Oil & Gas Accounting & Advisory Saudi Arabia

Oil & Gas Sector

Oil & Gas Financial Compliance in Saudi Arabia

Our Oil & Gas sector clients include upstream companies, oilfield service contractors, petrochemical manufacturers, and energy technology companies. These businesses require financial advisors who understand not just general accounting standards, but the specific ZATCA treatment, sector regulatory requirements, and Vision 2030 compliance obligations that apply to their industry.

Saudi Arabia's oil & gas sector is the backbone of the Kingdom's economy — and one of the most complex accounting environments in the world. The sector's unique challenges include:

• IKTVA compliance: Saudi Aramco's In-Kingdom Total Value Add programme requires suppliers to measure, report, and improve their local content percentage. Errors in IKTVA calculations can affect contract eligibility worth hundreds of millions of SAR.
• Upstream CIT: Oil and hydrocarbon extraction companies pay a higher CIT rate (50–85%) on upstream income, separate from the standard 20% CIT on other income. The allocation between upstream and downstream activities requires specialist tax structuring.
• Transfer pricing for international E&P: International oil companies with Saudi operations face mandatory ZATCA transfer pricing documentation — Local File, Master File, and Country-by-Country reporting — covering royalties, management fees, and intercompany product pricing.
• HSE cost accounting: Oil & gas operators with mandatory health, safety, and environmental expenditure must account for capex vs opex classifications correctly under IFRS and for Zakat base purposes.
• Joint venture accounting: JV arrangements common in Saudi oil field development require joint interest billing, working interest accounting, and complex IFRS 11 joint arrangement treatment.