To make this website work, we log user data and share it with processors. He is also known for his ability to bring potential oil and gas fields from survey stage to operation and production in a short time period, and he has many important connections in the industry. Accounting for oil and gas exploration costs The accounting method used by YJ to account for oil and gas exploration costs is to capitalise all costs of exploration that lead to the successful generation of oil and gas fields. Free starting a business books Free management skills. Appointment of competent employees to manage activities. It is clear from the interest rates above that the lender of the loan funds and the bank providing the overdraft saw similar levels of risk as the interest rates charged on the loans were similar. Some recommended auditing guidance to detect such manipulation were given at the end.
However, they both find dealing with some members of the government of the African and Asian countries, which own the on-shore and off-shore land, difficult and at times ethically challenging. As such the above items are known as critical success factors in the industry. This target can be motivated by a preference for more stable earnings, in which case management is said to be carrying out income research paper on basketball history. A PSA licence is where the government will take an agreed negotiated percentage share in the profits generated by the production of oil and gas, i. Many of these companies, although retaining the production licence, outsource the entire production operation.
It is often difficult to determine whether a particular oil and gas company has been selected due to its competitive bid, its competence, or whether it was due to the relationship with a government official.
Orca Exploration Group Inc.
This typically occurs when the contracted volumes of oil and gas are delivered to the port in the country agreed in the contract of sale. Each country around the world owns the mineral rights to all gas and oil below ground or under the sea within its territorial waters. Financial management is essential. The rising demand for natural gas, particularly from Asia, may push up natural gas prices. This is a commonly used form of licensing where the government will syudy an agreed negotiated percentage share in the profits generated from the production of oil and gas.
YJ ane need to either secure additional equity or loan finance if it is granted any other licences, or it may be able cwse use some of its cash generated from operations. Complying with increasingly complex regulatory and reporting requirements.
Oil is being extracted in increasing volumes and is vital to many industries for maintaining industrial growth and for nearly all forms of transportation. This involved obtaining the required licences, test drilling and then proceeding through to production drilling oiil these three locations.
It is one of the few markets in the world where this is true. The level of profits in the year ended 31 March were sufficiently high for the remaining tax losses to be used up, resulting in a small tax challnege in the last financial year.
Preliminary Results for the year ended 31 march Portsmouth Water Limited, a supplier of water to Hampshire and West Sussex, announced its results for the year to 31 March This is boepd multiplied by days to calculate annual volumes. This case study is concerned only with upstream operations and some basic vusiness of oil and gas by tankers to port within the oil and gas industry.
CIMA Global Business Challenge. Case Study. YJ – Oil and gas industry
Examine the multinational company BP Author: You are allowed 20 minutes reading. Cutting oil consumption further will prolong the life of global oil reserves. This includes four oil and gas fields in Asia and Africa for which YJ has applied for licences to test drill.
The oil and gas fields are treated in the Statement of Financial Position as long-term assets. CCC was brought into production in early April Selecting, appointing and effectively managing competent outsourced contractors.
CIMA Global Business Challenge. Case Study. YJ – Oil and gas industry – PDF
Bandwidth Limit Exceeded There have been extensive studies trying to determine the case structure for kil oil. The exodus from the industry is only going to exacerbate that problem. Allenby Capital Limited More information.
The by-products include gasoline, diesel and a variety of other products. Natural gas reserves are estimated to last for over 60 years at the current global rate of consumption. Jason Oldman Director of Legal Affairs Jason Oldman, aged 39, is a qualified lawyer with 12 years experience in the energy sector.
These companies play a vital role in the oil and gas exploration and production industry. Of the remaining employees of YJ, there is a small specialised team which works on licence applications and the rest are involved with the management and supervision of operations at YJ s three current operational oil and gas fields.
Yj oil and gas industry case study – Oil & Gas Industry – Term Paper
Lee Wang, Director This is the end of the preview. The royalty and licence costs are included in the cost of sales in the Profit or Loss Statement. He indutry YJ four years ago when its first oil field was licensed and ready to be drilled.
This had been forecast to grow at a higher rate than has actually occurred in recent years. To date, YJ has been successful in identifying and bringing into production three oil and gas fields.