The JIB process for oil and gas accountants needs to be in compliance with the JOA and COPAS’ accounting procedures, yet produce clear and concise costs information for operations and management.. Oil and gas enterprises continue to place increased importance on tracking fixed assets. The success of drilling operations requires increased scrutiny on availability and delivery of pipe and equipment to drill sites.
However, it is the best way to identify all costs and expenses that must be shared by partners. In addition, we create and maintain authorizations for expenditures (AFEs) and track actuals to estimates each month. Our team has the ability to maintain and report pre-payments per AFE for each owner alongside their existing JIB accounts receivable balance. We can also apply specific charges to an AFE for a well but not all charges, and we can support multiple AFEs and phases for a given well, including creating AFE templates. As you can imagine, JIB accounting is a complex process, and in most cases, operators often have a specialized accountant(s) on their team to manage it.
Other definitions for jib (2 of
P2 AFE’s highly flexible, mobile-accessible, and fully auditable approval workflow tools allow for minimal administration of authorizations for expenditure approvals and balloting. Out-of-the-box, two-way integration with P2’s accounting solutions enables the smooth flow of data that is consistent across the organization. P2 AFE can also integrate with third-party drilling and completions applications. E&P companies improve efficiencies and achieve greater value for complex oil and gas accounting operations.
Many operators have chosen to outsource their JIB and revenue accounting given the timeliness and sheer volume of work. We provides full-service JIB accounting, AFE accounting, oil and gas bookkeeping, accounts payable and joint interest billing, and financial, operational and production accounting. JIB is the mechanism for the operator to report joint account charges for a well or facility to the working interest owners (COPA).
What is Joint Interest Billing (JIB)?
The ability to track deliveries and transfer material is crucial to maintaining drilling operations and cost containment. The current expansion provides challenges for oil and gas operators in accounting for yard and warehouse inventory, well inventory, and property plant and equipment. P2 solutions provide the ability to track material transfers between wells and partners, yard, and warehouse inventory. An additional benefit of the solution is the ability to calculate DD&A automatically within the application.
We provide multiple reporting options and will run a simulation JIB to see your results and reconcile issues prior to finalizing. Our accounts payable process includes receiving, entering, scanning and routing vendor invoices. This invoice work flow includes coding and approval as well as electronic paperless options.
Join the rest of the industry in using EnergyLink for a more efficient and economical way to process JIBs. P2 AFE helps you expedite the AFE creation and approval process and control project overspend by providing instant visibility into what you spend on each project. As we step into October, it’s a great opportunity to reflect on the energy trends of the previous month. The expert team at Enverus Intelligence® | Research (EIR) has meticulously evaluated key trends and developments to bring you valuable analyst…
Oil and gas joint venture accounting requires accurate allocation of costs to owners, creation of JIB accounting transactions, and creation of JIB invoices. Ever changing ownership related to unleased mineral interests and increased drilling activities have created complexity for the oil and gas accounting function. With P2’s joint venture accounting solutions, companies are able to make the ownership adjustments necessary to effectively manage and report changes to their joint venture partners. The acronym JIB stands for “joint interest billing,” a form of accounting unique to the oil and gas industry.
Words that may be confused with jib
JIB statements can be several pages long due to the complexity of these arrangements. If an operator must print and mail these JIB statements to all working interest partners, the print and mail costs will quickly add up. In addition, our Accredited Petroleum Accountant® (APA®) program was established in 1996 to certify accountants within oil and gas accounting the oil and gas industry. It ensures that petroleum accountants are proficient in the basic elements of knowledge that are essential to oil and gas accounting. There’s no question that the joint interest billing process for the oil and gas industry can become somewhat complicated, especially when a number of partners are involved.
- We provide multiple reporting options and will run a simulation JIB to see your results and reconcile issues prior to finalizing.
- The publication has an offshore slant, but many of the examples contained in that publication could be applied to onshore wells and/or facilities.
- Accountants for these partners have the responsibility of charging each company according to the terms that were initially agreed upon when the joint operating agreement was established.
- By providing thorough and comprehensive analysis of specified oil and gas financial and accounting information, our customers can prevent the need for restatement and avoid unnecessary penalties.
- As you can imagine, JIB accounting is a complex process, and in most cases, operators often have a specialized accountant(s) on their team to manage it.
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Joint Interest Billing (JIB) is an accounting system that is unique to the oil and gas industry. Due to the complex nature of this industry, it’s common for multiple parties to invest in a single drilling project. Each shareholder in the joint venture has distinct privileges and obligations. A JIB statement is used to allocate the expenses and revenue from a drilling project among the partners based on the terms of their agreement. Upstream oil and gas producers are experiencing a dramatic increase in drilling.
This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. The information provided by Valor in this blog is for general informational purposes only, not to provide specific recommendations or legal or tax-related advice. The blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state. Valor is a leader in the oil and gas industry, offering specialized accounting services, with a primary focus on Joint Interest Billing (JIB) and Revenue Services. But what exactly is Joint Interest Billing, and why is it crucial for the oil and gas sector?