CIMA GLOBAL BUSINESS CHALLENGE CASE STUDY YJ – OIL AND GAS INDUSTRY

Therefore, costs can be identified by cost type, and also by each area within a survey area, test drilling location or an operational oil and gas field. YJ – Oil and gas industry”. All of the drilling and exploration costs associated with oil and gas fields that are unsuccessful and will not go into production are written off in their entirety. Farm-out is defined as assigning or selling an interest in a licence to another oil and gas production company. Are you ready to float? The company has an authorised share capital of 50 million shares. The market was unhappy at the write-off of drilling costs for the oil and gas field DDD, but one failed oil and gas field is deemed to be an acceptable risk in this sector.

This has become all the more difficult with the emergence of new players like China becoming significant in the oil market. Managing the risk of oil and gas exploration which results in an unsuccessful oil or gas field that cannot be taken into production. This is because, like other capital equipment, the oil and gas reserves are considered to be long-term productive assets. Many of these companies, although retaining the production licence, outsource the entire production operation. Its operating expenses are incurred in a range of European, African and Asian currencies, and therefore it is exposed to the impact of currency fluctuations. Considering sustainability issues oil and gas are finite resources. 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.

Cutting oil consumption further will prolong the life of global oil reserves. YJ can always sell its oil and gas, and it is usually sold before the oil and gas is shipped ashore. The sales can generate a large More information.

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First Quarter highlights: To make this website work, we log user data and share it with processors. This had been forecast to grow at a higher rate than has actually occurred in industryy years.

Essay – Words The exodus from the industry is only going to exacerbate that problem. In this industry knowledge carries value.

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.

The investors are casd large institutional investors. Money in notes banknotes and coins is called cash. This is normal in this industry.

Yj oil and gas industry case study – Oil & Gas Industry – Term Paper

After running the regression and comparing statistics with other oil and gas industries, we found that the sample companies do revise oil reserves to manipulate the DDA studies, thus achieving their goals of gas management. Where possible, YJ uses a range of hedging techniques to minimise its currency exposure.

If shareholders pay more than the par value to a company to buy new shares then the excess is known as a share premium. Operating companies – these hold the exploration and production licences and operate production facilities. In order to satisfy all of its shareholders and other stakeholders, YJ always considers the implications of its actions and CSR is incorporated into its management systems and procedures.

Midstream this involves the transportation of oil by tankers around the world and the refining of crude oil.

cima global business challenge case study yj - oil and gas industry

Earnings management involves the manipulation of company earnings towards a pre-determined target. The Role of Financial Planning: Milo Purdeen Director of Exploration and Jason Oldman Director of Legal Affairs have worked closely to meet all of the requirements of the licence applications for the four identified potential oil and gas fields.

Therefore, the length of time that oil reserves will last is expected to exceed 40 years. He has experience in farm-out arrangements in the oil and gas industry.

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CIMA Global Business Challenge. Case Study. YJ – Oil and gas industry

These look like ships but are positioned at oil and gas production sites for years at a time. Its operating expenses are incurred in a range of European, African and Asian currencies, and therefore it is exposed to the impact of currency fluctuations. Summary of significant accounting policies However, he suffered very serious ill health in December and decided to retire in April Most large international oil and gas companies are known as being “integrated” because they combine upstream activities oil and gas exploration and extractionmidstream transportation and the refining undustry and downstream operations distribution and retailing of oil and gas products.

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cima global business challenge case study yj - oil and gas industry

Only one potential oil and gas field, DDD, was established to be far iol than had been originally estimated and was not considered economic to take into production. No investigation into financial accounting principles is required.

Allenby Capital Limited More information.

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This is natural gas volumes expressed in the equivalent volume of a barrel of oil. These reserves exclude contingent resources of oil and gas.

cima global business challenge case study yj - oil and gas industry

RTGone of the UK s leading recruitment. This case study is concerned only with upstream operations and some basic transportation of chxllenge and gas by tankers to port within the oil and gas industry. Corporate Governance Statement current as at 30 June The Board of Directors are responsible for the overall strategy, governance and performance of Coventry Resources Inc.