Analysis of service and production contracts according to the sustainability accounting standard (oil and gas - exploration and production) EM.EP.210 and EP210 indicators and reflection on product costs

Abstract

             The research aims to clarify the importance of adopting the sustainability accounting standard as a tool for analyzing service and production contracts and its reflection on production costs by analyzing the data of the Central Oil Company according to the standard under study. The research problem revolved around the company's reliance on traditional methods in analyzing service and production costs, which led to an increase in oil production costs and thus led to a decrease in revenues due to the company's reliance on the traditional method in studying the high costs of producing a barrel of oil produced, and the high percentage of its environmental risks in the Central Oil Company and its failure to keep pace with developments in strategic cost management concepts, which negatively affects the calculation of the cost of the barrel. The research presents a hypothesis that the definition of sustainability accounting standards (SASB) in general and the standards of extractive materials (oil and gas - exploration and production) in production and service contracts and determining service and production contracts in the research sample company and analyzing service and production contracts according to sustainability accounting standards and their reflection on the cost of a barrel of oil, as the research problem lies in the high costs of the barrel, which are calculated through capital and operating costs in addition to the profitability fee in the Central Oil Company, on the assumption that the use of sustainability accounting standards The standards of extractive materials and mineral processing (oil and gas - exploration and production) in the research sample company are reflected in production costs. To achieve the research objectives and prove the hypothesis, the inductive approach will be adopted in the theoretical aspect and the deductive approach will be adopted to reach what the costs of producing a barrel of oil should be based on the analysis method. The researcher reached some conclusions, the most important of which is the use of sustainability accounting standards in measuring the company's costs in order to reduce costs.