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Institute For Oil & Gas Training
OGI-1157 New

Fixed Assets & Capital Projects: Wells to Facilities Training Course

Duration
5 days
CPD hours
15
Language
English
Next date
05 Oct 2026
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Overview

Fixed Assets & Capital Projects is a specialist corporate training course from Institute For Oil & Gas Training designed to strengthen financial control over the complete asset lifecycle from wells and field development through processing, infrastructure and production facilities. The course addresses the accounting, capitalisation, depreciation, valuation and disposal challenges that arise when oil and gas organisations manage complex capital projects across upstream, midstream and downstream operations.

Oil and gas assets involve significant capital expenditure, long project lifecycles, multiple asset components, development phases and substantial volumes of supporting documentation. Accurate accounting therefore requires more than recording expenditure against a project code. Finance and asset professionals need a structured approach to distinguishing capital expenditure from operating expenditure, establishing the asset capitalisation date, maintaining an accurate asset register, determining useful life estimation and applying appropriate depreciation methods.

Institute For Oil & Gas Training delivers this programme around the practical relationship between capital projects and financial reporting. Participants examine how expenditure moves from initial project activity into work in progress and ultimately into operational fixed assets. The course addresses the accounting treatment of wells, production facilities, pipelines, processing equipment, buildings, plant and other infrastructure while connecting project controls with financial reporting requirements.

A major focus is the effective management of work in progress during long-running capital projects. Participants examine how project expenditure is accumulated, reviewed and transferred into completed assets. The programme also addresses asset componentisation, which is particularly important where different components of a facility have different useful lives, depreciation patterns or replacement cycles.

The course provides practical guidance on unit of production depreciation and its application to relevant oil and gas assets. Participants explore the relationship between production volumes, reserves, asset consumption patterns and depreciation calculations while considering the importance of consistent assumptions and supporting documentation.

Capitalisation of borrowing costs is another important area covered by the programme. Participants develop an understanding of when qualifying expenditure and financing costs form part of the cost of an asset and how the treatment interacts with the development and construction period.

The course also addresses asset transfers and disposals, including the financial and control implications of moving assets between projects, locations, business units or operating entities. Proper asset movement controls support the integrity of the asset register and reduce the risk of inaccurate depreciation, duplicated assets, unrecorded disposals or inappropriate capital balances.

The programme is structured for professionals who need to connect accounting requirements with real operational and project environments. It supports stronger communication between finance, engineering, project management, procurement, operations and asset management teams.

Institute For Oil & Gas Training uses practical oil and gas scenarios to demonstrate how fixed asset accounting decisions affect project costs, depreciation, financial statements, management reporting and asset performance information. Participants work through situations involving exploration and development expenditure, well construction, facility development, project completion, asset transfers and retirement.

The course also strengthens governance around the capitalisation process. Participants learn how clear procedures, supporting documentation, project status reviews and asset records contribute to reliable financial reporting. The result is a more controlled approach to managing the transition from capital project expenditure to operational asset accounting.

For organisations operating capital-intensive oil and gas portfolios, effective fixed asset accounting provides a direct link between financial control and investment management. This course equips professionals with the practical knowledge required to maintain accurate asset information and support disciplined capital project accounting throughout the asset lifecycle.

Objectives

  • Understand the accounting lifecycle of fixed assets and capital projects across oil and gas operations.

  • Apply appropriate principles for recording expenditure within capital projects.

  • Distinguish capital expenditure from operating expenditure using practical oil and gas scenarios.

  • Establish effective controls for work in progress balances.

  • Determine appropriate asset capitalisation dates based on project completion and operational readiness.

  • Apply asset componentisation principles to complex oil and gas facilities.

  • Develop appropriate approaches to useful life estimation for different asset classes.

  • Understand the application of unit of production depreciation to relevant oil and gas assets.

  • Apply principles for capitalisation of borrowing costs during qualifying development periods.

  • Strengthen the accuracy and completeness of the asset register.

  • Understand accounting requirements for asset transfers between projects, locations and business units.

  • Apply appropriate accounting principles to asset disposals and retirements.

  • Improve coordination between finance, engineering, procurement, projects and operations.

  • Strengthen documentation and review procedures supporting fixed asset accounting.

  • Improve the quality of financial information used for capital project monitoring and management reporting.

Training methodology

Institute For Oil & Gas Training uses a practical corporate delivery approach focused on applying fixed asset accounting principles to realistic oil and gas situations. The methodology combines structured technical presentations with case studies, group exercises, worked examples, project scenarios and practical decision-making exercises.

Participants examine capital project transactions from initial expenditure through work in progress, asset capitalisation and subsequent depreciation. This approach demonstrates how accounting treatment develops as an oil and gas project progresses from planning and construction into operational use.

Case studies focus on realistic scenarios involving wells, production facilities, processing equipment, pipelines and supporting infrastructure. Participants analyse expenditure categories and determine how each item should be treated within the capital project accounting process.

Practical exercises address asset register development, componentisation, useful life estimation and depreciation methodology. Participants review asset information and identify the accounting considerations that influence the recognition and subsequent measurement of individual asset components.

Group exercises encourage finance, project and operational perspectives to be considered together. Participants assess situations where accounting decisions depend on information originating from engineering, procurement, construction and operations teams.

Real-world scenarios are also used to examine work in progress and the transition to completed assets. Participants consider the evidence required to support an asset capitalisation date and the controls needed to prevent premature or delayed capitalisation.

The methodology incorporates scenario-based analysis of borrowing costs, asset transfers and disposals. Participants evaluate the accounting implications of project financing, internal asset movements and retirement decisions.

The course concludes each module with practical learning outcomes that connect technical accounting knowledge with workplace responsibilities. This ensures participants leave with processes and decision-making approaches that are directly relevant to their roles.

Organisational impact

Effective fixed asset accounting supports stronger control over the financial resources committed to oil and gas development. This course helps sponsoring organisations establish more consistent processes for tracking capital expenditure from project initiation through operational use.

Improved work in progress controls provide greater visibility over unfinished capital projects and reduce the risk of inappropriate balances remaining on project accounts. Clear procedures for reviewing project status also support timely movement of completed expenditure into the relevant asset categories.

A stronger asset register improves the quality of information available to finance, operations and asset management teams. Accurate asset records support depreciation calculations, asset verification, maintenance planning, replacement decisions and management reporting.

Effective componentisation improves the accuracy of depreciation where major components have different useful lives. This provides a more structured basis for recognising asset consumption and planning future replacement requirements.

Improved useful life estimation supports more consistent depreciation practices across asset classes. This is particularly relevant for oil and gas facilities where individual components operate under different conditions and have different replacement cycles.

The course strengthens capitalisation controls by establishing clearer processes for identifying the asset capitalisation date. This helps organisations align project accounting with operational readiness and supporting project documentation.

Better understanding of borrowing cost capitalisation supports appropriate treatment of financing costs associated with qualifying capital projects. Stronger processes also improve the documentation available for internal reviews and financial reporting.

Improved asset transfer and disposal procedures strengthen financial control over assets moving between projects, locations and operating units. These controls reduce the risk of duplicated records, inaccurate depreciation and assets remaining on the register after disposal.

The programme also promotes stronger cross-functional communication. Finance teams gain a clearer understanding of project and operational information, while project and engineering personnel gain greater awareness of the accounting information required to support capitalisation decisions.

For management, stronger fixed asset processes provide more reliable information for evaluating capital expenditure, project completion, asset utilisation and future investment requirements.

Personal impact

Participants develop practical expertise in fixed asset and capital project accounting within an oil and gas environment. They gain a clearer understanding of how financial records develop throughout the lifecycle of wells, facilities and supporting infrastructure.

The course strengthens participants ability to assess expenditure and determine its appropriate accounting treatment. This improves confidence when reviewing project costs, capitalisation decisions and supporting documentation.

Participants also develop stronger skills in maintaining and reviewing an asset register. They understand the information required to support asset identification, classification, componentisation, depreciation and disposal.

The programme improves practical understanding of unit of production depreciation and other relevant depreciation considerations. Participants gain the ability to connect asset consumption patterns with appropriate accounting calculations.

Useful life estimation becomes more structured through consideration of asset characteristics, operational conditions and replacement expectations. This supports more informed communication between finance and technical teams.

Participants gain greater confidence in managing work in progress and determining when project expenditure should transition into completed fixed assets. They also strengthen their understanding of borrowing cost capitalisation and related documentation.

The course develops stronger skills in handling asset transfers and disposals, supporting more accurate records throughout the asset lifecycle.

Professionally, these capabilities strengthen participants effectiveness in roles involving petroleum accounting, project finance, financial control, capital expenditure, asset accounting and management reporting. The knowledge also improves cross-functional communication with engineering, procurement, projects, operations and asset management teams.

Who should attend

Petroleum Accountants

Designed for accountants responsible for recording, reviewing and reporting oil and gas fixed assets and capital expenditure.

Fixed Asset Accountants

Supports professionals responsible for asset registers, depreciation, componentisation, transfers and disposals.

Project Accountants

Provides practical tools for managing project expenditure, work in progress and capitalisation throughout major development projects.

Finance Managers

Strengthens oversight of capital project accounting, financial controls and asset reporting across operating portfolios.

Financial Controllers

Supports professionals responsible for accounting governance, reporting accuracy and capital expenditure controls.

Capital Project Managers

Provides greater understanding of the financial information and accounting requirements associated with project development and completion.

Asset Managers

Helps asset management professionals understand the financial implications of asset classification, componentisation, useful lives and asset movements.

Engineering and Project Controls Professionals

Improves understanding of how engineering and project information supports capitalisation, asset records and financial reporting.

Finance Business Partners

Supports professionals who advise operational and project teams on capital expenditure and financial performance.

Senior Finance Professionals

Provides a structured update on fixed asset accounting practices relevant to complex oil and gas operations and capital programmes.

Course outline

This module establishes the foundation for managing fixed assets from project initiation through operational use. It examines the relationship between capital expenditure, project development, work in progress and completed assets across wells, facilities and supporting infrastructure.

  1. IAS 16 Property Plant and Equipment

    • Establishes the accounting principles for recognising and measuring property, plant and equipment.

    • Provides the framework for determining asset cost and subsequent depreciation.

    • Supports consistent treatment of significant physical assets used in operations.

    • Provides relevant guidance for the transition from project expenditure to recognised property, plant and equipment.

    Learning Outcomes

    • Identify the principal categories of fixed assets used in oil and gas operations.

    • Distinguish capital expenditure from operating expenditure in practical scenarios.

    • Explain the relationship between work in progress and completed assets.

    • Establish the key considerations for determining an asset capitalisation date.

    • Understand the information required to maintain an effective asset register.

This module examines the accounting treatment of wells and complex facilities where a single development contains multiple asset components. The focus is on establishing appropriate asset structures and applying componentisation to assets with different useful lives and consumption patterns.

  1. IFRS 6 Exploration Evaluation

    • Provides accounting requirements relevant to exploration and evaluation expenditure.

    • Addresses financial reporting considerations for exploration and evaluation activities.

    • Supports appropriate distinction between exploration and later development activities.

    • Provides an important framework for organisations reporting exploration and evaluation expenditure under IFRS.

    Learning Outcomes

    • Understand the accounting lifecycle of wells and development assets.

    • Identify situations where componentisation provides more accurate asset accounting.

    • Assess useful life considerations for major asset components.

    • Understand how engineering information supports fixed asset accounting.

    • Improve coordination between project, engineering and finance teams.

This module focuses on the subsequent accounting of oil and gas fixed assets, including depreciation methodology, useful life estimation and capitalisation of borrowing costs. Participants examine how asset characteristics and project conditions influence accounting decisions.

  1. IAS 23 Borrowing Costs

    • Establishes principles for the treatment of borrowing costs associated with qualifying assets.

    • Addresses borrowing costs incurred during periods of asset development or construction.

    • Supports appropriate capitalisation of qualifying borrowing costs into asset cost.

    • Provides a recognised framework for distinguishing capitalised borrowing costs from finance costs recognised separately.

    Learning Outcomes

    • Understand the application of depreciation to oil and gas fixed assets.

    • Apply unit of production depreciation concepts to relevant asset categories.

    • Evaluate useful life estimation considerations.

    • Understand the accounting implications of component depreciation.

    • Identify the principles governing capitalisation of borrowing costs.

    • Improve documentation supporting depreciation and borrowing cost decisions.

This module addresses the movement and retirement of assets throughout the operational lifecycle. Participants examine asset transfers between projects and locations, asset disposals, retirements and the controls required to maintain accurate asset records.

  1. IAS 16 Derecognition Principles

    • Provides principles for removing property, plant and equipment from the financial records.

    • Addresses derecognition when assets are disposed of or no longer expected to generate future economic benefits.

    • Supports appropriate accounting for gains or losses arising from asset disposal.

    • Provides a recognised basis for maintaining accurate asset records throughout the asset lifecycle.

    Learning Outcomes

    • Apply appropriate controls to asset transfers.

    • Understand the accounting implications of asset disposals and retirements.

    • Identify documentation required for asset movements.

    • Strengthen reconciliation between physical assets and financial records.

    • Improve the accuracy of the asset register following transfers and disposals.

This module brings together the accounting and control principles covered throughout the course. It focuses on governance over capital projects, asset register integrity, reporting processes and coordination between finance, projects, engineering and operations.

  1. IAS 8 Accounting Policies

    • Provides principles for selecting and applying accounting policies.

    • Supports consistency in the application of accounting treatments.

    • Establishes a framework for addressing changes in accounting estimates and accounting policies.

    • Provides relevant guidance for maintaining consistent and transparent financial reporting practices.

    Learning Outcomes

    • Integrate fixed asset accounting controls across the complete project lifecycle.

    • Strengthen governance over capital expenditure and work in progress.

    • Improve asset register integrity through structured review processes.

    • Establish stronger controls around capitalisation, transfers and disposals.

    • Improve communication between finance, engineering, projects and operations.

    • Apply a structured approach to supporting accurate financial reporting for capital projects.

Certificate

Attendees receive a Certificate of Completion from Institute For Oil & Gas Training upon successfully finishing the course. The certificate is issued to participants who meet the course attendance requirement and complete the programme.

Course dates

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £3,600

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £3,600

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £3,600

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £3,600

Fees include tuition, course materials and refreshments. Need different dates or a different city? Ask about your preferred date.

Frequently asked questions

What does the Fixed Assets & Capital Projects course cover?

The course covers fixed asset accounting across wells and facilities, including capital expenditure, work in progress, asset capitalisation date, componentisation, depreciation, useful life estimation, borrowing costs, asset transfers and disposals.

Who is this course designed for?

It is designed for petroleum accountants, fixed asset accountants, project accountants, finance managers, financial controllers, project managers, asset managers, project controls professionals and finance business partners working in oil and gas organisations.

How is the course delivered?

Institute For Oil & Gas Training uses practical case studies, worked examples, group exercises, simulations and real-world oil and gas scenarios to connect accounting principles with capital project and asset management activities.

Does the course cover unit of production depreciation?

Yes. The programme examines unit of production depreciation and its relevance to oil and gas assets, alongside useful life estimation, componentisation and depreciation commencement considerations.

What certificate do participants receive?

Attendees receive a Certificate of Completion from Institute For Oil & Gas Training upon finishing the course and meeting the required attendance requirement.

Next: 05 Oct 2026

4 dates available

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