuels ◽  
Oil And Gas ◽  
Saline Water ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Municipal Networks ◽  
Production Wells ◽  
Natural Gas Industry ◽  
The Usa

AbstractCorrosion is a crucial worldwide problem that strongly affects the oil and gas industry. Natural gas (NG) is a source of energy used in industrial, residential, commercial, and electric applications. The abundance of NG in many countries augurs a profitable situation for the vast energy industry. NG is considered friendlier to the environment and has lesser greenhouse gas emissions compared with other fossil fuels. In the last years, shale gas is increasingly exploited in the USA and in Europe, using a hydraulic fracturing (fracking) technique for releasing gas from the bedrock by injection of saline water, acidic chemicals, and sand to the wells. Various critical sectors of the NG industry infrastructure suffer from several types of corrosion: steel casings of production wells and their drilling equipment, gas-conveying pipelines including pumps and valves, plants for regasification of liquefied NG, and municipal networks of NG distribution to the consumers. Practical technologies that minimize or prevent corrosion include selection of corrosion-resistant engineering materials, cathodic protection, use of corrosion inhibitors, and application of external and internal paints, coatings, and linings. Typical cases of corrosion management in the NG industry are presented based on the authors’ experience and knowledge.

scholarly journals Cost and managerial accounting of joint activities related to the use of fixed assets

2018 ◽  
pp. 84-93
Author(s):  
Zenovii Zadorozhnyi ◽  
Valentyna Orlova ◽  
Sofiia Kafka
Keyword(s):  
Joint Venture ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Separate Entity ◽  
Managerial Accounting ◽  
Joint Operation ◽  
Gas Industry ◽  
Joint Activities ◽  
Fixed Assets ◽  
Joint Operations

The research paper reveals the essence of the concepts of joint activity, joint operation, and joint venture. A set of key features for classification of joint activities is identified and their impact on accounting of joint activities is assessed. The article also reviews the essential elements of accounting of joint activities in the light of International Financial Reporting Standards (IFRS), and characterizes the process of recording accounting entries related to basic operations, which depend on organizational forms of joint activities (a joint venture or a joint operation, with or without a separate entity). The paper provides a detailed description of three options for accounting of joint activities classified as joint operations, namely: joint operations without a separate entity; joint operations with a separate entity but without legal personality; a legal unit. Besides, a number of particular characteristics of measuring financial results from selling and purchasing assets within joint operations are identified. It is pointed out that one of the ways of effective use of fixed assets is promoting the implementation of managerial ac- counting of joint activities and internal reporting procedures of the results achieved. It is suggested that domestic enterprises of oil and gas industry should expand the practice of joint activities in order to effectively use fixed assets for oil and gas extraction and transportation. Before conducting joint activities, it is recommended that oil and gas industry enterprises compile initial calculations of their profitability at the level of managerial accounting. In the study, the following general and specific scientific methods of obtaining knowledge on economic phenomena are used: generalization, grouping and comparison, analysis, synthesis, induction and deduction, etc.

Sign in / Sign up

Export Citation Format

Share Document