Introduction

Upstream oil and gas operations are governed by complex contractual arrangements that establish the rights, obligations, financial commitments, and commercial relationships between governments, national oil companies, operators, and joint venture partners. Given the significant investments involved and the complexity of cost recovery, revenue-sharing, and operational performance requirements, effective contract auditing plays a vital role in protecting stakeholder interests and ensuring contractual compliance.

Contract audits provide organisations with an independent mechanism to verify expenditures, assess compliance with contractual obligations, identify financial exposures, and strengthen governance across the petroleum value chain. Effective audit practices contribute to improved transparency, reduced commercial disputes, enhanced financial accountability, and stronger stakeholder confidence.

The Upstream Contracts Audit training course provides participants with a practical framework for auditing upstream petroleum agreements, assessing contract performance, validating cost recovery claims, and evaluating governance and control environments. Participants will develop the skills required to conduct effective contract audits and strengthen assurance activities within complex upstream operating environments.

Key focus areas include:

Key Learning Outcomes

At the end of this Upstream Contracts Audit training course, participants will be able to:

Training Methodology

This training course adopts a practical and audit-focused learning approach that combines contract analysis, audit methodologies, financial review techniques, and upstream industry case studies. Participants examine petroleum agreements, audit procedures, expenditure verification methods, governance frameworks, and reporting practices relevant to upstream operations. The methodology emphasises practical application and real-world auditing challenges to strengthen assurance capability and audit effectiveness.

Upstream Contracts Audit

Who Should Attend?

This Upstream Contracts Audit training course is designed for:

  • Internal and External Auditors
  • Contract and Commercial Managers
  • Petroleum Finance and Accounting Professionals
  • Joint Venture and Cost Recovery Specialists
  • Compliance and Governance Professionals
  • Regulatory and National Oil Company Personnel

Course Outline

Day 1

Foundations of Upstream Petroleum Contracts

  • Overview of upstream oil and gas commercial arrangements
  • Production Sharing Contracts (PSCs) and concession agreements
  • Joint Operating Agreements (JOAs) and service contracts
  • Key contractual terms, obligations, and rights
  • Roles and responsibilities of operators and stakeholders
  • Contract governance and compliance requirements
Day 2

Contract Audit Planning and Risk Assessment

  • Principles of contract auditing in upstream operations
  • Audit rights and access provisions within petroleum agreements
  • Contract risk identification and assessment methodologies
  • Developing risk-based audit plans and objectives
  • Reviewing internal controls and governance frameworks
  • Audit evidence collection and documentation requirements
Day 3

Cost Recovery and Expenditure Verification

  • Cost recovery mechanisms and contractual provisions
  • Auditing exploration, development, and production expenditures
  • Verification of direct, indirect, and overhead costs
  • Procurement, subcontracting, and third-party cost reviews
  • Identifying non-compliant and non-recoverable costs
  • Financial controls and expenditure validation techniques 
Day 4

Compliance Auditing and Contract Performance Evaluation

  • Assessing compliance with contractual obligations
  • Auditing production reporting and operational performance data
  • Revenue-sharing and entitlement verification procedures
  • Environmental, regulatory, and reporting compliance reviews
  • Managing audit findings and stakeholder engagement
  • Preventing disputes through proactive compliance monitoring
Day 5

Audit Reporting, Resolution & Continuous Improvement

  • Developing clear and effective audit reports
  • Presenting audit findings and recommendations
  • Negotiating audit issues and dispute resolution approaches
  • Tracking corrective actions and remediation measures
  • Strengthening contract assurance and governance frameworks
  • Action planning for upstream contract audit excellence and continuous improvement

International Standards & Professional Alignment

Our training courses are aligned with internationally recognised professional standards and frameworks across leadership, strategy, finance, governance, risk, compliance, and audit. By integrating globally trusted models, we ensure learners develop practical, relevant, and industry-recognised capabilities.

Our trainings draw on leading international standards and professional frameworks, including ISO, ISACA, COSO, OECD, IIA, FATF, Basel, IFRS/ISSB, GRI, NIST, CPD, ILM and the OECD AI Principles. This alignment ensures consistency with global best practices across financial management, risk oversight, digital governance, sustainability, and strategic decision-making..

Designed in alignment with globally recognised professional bodies, our courses support continuous professional development, strengthen organisational capability, and provide clear pathways toward professional certifications valued worldwide.

Ready to Take the Next Step?

Reserve your slot today and start your learning journey with us.

Got a Question?

Reach out to us anytime — we're here to help and guide you.

Find the Right Professional Training Course

Use our course finder to explore training by capability area, role focus, location, or delivery format.

Search Courses