EXPERTISE

Our audits are based on a strong understanding of upstream operations across all asset phases. Costs are assessed in relation to the operational environment and activity level of the venture, not in isolation.

This capability is built on many years of experience in the E&P business combined with long-standing dedicated joint venture audit practice. We understand both how operations are executed in reality and how they are reflected contractually in JV accounting.

By linking financial data with the actual lifecycle stage and activity profile of an asset, we quickly obtain a clear view of chargeability, attribution and plausibility. This enables us to identify misallocations, timing inconsistencies and costs that are not supported by the operational reality of the venture.

Our audits are built on deep expertise in petroleum contracts and their practical application. We have reviewed hundreds of JOAs, PSCs, EPSAs and Accounting Procedures across multiple jurisdictions.

This experience enables us to interpret contractual provisions precisely and assess cost recovery, chargeability and allocation mechanisms in their intended context. We are equally familiar with vendor contracts and service agreements as they relate to the governing JV framework.

Through long-standing upstream audit practice and knowledge of industry standards and guidelines, we distinguish between accepted practice and contractual deviation. Our focus is not only accounting accuracy, but full alignment with the applicable petroleum agreement structure.

Transaction-level data analysis is a core strength, supported by extensive experience in SAP and other Enterprise Resource Planning (ERP) environments.

Strong capability exists in structuring and preparing large accounting data volumes for multi-dimensional analysis such as by cost elements, cost objects, document types, accounting periods and offsetting accounts. Accruals and reversals are clearly identified, internal and external costs distinguished, and vendor, working capital and manual postings systematically grouped to create transparency within datasets.

Precise data requirements are defined already at the audit announcement stage, including relevant SAP extracts and master data descriptions. High-level analytical expertise in Excel and Microsoft Power tools enables reliable reconciliation with billings, cash calls and budgets, as well as independent verification of complex allocation mechanisms.

This combination of system knowledge and analytical depth ensures structured, risk-oriented assessment across the full accounting data set and supports defensible, evidence-based audit conclusions.

Extensive experience exists in conducting audits under PSCs & EPSAs across multiple jurisdictions. Strong understanding of cost recovery mechanisms, cost oil calculations, entitlement structures and profit-sharing formulas enables precise assessment of recoverability and contractual compliance. Particular focus is placed on cost eligibility, timing of recovery, ring-fencing provisions and compliance with approved work programs and budgets.

Expertise includes detailed review of cost recovery ceilings, unrecovered cost carry-forwards, uplift provisions and the interaction between accounting treatment and contractual recovery logic. Regulatory reporting requirements and host government audit frameworks are also well understood.

In certain PSA structures involving operating companies between NOC and IOCs, audit rights extend beyond financial review to the organisational set-up, internal governance framework and internal control environment, including approval processes for financially relevant activities. Experience in these structures enables structured assessment of both contractual and governance compliance.

Substantial experience in reviewing intercompany and group-wide cost allocation structures within global organisations and corporate headquarters environments enables a structured and well-founded assessment of charging mechanisms. Allocation practices of internationally affiliated Operator entities are well understood, allowing evaluation of whether cost allocations are moderate, market-consistent or structurally aggressive, and whether they comply with local accounting procedures under JOAs as well as cost recovery frameworks under PSCs and EPSAs.

In-depth knowledge of General & Administrative overhead regulations, i.e. Parent Company Overhead (PCO) provisions under local accounting procedures, provides clarity on whether additional intercompany charges from affiliated entities are contractually permissible. Expertise includes assessment of externally certified affiliate rates and analysis of whether such rates contain cost components that should already be covered by PCO charges, potentially resulting in duplication.

This experience allows confident assessment of complex group charging structures within the specific regulatory and contractual environment of each venture.

Extensive experience exists in reviewing local indirect cost allocations within operating entities, including shared services, support functions and infrastructure costs allocated across assets or ventures.

Numerous organisational structures have been analysed to understand how personnel costs and secondary costs - such as IT and general administrative support - are internally distributed. In many cases, allocations are driven by time-writing. Strong familiarity with different internal operator time-writing guidelines and systems enables a structured assessment of these mechanisms.

Expertise includes evaluation of whether vendor costs and personnel are correctly included in distributable cost centres or chargeable to specific ventures, or appropriately assigned to corporate cost centres where the benefit relates solely to the Operator. Particular attention is given to the plausibility and consistency of time-writing records, including whether activities are properly allocated between joint venture operations and 100% operator activities.

This experience enables a well-founded assessment of whether local indirect cost allocations are transparent, contractually compliant and supported by appropriate allocation logic.

Leveraging our available AIS- and GPS-based vessel tracking software, we independently reconstruct and analyse vessel movements in detail. Routes are visualised on nautical maps covering ports, wells, platforms, and rigs, enabling us to technically re-create drilling, workover, and P&A campaigns — including assessment of weather periods and operational sequencing.

Tracked movements are systematically reconciled with logistics reports, marine statements, and billing data to assess the plausibility and contractual validity of transportation charges, including day rates, fuel consumption, consumables, and bulk deliveries.

The same technology-supported methodology is applied to rig-related costs. Operating, standby, waitingon-weather, mobilisation, and demobilisation periods are independently verified and inter-venture allocations validated against operational timelines and contractual provisions, delivering a technically robust and defensible assessment of marine and rig cost structures.

Where petroleum contracts provide for Joint Venture stock - meaning material is pre-financed by the JV rather than held as Operator stock - we bring extensive experience in reviewing, reconciling, and validating these structures within complex multi-asset environments.

We analyse detailed inventory reports in conjunction with underlying material movements, including reconciliation of stock-in transactions to vendor invoices and goods receipts, as well as verification of stock-out movements to specific assets, platforms, or sites based on transfer notes, build-in records, and consumption documentation.

Our review also covers valuation methodologies, stock ageing profiles, surplus and obsolete material handling, and the consistency between physical movement records and accounting treatment in the general ledger and joint account. Particular attention is given to ensuring that only properly documented, traceable, and contractually chargeable material is transferred from JV stock to the asset, enabling a transparent and defensible assessment of inventory governance and contractual compliance.