Risk Management Through Oil and Gas Audits

In the oil and gas industry, risk isn’t optional, it’s built into every phase of exploration, development, and production. With rising operational complexity, evolving regulations, and volatile market conditions, the need for robust risk management has never been greater. At Navigator Petroleum Consulting, we specialize in strategic audits that don’t just ensure compliance, they uncover opportunities, protect assets, and drive smarter decision-making.

The Role of Audits in Managing Oil and Gas Risk

From joint venture misalignments to vendor overbilling, from contract ambiguities to underperformance in Production Sharing Contracts (PSCs), today’s operators must stay ahead of a wide range of financial, operational, and legal pitfalls.

That’s why audits, when conducted by experienced professionals, serve as more than a compliance checkbox. They become strategic tools that identify vulnerabilities, mitigate risk, and optimize performance across the value chain.

Navigator Petroleum Consulting’s Audit Services: Built for Oil and Gas Risk Mitigation

At Navigator, our audit services are purpose-built for the demands of upstream, midstream, and downstream operators. Each audit type is tailored to address a critical area of exposure:

Joint Venture Audits: Joint ventures are foundational to global energy development, but they’re also prone to conflict. Our Joint Venture Audits validate cost recoveries, review partner expenditures, and confirm contractual compliance. This builds transparency and trust across the partnership.
Vendor Audits: Vendor and contractor relationships carry significant financial and reputational risk. We audit third-party billing practices, scope adherence, and service performance, helping you catch inflated costs and supply chain issues early.
Due Diligence Audits: Whether entering a new market or acquiring assets, due diligence is essential. We assess financial records, regulatory compliance, and asset health to ensure you make informed decisions and avoid costly surprises.
Internal Audits: Internal processes are the backbone of your operations. Our Internal Audits evaluate procurement, inventory, data management, and compliance systems, revealing gaps in internal controls and ensuring operational discipline.
PSC (Production Sharing Contract) Audits: Production Sharing Contracts are inherently complex , especially in international jurisdictions. We audit cost recovery mechanisms, partner obligations, and regulatory compliance, helping you maximize recovery and reduce audit disputes.
Contract Evaluation: A flawed contract can create risk that lingers for years. We analyze key clauses across technical, commercial, and financial terms to ensure your agreements are bulletproof and enforceable.

When Do You Need an Oil and Gas Audit?

Audit timing is just as important as execution. Ideal moments to initiate an audit include the start or close-out of a joint venture or production sharing contract (PSC), the launch or completion of major capital projects, changes in regulatory environments, or strategic milestones such as mergers, divestitures, or entering new markets. Conducting proactive, periodic audits during these key phases helps reduce risk exposure and supports stronger, more informed decision-making.

What Sets Navigator Petroluem's Oil and Gas Audits Apart

We Validate Financial Integrity: Accurate reporting is the backbone of trustworthy operations, especially in shared ventures or international frameworks.
We Ensure Operational Compliance: From safety protocols to tax regulations, we verify that your operations meet the latest standards.
We Identify Inefficiencies and Fraud: Our audits flag unapproved charges, performance gaps, and contract violations before they become liabilities.
We Strengthen Internal Controls: We test the systems that keep your business running and help fortify them against operational risk and human error.

Why Choose Navigator Petroleum for Your Oil and Gas Risk Management Audit

Navigator Petroleum Consulting brings deep experience across technical, financial and legal domains. We understand the pressures facing today’s operators, and offer tailored solutions backed by insight, not guesswork. Our team is equipped to handle the nuances of complex agreements, jurisdictional requirements, and high-stakes transactions, helping you move forward with clarity and confidence.

Risk will always exist, but with the right audit strategy, it doesn’t have to control your future. At Navigator Petroleum Consulting, we empower companies to navigate complexity with confidence, using audits not just as tools of review, but as cornerstones of strategic growth. Contact us today to discuss how we can support your risk management goals with expert oil and gas audits tailored to your operation.

About the Author

Aaron David

Aaron David has more than 30 years of experience in the oil and gas industry. Prior to launching a career dedicated to oil and gas auditing Aaron worked in corporate income tax and financial accounting. He was chief accountant for a U.S. subsidiary of a Canadian oil and gas company as well as treasurer of a public oil and gas company in Canada.