Oil & Natural Gas Industries

In the Oil and Natural Gas sector, FRAS International LLP serves as vital financial stewards and trusted partners, ensuring that the intricate processes—from exploration to refining—remain compliant and financially sound.

Our Roles & Responsibilities

• Financial Reporting and Audit: We prepare and audit financial statements, ensuring accurate reporting and adherence to industry specific standards.
• Specialized Accounting (Upstream): We manage the accounting for exploration, development, and production costs, covering aspects like depletion, depreciation, and amortization of assets.
• Tax Compliance and Planning: Our approach focuses on managing tax liabilities, including corporate tax and GST/indirect taxes, while navigating regulations related to oil fields to maximize benefits.
• Cost Management and Control: We analyze operational expenses, capital expenditures, and production costs, including "side-tracking" expenses, to maintain financial control.
• Regulatory Adherence: We ensure compliance with government regulations and industry standards, such as the transition to Ind AS/IFRS.
• Risk Management: We develop internal controls aimed at mitigating risks related to oil price fluctuations and significant infrastructure investments.

Specific Tasks in Oil & Gas Companies:

• Production Entity Accounting (SPE): We implement accounting practices in line with the Guidance Note on Accounting for Oil & Gas Producing Activities (2016).
• Contractual Review: We review joint operating agreements and production sharing contracts to assess their accounting implications.
• Asset Valuation: We evaluate oil and gas reserves, including assessing impairments for dry wells and abandoned projects.