Verification of charges to PSC and Joint Venture activities

Production Sharing Agreements (PSA) and Joint Operating agreements (JOA) are two of the main ways of organizing the O&G activities. Both the JVs and the PSAs are highly affected and exposed to the costs and allocation being charged to the activity by the operator. Allocations and charges to the activity are regulated by the agreements in the PSA and the JOA. Audits undertaken by the non-operators and the regulators are essential to ensure and verify that the cost charges are correctly charged to the activity.

The course is designed to give an understanding and knowledge about the cost being charged and allocated the operated activity and paid by the partnerships in the JVs or deducted in the PSAs. Ultimately the participants shall be able to verify, challenge and reject cost being charged to the O&G activity of concern. 

The course will give the participants challenges and insights to real-life cases where the understanding of the course material is being tested as well understanding of the day to day activities in the operations.


Target audience

Personnel working with the activity, including budgeting, reporting, tax or income collection: Asset managers, finance staff, accountants, CFOs, Economic Directors, tax specialists and others involved in the activity.


Topics covered

The course gives the attendants the following knowledge and understanding:

The Audit Process

  • Audit planning
  • Identification of risks
  • Audit Methodology
  • Audit tests and controls

Activity and Charges in O&G activities

  • Accounting and ERP in oil companies
  • Overview of allocations and direct charges
  • Mechanisms of allocations
  • Differences in  JV and PSA charges
  • Major cost issues in O&G

The Audit Activity and Dispute Resolution

  • Audit Cycle
  • Making use of ERP systems
  • Analyzing records and transaction
  • Interactions between auditor and auditee
  • Management of audit exceptions
  • Dispute resolution


Mr. Henrik Due Tønnessen is responsible in TMF Energy as Audit Manager specializing in O&G accounting with special focus on charges and allocations to the licenses on behalf of the JV partners and the regulators.  He has more than ten years’ experience from working with international oil companies assisting with allocation set-up, cost treatment and understanding of the relevant agreements.

Henrik has a Master’s degree in Tax Consultancy from the University of Navarra, a Master in Audit and Accounting from the NHH Norwegian School of Economics and a Master in Business Administration from the Audencia Ecole de Management (France).