Saudi Aramco GI 203.001 JOINT ARRANGEMENT – PRE-FORMATION COST SHARING

This document, Saudi Aramco General Instruction 203.001, outlines the essential policies and procedures for accounting for transactions that occur during the pre-formation phase of Joint Arrangement Development Projects. It comprehensively details the accounting treatment for Joint Activities Costs, Long Lead Costs, Qualified Separate Costs, and Qualified Pre-MOU costs, guiding users through the complex financial aspects leading up to the formal establishment of a Joint Arrangement legal entity.

The instruction covers critical areas such as shared controllable costs, monthly WBS charge settlements, and the transfer of costs to the Joint Arrangement entity, ensuring financial transparency and compliance with IFRS and relevant Saudi Aramco accounting standards. It provides a structured approach to cost sharing and reconciliation, essential for effective project governance and partner collaboration.

This document serves as a vital reference for understanding the financial implications and operational requirements during the crucial initial stages of joint venture development. Ideal for accounting managers, project finance officers, and joint venture administrators working within the oil and gas sector.