ACCOUNTS - Final Accounts

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS - Company Information

Caseware UK (AP4) 2020.0.247 2020.0.247 2020-12-312020-05-182020-05-182020-05-312020-05-182020-05-182020-05-312020-12-31falseVoice of global upstream industry41true2020-01-0133falseThe members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006. 01832064 2020-01-01 2020-12-31 01832064 2019-01-01 2019-12-31 01832064 2020-12-31 01832064 2019-12-31 01832064 2 2020-01-01 2020-12-31 01832064 2 2019-01-01 2019-12-31 01832064 4 2020-01-01 2020-12-31 01832064 4 2019-01-01 2019-12-31 01832064 1 2020-01-01 2020-12-31 01832064 e:CompanySecretary1 2020-01-01 2020-12-31 01832064 e:Director1 2020-01-01 2020-12-31 01832064 e:Director2 2020-01-01 2020-12-31 01832064 e:Director3 2020-01-01 2020-12-31 01832064 e:Director4 2020-01-01 2020-12-31 01832064 e:Director5 2020-01-01 2020-12-31 01832064 e:Director5 2020-12-31 01832064 e:Director7 2020-01-01 2020-12-31 01832064 e:Director7 2020-12-31 01832064 e:Director8 2020-01-01 2020-12-31 01832064 e:Director8 2020-12-31 01832064 e:Director9 2020-01-01 2020-12-31 01832064 e:Director10 2020-01-01 2020-12-31 01832064 e:Director10 2020-12-31 01832064 e:Director11 2020-01-01 2020-12-31 01832064 e:Director12 2020-01-01 2020-12-31 01832064 e:Director13 2020-01-01 2020-12-31 01832064 e:Director13 2020-12-31 01832064 e:Director14 2020-01-01 2020-12-31 01832064 e:Director15 2020-01-01 2020-12-31 01832064 e:Director15 2020-12-31 01832064 e:RegisteredOffice 2020-01-01 2020-12-31 01832064 d:Buildings d:ShortLeaseholdAssets 2020-01-01 2020-12-31 01832064 d:Buildings d:ShortLeaseholdAssets 2020-12-31 01832064 d:Buildings d:ShortLeaseholdAssets 2019-12-31 01832064 d:LandBuildings 2020-12-31 01832064 d:LandBuildings 2019-12-31 01832064 d:OfficeEquipment 2020-01-01 2020-12-31 01832064 d:OfficeEquipment 2020-12-31 01832064 d:OfficeEquipment 2019-12-31 01832064 d:OfficeEquipment d:OwnedOrFreeholdAssets 2020-01-01 2020-12-31 01832064 d:ComputerEquipment 2020-01-01 2020-12-31 01832064 d:OtherPropertyPlantEquipment 2020-01-01 2020-12-31 01832064 d:OwnedOrFreeholdAssets 2020-01-01 2020-12-31 01832064 d:CurrentFinancialInstruments 2020-12-31 01832064 d:CurrentFinancialInstruments 2019-12-31 01832064 d:Non-currentFinancialInstruments 2020-12-31 01832064 d:Non-currentFinancialInstruments 2019-12-31 01832064 f:UnitedKingdom 2020-01-01 2020-12-31 01832064 f:UnitedKingdom 2019-01-01 2019-12-31 01832064 f:RestWorldOutsideUK 2020-01-01 2020-12-31 01832064 f:RestWorldOutsideUK 2019-01-01 2019-12-31 01832064 d:UKTax 2020-01-01 2020-12-31 01832064 d:UKTax 2019-01-01 2019-12-31 01832064 d:RetainedEarningsAccumulatedLosses 2020-01-01 2020-12-31 01832064 d:RetainedEarningsAccumulatedLosses 2020-12-31 01832064 d:RetainedEarningsAccumulatedLosses 2019-01-01 2019-12-31 01832064 d:RetainedEarningsAccumulatedLosses 2019-12-31 01832064 d:RetainedEarningsAccumulatedLosses 2019-01-01 01832064 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2020-12-31 01832064 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2019-12-31 01832064 d:FinancialLiabilitiesFairValueThroughProfitOrLoss d:ListedExchangeTraded 2020-12-31 01832064 d:FinancialLiabilitiesFairValueThroughProfitOrLoss d:ListedExchangeTraded 2019-12-31 01832064 e:FRS102 2020-01-01 2020-12-31 01832064 e:Audited 2020-01-01 2020-12-31 01832064 e:FullAccounts 2020-01-01 2020-12-31 01832064 e:CompanyLimitedByGuarantee 2020-01-01 2020-12-31 01832064 d:WithinOneYear 2020-12-31 01832064 d:WithinOneYear 2019-12-31 01832064 d:BetweenOneFiveYears 2020-12-31 01832064 d:BetweenOneFiveYears 2019-12-31 01832064 d:MoreThanFiveYears 2020-12-31 01832064 d:MoreThanFiveYears 2019-12-31 01832064 2 2020-01-01 2020-12-31 01832064 6 2020-01-01 2020-12-31 iso4217:GBP xbrli:pure

Registered number: 01832064

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

(A company limited by guarantee)

DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

(A company limited by guarantee)

COMPANY INFORMATION

Directors	Billy Craig May
	Fawaz Bitar
	Giorgio Guidi
	Graham Henley
	James Andrews (resigned 18 May 2020)
	John McDonald (appointed 18 May 2020)
	John Whelan (appointed 1 June 2020)
	Mauricio Diniz
	Michael Borrell (resigned 1 July 2020)
	Mohamed Firouz Asnan
	Morten Loktu
	Troels Albrechtsen (appointed 1 July 2020)
	Trond-Erik Johansen
	Wayne Warwick (resigned 31 May 2020)


Company secretary	Iman Hill


Registered number	01832064


Registered office	City Tower
	40 Basinghall Street
	London
	EC2V 5DE


Independent auditors	Richlands Business Advisers Limited
	42-46 Station Road
	Edgware
	Middlesex
	HA8 7AB

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

(A company limited by guarantee)

CONTENTS

	Page
Directors' report	1 - 3
Independent auditor's report	4 - 7
Statement of income and retained earnings	8
Balance sheet	9
Notes to the financial statements	10 - 25

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

(A company limited by guarantee)

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

The directors present their report and the financial statements for the year ended 31 December 2020.

Principal activity

The International Association of Oil & Gas Producers (IOGP) is the voice of the global upstream oil and gas industry.
Together, we identify and share knowledge and good practices to improve the industry in areas such as health, safety and the environment.

Directors' responsibilities statement

The directors are responsible for preparing the Directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the surplus or deficit of the Company for that period.

In preparing these financial statements, the directors are required to:

∙select suitable accounting policies for the Company's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 1

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

(A company limited by guarantee)

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Directors

The directors who served during the year were:

Billy Craig May

Fawaz Bitar

Giorgio Guidi

Graham Henley

James Andrews (resigned 18 May 2020)

John McDonald (appointed 18 May 2020)

John Whelan (appointed 1 June 2020)

Mauricio Diniz

Michael Borrell (resigned 1 July 2020)

Mohamed Firouz Asnan

Morten Loktu

Troels Albrechtsen (appointed 1 July 2020)

Trond-Erik Johansen

Wayne Warwick (resigned 31 May 2020)

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

The auditors, Richlands Business Advisers Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Management Committee

The following elected members served on the Management Committee for the period to December 2020:
bp plc
Chevron Corporation
ConocoPhillips
Eni SpA
Equinor
ExxonMobil
OPITO (appointed 18 May 2020)
Petrobras
PETRONAS
Schlumberger (resigned 18 May 2020)
Shell
Total

Page 2

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

(A company limited by guarantee)

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

Iman Hill

Secretary

Date: 28 July 2021

Page 3

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

Opinion

We have audited the financial statements of International Association of Oil & Gas Producers (the 'Company') for the year ended 31 December 2020, which comprise the Statement of income and retained earnings, the Balance sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

∙give a true and fair view of the state of the Company's affairs as at 31 December 2020 and of its profit for the year then ended;

∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

∙have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the Directors' Report and Financial Statements, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material

Page 4

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS (CONTINUED)

inconsistencies or apparent material misstatements, we are required to determine whether there is a material
misstatement in the financial statements or a material misstatement of the other information. If, based on the
work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

∙the information given in the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Directors' report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

∙the financial statements are not in agreement with the accounting records and returns; or

∙certain disclosures of directors' remuneration specified by law are not made; or

∙we have not received all the information and explanations we require for our audit; or

∙the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' report and from the requirement to prepare a Strategic report.

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 1, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Page 5

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS (CONTINUED)

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to the UK tax legislation and breaches of health and safety, and we considered the extent to which non-compliance might have a material effect on the financial statements.
We also considered those laws and regulations that have a direct impact on the preparation of the financial
statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for
fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries, and management bias in accounting
estimates. Audit procedures performed by us included:

∙discussion with management including consideration of known or suspected instances of non-compliance
with laws and regulation and fraud;

∙assessment of matters reported on the company's health and safety audit and the results of management's action on the findings

∙challenging assumptions made by management in their significant accounting estimates;

∙identifying and testing journal entries.

There are inherent limitations in the audit procedures described above and the further removed non-compliance
with laws and regulations is from the events and transactions reflected in the financial statements, the less likely
we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than
the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example,
forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Page 6

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS (CONTINUED)

Jay Shah (Senior statutory auditor)

for and on behalf of

Richlands Business Advisers Limited

Statutory Auditors

42-46 Station Road

Edgware

Middlesex

HA8 7AB

28 July 2021

Page 7

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

(A company limited by guarantee)

STATEMENT OF INCOME AND RETAINED EARNINGS

FOR THE YEAR ENDED 31 DECEMBER 2020

	2020	2019
Note	£	£


Turnover	4	7,109,848	4,445,830
Gross profit		7,109,848	4,445,830
Administrative expenses		(5,831,882)	(5,541,774)
Other operating income	5	397,912	385,946
Operating profit/(loss)		1,675,878	(709,998)
Interest receivable and similar income	8	14,943	33,752
Profit/(loss) before tax		1,690,821	(676,246)
Tax on profit/(loss)	9	(2,839)	(6,413)
Profit/(loss) after tax		1,687,982	(682,659)



Retained earnings at the beginning of the year	4,662,727	5,345,386
	4,662,727	5,345,386
Profit/(loss) for the year	1,687,982	(682,659)
Retained earnings at the end of the year	6,350,709	4,662,727

The notes on pages 10 to 25 form part of these financial statements.

Page 8

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

(A company limited by guarantee)

REGISTERED NUMBER: 01832064

BALANCE SHEET

AS AT 31 DECEMBER 2020

		2020		2019
Note		£		£


Fixed assets
Tangible assets	10		256,959		275,963
Investments	11		1		-
			256,960		275,963
Non-current assets
Debtors due after more than 1 year			510,981		509,691
			510,981		509,691
Current assets
Debtors due within 1 year		1,176,854		877,581
Cash at bank and in hand	13	6,092,034		4,281,816
		7,268,888		5,159,397
Creditors: amounts falling due within one year	14	(1,473,961)		(1,070,165)
Net current assets			5,794,927		4,089,232
Total assets less current liabilities			6,051,887		4,365,195

Creditors: amounts falling due after more than one year	15		(212,159)		(212,159)
Net assets			6,350,709		4,662,727

Capital and reserves
Profit and loss account	6,350,709	4,662,727
	6,350,709	4,662,727

The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 July 2021.

Fawaz Bitar	Graham Henley
Director	Director

Page 9

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1.	General information

The International Association of Oil & Gas Producers is a company limited by guarantee incorporated in the United Kingdom. The address of its registered office and principal place of business is City Tower, 40 Basinghall Street, London, EC2V 5DE.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The company has taken advantage of the disclosure exemption in paragraph 3.1B of FRS102 not to prepare a cash flow statement on the basis that the company qualifies as a small entity.

The following principal accounting policies have been applied:

2.2

Going concern

On 30th January 2020, the World Health Organization declared the outbreak of coronavirus
(“COVID-19”) to be a public health emergency of international concern. This coronavirus outbreak
has severely restricted the level of economic activity around the world. In response to this
coronavirus outbreak, the governments of many countries, states, cities and other geographic
regions have taken preventative or protective actions, such as imposing restrictions on travel and
business operations.
Despite the far reaching impact of the COVID-19 pandemic on the economy, management are confident that the Company maintains an appropriate level of liquidity, sufficient to meet the demands of the business. There are no material uncertainties that lead to significant doubt upon the Company's ability to continue as a going concern.

Page 10

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

2.Accounting policies (continued)

2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.4

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

S/Term Leasehold Property	-	Over the life of the lease
Furniture and equipment	-	25% on a straight line basis
Office equipment	-	10% on a straight line basis
S/Term Leasehold Improvements	-	Over the life of the lease

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 11

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

2.Accounting policies (continued)

2.5

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of income and retained earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each Balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

2.6

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.7

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Page 12

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

2.Accounting policies (continued)

2.8

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of income and retained earnings.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

2.9

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 13

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

2.Accounting policies (continued)

2.10

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of income and retained earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

2.11

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.12

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 14

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

2.Accounting policies (continued)

2.13

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

2.14

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.15

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of comprehensive income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.

2.16

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

2.17

Other operating income

Other operating income represents recovery of costs incurred by the Company in respect of Joint Industry Projects (JIPS), where the company manages on behalf of a consortium made up of a limited number of its members.

Page 15

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

In applying the company's accounting policies, the directors are required to make judgments, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgments, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgments, estimates and assumptions, the actual results and outcomes may differ.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision effects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.
Critical judgments in applying the Company's accounting policies
The critical judgments that the directors have made in the process of applying the company's accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below
i) Assessing indicators of impairment
In assessing whether there have been any indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no indicators of impairment identified during the current financial year.
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:
(i) Recoverability of receivables
If necessary, the company establishes a provision for receivables that are estimated not to be recoverable. When assessing the recoverability the directors consider factors such as aging of receivables, past experience of recoverability, and the credit profile of an individual or groups of customers.
(ii) Determining residual values and useful economic lives of property, plant and equipment
The Company depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.
Judgement is applied by management when determining the residual values for plant, machinery and equipment. When determining the residual value management aim to assess the amount that the Company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.

Page 16

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

Turnover

84.2% of the Company's turnover (2019 - 81.0%) is attributable to geographic markets outside the United Kingdom.
Turnover represents subscription income for the year receivable from members.

					2020	2019
					£	£

United Kingdom	1,122,353	843,436
Rest of the world	5,987,496	3,602,394
	7,109,849	4,445,830

5.	Other operating income
		2020	2019
		£	£

E & P SOUND & MARINE LIFE (JIP 22 PHASE III) Management Charge	79,485	45,795
E & P SOUND & MARINE LIFE (JIP 22 PHASE IV) Management Charge	29,301	-
HARMONISATION OF SPECIFICATIONS (JIP 33 PHASE III) Management Charge	255,600	319,800
Other JIP management charges	33,526	20,351
	397,912	385,946

6.	Auditors' remuneration
		2020	2019
		£	£

Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements

4,800

4,686

Page 17

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

Employees

The average monthly number of employees, including the directors, during the year was as follows:

	2020	2019
	No.	No.

Average number of employees	41	33

Staff costs were as follows:

					2020	2019
					£	£


Wages and salaries	1,873,788	1,469,164
Social security costs	285,788	227,662
Pension costs	74,391	50,616
	2,233,967	1,747,442

8.	Interest receivable
		2020	2019
		£	£

	Bank & other interest receivable	14,943	33,752
		14,943	33,752

9.	Taxation

		2020	2019
		£	£

Corporation tax
Current tax on profits for the year	2,839	6,413

Total current tax	2,839	6,413

Page 18

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

9.Taxation (continued)

Factors affecting tax charge for the year
The tax assessed for the year is lower than (2019 - higher than) the standard rate of corporation tax in the UK of 19.0% (2019 - 19.0%). The differences are explained below:
	2020	2019
	£	£

Profit/(loss) on ordinary activities before tax

1,690,821

(676,246)

Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 19.0% (2019 - 19.0%)	321,256	(128,487)
Effects of:
Non-taxable income less expenses not deductible for tax purposes, other than goodwill and impairment	(318,417)	134,900
Total tax charge for the year	2,839	6,413

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 19

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

10.	Tangible fixed assets

	S/Term Leasehold Property	Furniture and equipment	Total
	£	£	£
Cost or valuation
At 1 January 2020	374,855	597,705	972,560
Additions	36,240	16,279	52,519
Disposals	-	(500,227)	(500,227)
At 31 December 2020	411,095	113,757	524,852
Depreciation
At 1 January 2020	151,257	545,340	696,597
Charge for the year on owned assets	45,138	26,385	71,523
Disposals	-	(500,227)	(500,227)
At 31 December 2020	196,395	71,498	267,893
Net book value
At 31 December 2020	214,700	42,259	256,959
At 31 December 2019	223,598	52,365	275,963

The net book value of land and buildings may be further analysed as follows:
	2020	2019
	£	£

Short leasehold	214,700	223,598
	214,700	223,598

Page 20

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

11.	Fixed asset investments

		Investments in subsidiary companies
		£
	Cost or valuation
	Additions	1
	At 31 December 2020	1

12.

Debtors

					2020	2019
					£	£

Due after more than one year
Other debtors	510,981	509,691
	510,981	509,691
Due within one year
Trade debtors	549,614	170,170
Amounts owed by group undertakings	36,934	99,979
Other debtors	164,517	135,410
Prepayments and accrued income	425,789	472,022
	1,687,835	1,387,272

13.	Cash and cash equivalents
		2020	2019
		£	£

Cash at bank and in hand	6,092,034	4,281,816
	6,092,034	4,281,816

Page 21

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

14.	Creditors: Amounts falling due within one year
		2020	2019
		£	£

Trade creditors	199,690	281,486
Amounts owed to group undertakings	14,236	15,049
Corporation tax	2,839	6,413
Other taxation and social security	136,660	144,150
Other creditors	1	106
Accruals and deferred income	1,120,535	622,961
	1,473,961	1,070,165

15.	Creditors: Amounts falling due after more than one year
		2020	2019
		£	£

Other creditors	212,159	212,159
	212,159	212,159

Page 22

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

16.	Financial instruments
		2020	2019
		£	£

Financial assets
Financial assets measured at fair value through profit or loss	6,092,034	4,281,816
Financial assets that are debt instruments measured at amortised cost	1,445,785	1,160,170
	7,537,819	5,441,986

	Financial liabilities
	Financial liabilities measured at amortised cost	1,546,621	1,131,762

	Financial assets measured at fair value through profit or loss comprise bank balances. Financial assets that are debt instruments measured at amortised cost comprise trade and other debtors, accrued income and group balances
	Financial liabilities measured at amortised cost comprise trade creditors, accruals and deferred income, other creditors and group balances


17.	Company status

The company is a private company limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £1,000 towards the assets of the company in the event of liquidation.

18.	Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £74,391 (2019 - £50,616).

Page 23

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

19.	Commitments under operating leases
	At 31 December 2020 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
		2020	2019
		£	£

Not later than 1 year	516,809	480,579
Later than 1 year and not later than 5 years	1,819,792	1,857,315
Later than 5 years	99,843	469,851
	2,436,444	2,807,745

20.	Related party transactions
	Members of the Management Committee paid total subscriptions in the year as follows:

		2020	2019
		£	£

bp plc	331,022	171,533
Chevron Corporation	331,022	171,533
ConocoPhillips	225,766	136,013
Eni SpA	248,266	150,813
Equinor	301,022	171,533
ExxonMobil	331,022	171,533
OPITO	82,755	-
Petrobras	90,000	53,280
PETRONAS	150,000	65,120
Schlumberger	82,755	65,047
Shell	331,022	171,533
Total	331,022	171,533

Key management personnel compensation
The company’s key management personnel are considered to be executive directors. Their compensation during the year was as follows:

					2020	2019
					£	£


Wages and salaries	398,661	349,142
Social security costs	54,091	46,998
	452,752	396,140

Page 24

INTERNATIONAL ASSOCIATION OF OIL & GAS PRODUCERS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

21.	Post balance sheet events

On 1 January 2021, the activities of the Brussels branch were transferred to a new limited company incorporated in Belgium, 'IOGP Europe ASBL'. This company is a subsidiary of IOGP London Ltd.

Page 25