JV Oil & Gas Auditing Services
Independent Review. Greater Cost Transparency. Stronger Accountability.
Joint venture relationships can create complex financial and operational challenges for working-interest owners. Loumos Group independently examines joint venture transactions to determine whether costs, billings, allocations and revenues are supported and consistent with applicable agreements.
Understanding Where the Money Goes
Is every charge supported, allowable and correctly allocated?
A JV audit can show whether expenditures are properly supported, appropriately classified, correctly allocated and permitted under the governing agreement.
Our review may examine joint interest billings, operating and capital expenditures, overhead, affiliate transactions, procurement costs, contractor charges, credits and adjustments. Where applicable, we also examine production and revenue information to identify inconsistencies between operational activity and financial reporting.
Contractual Compliance Matters
Measured against your governing agreements
Joint ventures are governed by agreements that define how costs and revenues are handled. Depending on the arrangement, our review may consider Joint Operating Agreements, Production Sharing Agreements, participation agreements, operating agreements and other contractual documents.
We compare relevant transactions and practices against applicable provisions and supporting documentation.
What We Look For
Common audit exceptions
For each item, we establish what was charged, why, what documentation supports it, which contractual provision applies and what financial impact may exist.
Unsupported costs
Duplicate charges
Inappropriate allocations
Questionable overhead
Incorrect working-interest calculations
Affiliate transactions
Capital vs. operating classification
Missing credits
Procurement concerns
Our JV Audit Process
Audit phases
Planning, data acquisition and analytical review build a clear, defensible picture before detailed examination begins.
1. Engagement planning
Objectives, scope, audit period, applicable agreements, materiality, data requirements and key risk areas.
2. Data acquisition
Financial, operational, contractual and supporting records are obtained and organized.
3. Analytical review
Unusual transactions, duplicate or unsupported charges, allocation anomalies and billing inconsistencies are identified.
Agreements and Records
The source records we review
Depending on the engagement, the review may consider Joint Operating Agreements, Production Sharing Agreements, operating agreements, participation agreements and other contractual provisions.
Source records may include general ledger data, joint interest billings, invoices, contracts, purchase orders, production records, revenue statements and supporting documentation.
Who Can Benefit
Built for non-operating working-interest owners
Our services are particularly valuable to the following organizations. A JV audit is not simply an accounting exercise. It is a way to improve financial visibility, strengthen accountability and protect the economic interests associated with an energy asset.
- Non-operating working-interest owners
- Energy companies
- Investors and private equity firms
- Family offices
- International energy companies
Confidential
Protect your working interest
Request a confidential JV audit consultation and speak directly with our team.
