Saudi Aramco GI 216.815 EXPLORATION COSTS

This Saudi Aramco General Instruction (GI) 216.815 outlines the comprehensive framework for the accumulation and accounting of exploration costs within the organization. It details the policy and procedures for managing expenses incurred during the Exploration & Evaluation (E&E) phase, including geological and geophysical (G&G) costs, exploratory drilling expenses, and associated support costs.

The document clarifies the application of the successful efforts accounting method, specifying criteria for capitalization versus expensing of exploration expenditures. It also addresses specific considerations for Abu Sa'fah exploration costs and delineates the roles and responsibilities of various departments in managing these financial processes within the SAP system.

Readers will gain a thorough understanding of Saudi Aramco's accounting practices for exploration, capitalization rules, WBS account structures, and the financial implications tied to exploration activities. Ideal for accounting managers, financial analysts, and exploration finance specialists working in the oil and gas industry.