Upstream and midstream operators across the GCC face the most technically demanding accounting in any industry. Joint-venture accounting, reserve-based depreciation and decommissioning provisions are areas where a single policy choice can move reported earnings by hundreds of millions.
In oil and gas, the standards are unforgiving and the dollar amounts are enormous. The finance function operates at the intersection of standards-setting and regulation — with very little room for interpretation errors.
Cost recovery pools, profit-oil splits, cash calls, JIB statements and partner audits are governed by the JOA or PSC, not just standard accounting.
Successful-efforts versus full-cost methods can determine whether dry holes hit the P&L or remain on the balance sheet as intangibles.
Asset-retirement obligations under IAS 37 are sensitive to discount rates, cost estimates and technology assumptions.
Commodity-price swaps, collars and hedges need proper designation and documentation to avoid unnecessary P&L volatility.
Five accounting bottlenecks that create material risk in UAE and GCC oil and gas finance functions.
Misallocation between recoverable and non-recoverable costs can create material partner-audit adjustments years after the fact.
E&E policy choices affect dry-hole treatment, impairment testing, reserve-based depreciation and reported earnings.
Outdated ARO assumptions can understate liabilities and overstate net assets when cost or discount-rate assumptions change.
Crude, condensate, take-or-pay contracts and host-government royalties create revenue timing risks if not managed systematically.
Economic hedges may still create earnings noise if they are not formally documented and designated for hedge accounting.
A complete accounting, tax and advisory function built around the way oil and gas businesses actually work.
We implement JV accounting modules, JIBs, partner statements, cost-recovery schedules, reserve-based depreciation and clear capex classification.
We manage natural-resource-business carve-outs, emirate-level tax interaction, VAT on NOC services, transfer pricing and ESR reporting.
We prepare IFRS-compliant financials with reserve disclosures, decommissioning sensitivity analysis and hedge-accounting documentation.
We support break-even analysis, Brent-price scenarios, hedge strategy, partner-audit defence and equipment-utilisation reporting.
Tell us about your oil and gas business, JV structure, reporting requirements and current finance challenges. We’ll come back to you within one working day.
