chapter 5: field study in petroleum...
TRANSCRIPT
142
CHAPTER 5:
FIELD STUDY IN PETROLEUM COMPANIES IN YEMEN
The reputed home of the Queen of Sheba, Yemen has been at the crossroads of Africa, the Middle East
and Asia for thousands of years thanks to its key position on the ancient spice routes. The Romans knew
this fertile and wealthy country as Arabia Felix, in contrast to the relatively barren Arabia Desert to the
north. And today it maintains its own distinct character. 1
5.1. BACKGROUND ABOUT YEMEN:
The modern Republic of Yemen came into being in 1990 when traditionalist North
Yemen and Marxist South Yemen merged after years of border wars and skirmishes.
But the peace broke down in 1994. A brief civil war ended in defeat for separatist
southerners and the survival of the unified Yemen2.
Since unification, the country has been modernizing and opening up to the outside
world, but Yemen still maintains much of its tribal character and old ways, people wear
traditional dress and the country has attracted the curiosity of a growing number of
tourists.
5.1.1. Location and Size:
The republic of Yemen lies at the southeast tip of the Arabian Peninsula; total land
area is about 555,000sq.km. Yemen is bordered by Kingdom of Saudi Arabia in the
north, the Arabian Sea and Indian Ocean in the south, the red sea in the west and Oman
in the east3. Socotra is the largest and most important Yemeni island; it and its
subsidiary islands are located in the Arabian Sea. A large number of islands are also
1BBC News. www.bbc.co.uk.
2Ibid.
3Republic of Yemen, “10 Years of Achievements” Ministry of Planning and development.1990-2000,
p.18.
143
located in the Red sea. The largest and most important of these is Kamaran Island and
Perim Island (Maiyoon)4. In addition, Yemen population in 2004 estimated 20 million
5.
The following map illustrates the Yemeni boarders.
Map No.5.1 illustrates Yemen boards
http//www.gulfstatesnews.com
5.1.2. Geology of Yemen:
Geologically , Yemen is an integral part of the Arabian - Nubian shield which is
composed of metavolcanic and plutonic rocks . The shield is considered to have been
formed by a process of microplate build-up during the Proterozoic period. The various
terrains boarder one another along linear Suture zones representing the edge of the
microplates. The youngest and the most prominent zone is known as the Nabitah
426 September.Op.Cit. p.7.
5For more detail about Yemen see: www.ameinfo.com & www.gulfoilandgas.com
144
Suture, which probably formed by the collision of two crystals plates during the
proterozoic era .6
5.1.3. Politics:
The republic of Yemen, established by the merger o f the two Yemens on 22 of May
1990, Yemen is a parliamentary democracy; its constitution defines it as an
independent, Islamic, Arabic state legislation based on the Islamic Religion (Sharia’a) 7.
5.1.4. Economy:
Yemen is still a predominantly agriculture – oriented country, most agriculture is
based on subsistence farming using traditional methods.
The oil earnings (comprising about 70% of total government income) are forecast to
rise by only 8%. Non-oil income (excluding foreign grants) is projected to increase by
around 15% as the government makes its tax administration more efficient8. The main
exports: Oil, refined petroleum products, fish, coffee, fruits and vegetables, leather,
cotton thread, tobacco, and honey9.
6Mohammed, Abdullah. Hamoud “The Budget As A Control Tool On Petroleum Exploration &
Production Companies In Yemen” Master of Commerce Thesis, University of PUNE, 2005, Pp.72-73. 7Unicef guide “Welcome To Yemen” Yemen, 3rd edition 1995, P.18.
8Country Report, August The Economist Intelligence Unit, 2004 , www.eiu.com
9Unicef guide .Op.Cit. P.22.
145
5.2. PETROLEUM COMPANIES PROFILE IN YEMEN:
The researcher divided the stages of the petroleum companies’ existing in Yemen to
two stages, the first stage starts from the 1931-1970, and second stage starts from 1971-
2000.
5.2.1. The Existence of the Petroleum Companies in Yemen between
1931-1970:
Yemen had entered the searching and exploring field about petrol very late, it still
new in this field and is entering the petrol wealth door.
Yemen until 50s decade was stayed away from the petroleum concessions arena, or
any petroleum exploring activities. The actual searching and exploring process started
only after many years of the revaluation in 26 of September 1962, and the elimination
of the British occupation in 31 of November 1967, i.e. in the half of 70s decade, while
in another parts of Arabian Peninsula the petrol discoveries had started before that by
around 40 years.
The first exist of the petroleum companies was in 1931, when arrived to Yemen the
first American company’s mission from the Standard Oil Company, and had not any
positive results for exploring the petrol 10
.
The beginnings of the petrol in Yemen retraced to the 1937 – 1938, when the
British Petroleum Concessions Limited Company, a branch of Iraq Petroleum
Company, which was granted from British imperator in Aden the right to explore the
petrol at the east and west regions, and started the exploring between the 1938 -1939,
10
Barakat, Ahmed Qaied "The Oil in Yemen" Establishment of Alafief Althaqafia ,Sana'a, 1991, P. 46.
146
and suspended its activities till 1945 because of the Second World War, returned to
explore in 1949-1959, and leaved the country without declaring any results11
.
In 1952, constructed Aden refinery and completed in 1954 with a refining capacity
nearly 170,000 barrels/day, i.e. 8.5 million metric tons per year. In 1977 the refinery
reverted to state ownership, which was formerly owned to the British BP company.
Despite its old age, it is still working with an appropriate amount of competence owing
the former and current maintenance works and modernization. At present refining of
the crude oil for the local market around 80,000 barrels/day.12
In April 1953, Yemen’s government signed a petroleum production sharing with
West German Company C.Dellmnn Bergbau, the contract covered all Yemen area, and
the first stage should be started at Tihama region.
The West German Company abandoned the area according to the contract conditions
without declaring any positive results13
.
In 1959, American Overseas Investment Corporation had the concession rights at the
west region of north of Yemen previously; the company didn't accomplish any activities
or works.
In 1961, American Company signed an agreement at Tihama region. In the same
period at Hadhramout the British Iraq’s Petroleum Company implemented many of
exploring activities, and followed by the American company PAN AM.14
’15
.
11
Atef,Mahmoud Ali " The oil in Yemen, Study in the Geographic Energy" Dar Althqafa Alarabia,
Alsharja,UAE, ed1,2002 P.78. 12
Mohammed, Abdullah. Hamoud. Op.Cit. Pp.81-82. 13
Hanz, Holferten" Yemen from the Back Door" Translated to Arabic language by: Kaeree Hamad, Dar
Alawda Birout, 1985, Pp.156-157. 14
Barakat, Ahmed Qaied .Op.Cit.Pp.41- 42. 15
26 Septemeber.Op.Cit. p.7.
147
In 1961, at the eastern and southern regions, Pan American Oil Company was granted
the right to explore the petrol from the British imperator in Aden, and bought the
available information about the fields at Hadhramout from British’s Iraq Petroleum that
had left the field in 1960. Pan American Oil Company started the drilling, but has not
got petrol and left the field because of the national revolution war against the British
occupied16
.
In 1961, MECOM American Company was granted the concession rights at the
northern field of Tihama region and the company started the drillings but did not get
any positive results and had left the field in 196317
.
Between 1969 – 1970 two agreements were signed to explore the petrol with the
Algeria government at Aden and Sana’a, and established two Yemeni – Algerian
companies named Syapco Company at Aden and Sonatrach Company at Sana’a.
The two companies activities enclosed only in some geophysics surveys at north of
Tihama and north of Hadhramout. Sypaco Company achieved some drillings in the
exploring oil wells at north of Hadhramout that had got cooperation of the Cuba
government18
. The table No 5.1 Shows the existing dates of the petroleum companies in
Yemen in the first stage.
16
Atef,Mahmoud Ali .Op.Cit. P.14. 17
Qaied, Ali Abdullah" Develop the Self Resources of the Foreign Money in Yemen, and the Oil Role in
Yemen in the Present and Future" PH.D Thesis, Alaskandaria Univeristy, 1999, P.221. 18
Barakat, Ahmed Qaied .Op.Cit.P .35
148
Table No 5.1 Illustrates the Petroleum Companies Existing between 1931-1970
Company Nationality Contract
Year
Abandonment
Year
Concession Field
Standard Oil Company USA 1931
Iraq Petroleum British 1937 1960 Al-Mahara&Hadhramout
Dellmnn Germany 1953 1960 Tihama
American oversea USA 1959 West area of north of Yemen
Mecom USA 1961 1963 North of Tihama
Pan American Oil USA 1961 Hadhramout
Syapco Algiaria 1969 North Hadhramout
Sonatrach Algeria 1970 North of Tihama
Designed by researcher
5.2.2. The Existence of the Petroleum Companies in Yemen between
1971-2000:
The 70s decade was the beginning of the favorable indications of the politically and
security peace in Yemen.
On 16 of January 1974, Yemen government signed an agreement for petroleum
exploring with Dutsche Shell Company, according to that contract the company was
granted the right to search in the shore of Red Sea Region .The company abandoned the
field in 1977 19
.
In February 1974, it arrived to the contract between Yemen government (Northern of
Yemen previously) with both of the American company Santa fee, and Japanese
company Toyo Menkaisha Ltd.
The two companies established a compound company for exploring the petrol at the
Red Sea area, actually the born company didn't work in a specific way, and maybe the
19
Albahr, Ali Abdulrahman "Explore the Petrol and its Future Reflects in the Economy of Yemen Arab
Republic" PH.D Thesis, Cairo University,1990, P.111.
149
implicit purpose was to prepare the surveys and studies about the area and sells its
rights in the concession at that area20
.
In 1975, Canadian company saypeanse was granted a concession contract at south of
Socatra field, and left the concession field in 1985 21
.
In addition, in 1976 Techno Export Company P.E.D started its work for exploring the
petrol, and discovered the commercial petroleum quantities in 1987 at Shabowa,
because of the technical difficulties, the company abandoned the region in 199022
.
In 1976, established the Petroleum Exploring Division at the Southern of Yemen
previously, and signed contract to implement geophysical and geological survey with
France Company CGG at Shabwa, Hadhramout and Al-Mahara Governorates for the
period from 1977-1980.
In 1977, signed contract for petroleum concession with Italian Company (Agip) at
Hadhramout, and discovered the petrol in a commercial quantities in 1982, the company
left for political reasons in 1986 23
.
In July 1977, Yemen government signed contract for petroleum exploring with Shell
Company in the offshore field24
.
Many contracts were signed with many companies for exploring the petrol at the
governorates mentioned before, because the drilling results indicated the existing of
petrol at Shabwa and Hadhramout25
.
20
Albahr, Ali Abdulrahman.Op.Cit P.110. 21
Atef,Mahmoud Ali .Op.Cit. P.95. 22
Qaied, Ali Abdullah.Op.Cit. P.221. 23
Atef,Mahmoud Ali .Op.Cit. P.94. 24
Albahr, Ali Abdulrahman .Op.Cit. P.111. 25
Qaied, Ali Abdullah . Op.Cit. P.223.
150
In the late 70s decade, in January 1978, established the General Corporation for
Minerals and Petroleum, which assigned to achieve the works relating to the exploring
and searching about the minerals and petroleum wealth, through the works
accomplished by the contracts with specialist companies.
One of the important contracts was the surveys and some geological and geophysical
works (Gravity & Magnetic), which the General Corporation for Minerals and
Petroleum contracted with the France Company CGG to implement surveys and some
geological and geophysical works (Gravity & Magnetic) at the (Marib-Aljawf) region,
which had the critical role for exploring the petroleum in the region.26
’27
The results of
that survives, many companies bided to get the concessions at that region, in 1981 Hunt
American Company won to sign the petroleum production sharing with the Yemeni
government.28
The drilling started at the first oil well named (Alif field) on 31 of
January 1984, on 4 of March in the same year, explored the commercial petroleum
quantities at the first exploration oil well in Yemen.
In 1982, signed agreement for searching and exploring the petrol with Brazilian
company BrazPetro at Al-Mahara , the company abandoned from the concession field
in 1985 because the partners unwanted to continue the work29
.
In 1983, singed sharing agreement with Kuwait Independent Petroleum group30
. In
the same year 1984, the British Petroleum Company signed the concession rights to
explore at the north part of Tihama region, because of the rarity of the company
financial resources, abandoned the region, and came again in September 1990 requested
26
Hamalainen, pertti “Yemen” Lonely planet publications pty ltd. Australia, 4th
Ed, 1999. P39. 27
Barakat, Ahmed Qaied . Op.Cit. P .35 28
Hamalainen, pertti .Op.Cit. p39. 29
Atef,Mahmoud Ali . Op.Cit. P.108. 30
Ibid. P.109.
151
concession in the same region31
. And in north of Yemen signed many petroleum sharing
agreements with many of companies: In 1983 with P.B, in 1984 with Hunt offshore, in
1985 with EXXON, in 1985 with Total32
.
On 12 of April 1986 officially opened the refinery with production capacity 10000
daily barrels. The Yemeni petroleum company is the supervisor and organized the
transferring and locally marketing33
.
In 1986, France Company Total had concession for exploring at South of Tihama
region, according to sharing contract with Yemeni government. In the same year, the
government signed contract with American company EXXON for exploring the petrol
at the Middle region between Damar and north of Sana’a34
.
The result of the symposium at London in 1987 for promotion of the petroleum
possibilities regions, signed many of the petroleum production sharing with some
companies as: Canadian Occi off Shore, for exploring at Hadhramout and Al- Mahara
regions, C.C.C. for exploring at Hadhramout and Al- Mahara regions, Total Company
also at the same year, i.e. 1987 had granted permit to explore in the eastern part of
Shabwah region35
.
Until the early 1980s, the Yemens were considered an oddity because they were on
the Arabian Peninsula but had no oil36
. In 1989 was established Yemen Company for
Investment in Oil and Minerals (YICOM) that was the first national company to work in
31
Barakat, Ahmed Qaied . Op.Cit. P .35 32
Albahr, Ali Abdulrahman .Op.Cit. Pp113-118. 33
For more details see:
Thabet,Abdulrakeeb Saeed; Ali ,Faisel Abdo " The Oil Refinery Industry and its Environment affects in
Aden Governorate" Magazine of Geographical Association Issue 2,2003,Pp.166-182. 34
Barakat, Ahmed Qaied .Op.Cit.P .38 35
Atef,Mahmoud Ali .Op.Cit.109. 36
Hamalainen, pertti. Op.Cit. p38.
152
the petroleum filed.37
The table No 5.2 shows the existing dates of the petroleum
companies in Yemen for the period between 1971-1989.
Table No 5.2 Illustrates the Petroleum Companies Existing between 1971-1989
Company Nationality Contract
Year
Abandonment
Year
Concession Field
Santafee/Toman USA/Japan 1974 Red Sea
Shell Holland 1974 1977 Red Sea
Saypeanse Canadian 1975 1985 South of Sqatra
Technoexport Soviet/
Russian
1976 1990 Shabowah
Agip Italian 1977 1986 Hadhramout
Hunt USA 1981 2005 Marib/Safer
Petrobraz Brazilian 1982 1985 Al-Mahara
Kuwait petroleum
group
1983
B.P British 1983 North of Yemen
previously
Hunt shore USA 1984 North of Yemen
previously Exxon USA 1985 North of Yemen
previously Total France 1985 North of Yemen
previously Candian Occi
offshore
Canadian 1987 Hadhramout
C.C.C Greece/
Lebnon
1987 Al-Mahara
Total France 1987 Shabowah/South of
Yemen previously
Alif France 1987 Dalta-Aden
YICOM Yemen 1989
Designed by researcher
The unification of the two Yemens in 1990 has facilitated the exploration and
exploitation of oil and gas reserves in the former border region. In 1998, the oil
industry accounted for almost 40% of the economy. Till now Yemen remains a minor
player38
. The table No5.3 shows the companies that have signed a production sharing
agreement with the Yemeni government for the period 1990- 2000:
37
26 Septemeber. Op.Cit. p.46 38
Hamalainen, pertti .Op.Cit. p39.
153
Table No 5.3 Illustrates the Petroleum Companies Existing between 1990-1999.
Company Nationality
NIMIR Saudi Reg.in UK
AGIP Italian
DNO Norwegian
MAYFAIR Indonesian
KERR MCGEE American
CALVALLEY Canadian
DOVE British
MOL Hungarian
PREUSSAGE German
VINTAGE American
OCEAN ENERGY American
OIL AND GAS British
CAN.PET.YEMEN Canadian
Source: Ministry of Planning and Development “Republic of Yemen: 10 Years of Achievements 1990-
2000” p.205.
The Yemeni oil production according to the last issue of the Republic of Yemen
ministry of oil and minerals in the year 2004 is 147,495,009 barrels; and the daily
production average is 402,992 barrels39
. The exporting quantity from Yemeni
government to abroad ranked as: China 17,788,585 barrels, Thailand 23,880,036
barrels, India 12,482,586 barrels, Singapore 442,000 barrels, USA 42,000 barrels, and
Netherlands 1,310,302 barrels40
.
39
Ministry of Oil and Minerals .Op.Cit. p.19. 40
Ibid. p.32.
154
5.3. THE STUDY ANALYSIS:
Here is a discussion of the data collected from the questionnaires, interviews and
observations. This section should provide a bridge for the reader to chapter 6, which
offers the conclusions and recommendations of this study.
Moreover, the interviews and observations addressed to the specialists in both the
Yemeni Ministry of Oil and the Tax Authority. This study is designed to use direct
questionnaires as a main method to collect data about the applying of advance and
modern accounting information systems. A questionnaire provides the most appropriate
method to obtain relevant, up-to-date information from a large sample of petroleum
companies.
Questionnaire participants are asked to rank the performance of various aspects of
their accounting information systems. And a lot of people mentioned in the
acknowledgment were professors and professionals who had reviewed the questionnaire
in details and numerous changes were made to the wording of the questions, the format
of the questionnaire, the questions, the alignment and placement of the text, and the
sequential order of the individual questions. The final version of the questionnaire is 2
pages that every questionnaire contains 23 questions, which take approximately 10
minutes to complete. The questionnaire is divided into 2 parts:
Part I: consists of 7 mostly multiple-choice questions that describe the participation’s
demographics and characteristics of the companies.
Part 2: consists of 16 questions that enquire different forms about the applied
accounting information systems in those companies. The researcher has collected the
required data to test the research hypotheses by distributing questionnaires as the main
155
method to collect the data, interviews and observations during the period from February
2006 – June 2006.
The researcher personally distributed the questionnaires for this study to study
sample of the petroleum companies involved in upstream and downstream activities; the
questionnaire packet included two items:
1. A cover letter issued from Ministry of Oil and Minerals to every petroleum company
manager for introducing the purpose of questionnaire and requesting from Petroleum
Company to fill the questionnaire by the concerned employees in the company
[Specimen of Ministry of Oil letter.See Appendix B],
2. The stapled, 2 pages of “Questionnaire of Accounting Information Systems and its
application in petroleum companies in Yemen”. (Specimen of questionnaire. See
Appendix A), all of those were stuffed in a large, brown Kraft envelope.
The researcher target was to visit all companies engaged in direct performance in the
petroleum fields i.e. upstream and downstream, because of the reasons said in the
limitation of this study the researcher has limited the study sample to 19 companies out
of 24 currently working in Yemen as a study sample.
The sample selected of the petroleum companies was selected according to the last
issue of the Ministry of Oil and Minerals in Yemen. The list contains 24 companies as
shows in the table No5.4 are working in the fields of the Yemeni petroleum, 7 of the
companies are government companies41
, as said above the researcher had visited 19
petroleum companies. The questionnaire was targeted for individuals involved with the
41
Calculated from the Ministry of Oil and Minerals issue “Oil, Gas and Minerals Statistics” Annual
Bulletin issue 2004, Pp.13-15 , and p.78
156
accounting and financial departments of petroleum companies in Yemen. The major
jobs of respondents were accountants, accounts directors and internal checkers.
In the opinion of the researcher, the respondents of the study sample fully represented
the study population i.e. the sample covered 79% of the petroleum companies currently
working in Yemen.
The Table No 5.4 illustrates the companies working currently in the petroleum fields,
i.e. upstream (Exploring and Production )and downstream (Marketing and Refinery)
according to the last issue of the Oil, Gas, and Minerals Statistics, Annual Bulletin
(Issue No.4) 2004, issued from Ministry of Oil and Minerals in Yemen.
Table No 5.4 Illustrates the Petroleum Companies Currently Working in Yemen
No. Company Activity Nationality 1 Safer (previous named Hunt) Production Yemeni
2 Canadian Nexen Production Canadian
3 Jannah Hunt Production USA
4 YICOM Production Yemeni
5 Total Production France
6 Dove Production British
7 DNO Production Norwegian
8 Vintage Production USA
9 Preussag Production German
10 Calvalley Exploration Canadian
11 Oil Search Exploration Australian
12 C.C.C Exploration Lebanese
13 Gallow Oil Exploration Indonesian
14 Mayfair Exploration British
15 Oil, Gas & Minerals Exploration Saudi
16 Occidental Exploration USA
17 MOL Exploration Hungarian
18 OMV Exploration Australian
19 Petronas Exploration Malaysian
20 Aden Refinery Company Refining Yemeni
21 Yemen Company for Oil Refining Refining Yemeni
22 Yemen Company for Gas Nationally Marketing
of the Gas
Yemeni
23 Oil Products Disproportion Company Nationally Marketing
of the Oil
Yemeni
24 General Yemeni Corporation for Oil and
Gas
Abroad Gas & Oil
Marketing
Yemeni
Source: Calculated from the Ministry of Oil and Minerals issue “Oil, Gas and Minerals Statistics”
Annual Bulletin issue, 2004, Pp.13-15, and p.78.
157
A total of 80 questionnaire packets were distributed, the questionnaires addressed to
the accountants, accounts directors and internal checkers in petroleum companies which
asked for answering about accounting information system applied in those companies.
The completed questionnaires responses were received steadily during 3 months.
Of the 88 questionnaires distributed, 63 questionnaires were returned, abandoned 5
questionnaires because of the applying manual accounting system and usable only 58
questionnaires (the computerized, and manual & computerized) representing an
unusually high response rate. As it is shown in the table No 5.5 and figure No 5.1, the
researcher had calculated the respondents’ percentage of (Computerized & Manual
Accounting system and Computerized) which was around 73%. The respondents
percentage was high, because the researcher was exerted all his efforts and time to
contact the respondents. The majority of the Questionable participants were contacted
directly to determine their viability for the study.
Table No.5.5 Illustrates the Respondents According to the Accounting Systems
Types
Accounting system types No. Of Respondents Percent
Computerized & Manual 10 13%
Computerized 48 60%
Manual 5 6%
Unreturned 17 21%
Total 80 100%
Figure No 5.1 Illustrates the Respondents According to the Accounting Systems
Types
0%
20%
40%
60%
Computerized & Manual
Computerized
Manual
Unreturned
158
5.3.1. Respondent’s Demographics and Companies Characteristics:
This paragraph covers the most important demographics and characteristics of the
study sample. As it is shown in the following table No 5.6 and figure No 5.2, the
upstream companies are 55% while the downstream companies are 45 %.
Table No 5.6 Illustrates the Companies Activities
Company Activity No. Of Respondents Percent
Downstream Activities 26 45%
Upstream Activities 32 55%
Total 58 100%
Figure No 5.2 Illustrates the Companies Activities
0%
10%
20%
30%
40%
50%
60%
Downstream Activities
Upstream Activities
According to the sectors of the petroleum companies, as it is shown in the following
table No 5.7 and figure No 5.3 the Private sector is 57 %, while the Public sector is 43
%, the high percentage of the private sector responses, because most petroleum
companies are private sector and foreign companies.
Table No 5.7 Illustrates the Companies Sector
Sector No. Of Respondents Percent
Private Sector 33 57%
Public Sector 25 43%
Total 58 100%
159
Figure No 5.3 Illustrates the Companies Sector
0%
20%
40%
60%
Private Sector
Public Sector
The questionnaires delivered to the staff engaged in finance departments, which it is
shown in the following table No 5.8 and figure No 5.4 consists of Accounts Department
Directors, Accountants and Internal Checkers.
The accountants’ response is 72 %, accounts directors are 14 %, and the internal
checkers are 14 %. The accountants’ responses consider high percentage comprised to
the rest of sample.
In the opinion of the researcher, regarding the high responses of the accountants
returned to two reasons, firstly; the accountants employees numbers more than directors
or internal checkers numbers, and secondly; is that the directors and internal checkers
were busy in the checking and preparing the final accounts statements for the last
financial year 2005, because those questionnaires had delivered in the beginning of the
financial year 2006.
Table No 5.8 Illustrates the Jobs Types
Job No. Of Respondents Percent
Accountants 42 72%
Accounts Director 8 14%
Internal Checker 8 14%
Total 58 100%
160
Figure No 5.4 Illustrates the Jobs Types
0%
20%
40%
60%
80%
Accountants
Accounts Director
Internal Checker
The following table No 5.9 and figure No5.5 show the majority of participation ages,
between 25-45 is 77%.
In the opinion of the researcher, the characters of this stage of ages are youth and
mature, this reflected the high responses of those questionnaires, which the stage of this
ages is the readiness to learn, train and more interesting to accompany the advances and
information technology.
Table No.5.9 Illustrates the Respondents Ages
Age No. Of Respondents Percent
20-25 Years 8 14%
25-45 Years 45 77%
More Than 45 Years 5 9%
Total 58 100%
161
Figure No 5.5 Illustrates Respondents Ages
0%
20%
40%
60%
80%
20-25 Years
25-45 Years
More Than 45 Years
The following table No 5.10 and figure No 5.6 show the majority of the participations
have a bachelor degree.
In the opinion of the researcher, the high percentage of the bachelor degree holders of
employees is because the majority of bachelor degrees are accountants.
As I explained previously the accountants were 72% of the participations and the less
participation were from the postgraduate degrees holders.
In the opinion of the researcher, the petroleum companies do not prefer, who has high
qualification, for the salaries reasons, and they named overqualified, generally the
companies prefer the bachelor degree holders for employment.
Table 5.10 Illustrates the Respondents Qualifications
Qualification No. Of Respondents Percent
Bachelor 44 76%
Diploma 8 14%
Post Graduate 6 10%
Total 58 100%
162
Figure No 5.6 Illustrates the Respondents Qualifications
0%
20%
40%
60%
80%
Bachelor
Diploma
Post Graduate
The followings table No 5.11 and figure No 5.7 show the high percentage of the
respondents have experience more than 6 years is 62%.
This increased the researcher confidence about the answers of the questionnaires; it is
advantage adding to his study, i.e. the questionnaires answers have neutrality and
objectivity based on the long period of respondents experience and knowledge.
Table No 5.11 Illustrates Respondents Experience Years
Experience Years No. Of Respondents Percent
3-6 Years 14 24%
Less than 3 Years 8 14%
More Than 6 Years 36 62%
Total 58 100%
Figure No 5.7 Illustrates Respondents Experience Years
0%
20%
40%
60%
80%
3-6 Years
Less than 3 Years
More Than 6 Years
163
5.3.2. Hypotheses Test:
5.3.2.1. H1:
For testing the first hypothesis (The petroleum companies apply modern systems
in their accounting information systems) the researcher addressed six questions in the
second part of questionnaire. (See appendix A)
The Q 1 about applying ERP systems in respondent’s companies, where ERP systems
represent totalizing technological applications, at the same time ERP software is
becoming increasingly standardized, it is also becoming more pervasive. ERP systems
are viewed as objective responses to technological conditions and economic
competition. As the forces toward ERP adoption and further standardization across
industries and supply chains marches forward, changes in the everyday lives of those
affected by these systems become more pervasive and profound, which the researcher
has mentioned ERP advantages in chapter 3. The respondents answered of Q1 were
14% of them apply ERP systems in the petroleum companies in Yemen, see the table
No 5.12 and figure No5.8.
Table No 5.12 Illustrates Companies Applied ERP
Yes 8 14%
No 50 86%
Total 58 100%
Figure No 5.8 Illustrates Companies Applied ERP
0%
20%
40%
60%
80%
100%
Yes
No
164
The Q2, about applying Case – Based Reasoning systems (CBR) as (Artificial
Intelligence; Expert Systems and Neural Network) which those systems use in
accounting and auditing , which have been developed to perform accounting and
auditing judgments. Auditor analyzes a client’s allowance for bad debts. Tax advisor
does individual estate tax planning. Internal control analyzer evaluates the quality of
internal controls in the revenue cycle, as the researcher has mentioned CBR types and
uses in chapter 3. Only 14% apply that systems according to the respondents answers as
it is shown in the table No 5.13 and figure No 5.9
Table No 5.13 Illustrates the Companies Applied CBR
Yes 8 14%
No 50 86%
Total 58 100%
Figure No 5.9 Illustrates the Companies Applied CBR
0%
20%
40%
60%
80%
100%
Yes
No
The researcher has mentioned in chapter 2, the Accounting information system (AIS)
apart from wide functions of Management Information System (MIS), the researcher
has addressed the Q3, about applying Decision Support Systems (DSS) which basically
used in MIS, which the respondents were only 21% of the petroleum companies apply
the DSS as it is shown in table No 5.14 and figure No 5.10
165
Table No 5.14 Illustrates the Companies Applied DSS
Yes 12 21%
No 46 79%
Total 58 100%
Figure No 5.10 Illustrates the Companies Applied DSS
0%
20%
40%
60%
80%
Yes
No
For knowing the accounting package types applied, the researcher has addressed
opened question for that purpose, which the respondents were 47% apply different
accounting packages, 19% apply Systems, Applications and Product (SAP) and 34%
apply YementSoft package. As it is shown in the table No 5.15 and figure No 5.11
Table No 5.15 Illustrates the Accounting Packages Applied
Accounting Packages No. Of Responses Percent
Different Accounting Packages 27 47%
Systems, Applications and Product (SAP) 11 19%
YemenSoft 20 34%
Total 58 100%
166
Figure No 5.11 Illustrates the Accounting Packages Applied
0%
10%
20%
30%
40%
50%
Different AccountingPackages
Systems, Applications andProduct (SAP)
YemenSoft
The percentages of applying both of ERP and SAP are approximate. Applying ERP
is14% as it is shown in table No 5.12 and figure No 5.8, and SAP is 19% as it is shown
in table No 5.15 and figure No5.11, which the companies applied SAP Software
considered applied ERP systems.
Nevertheless, a high percentage of responses answered about unrepeated failure in
their current accounting information system, which is 16% of respondents answered in
repeated failure, but in the opinion of the researcher, this is a high percentage that
should never happen any repetitive failure in the companies accounting systems. See
table No 5.16 and figure No 5.12
Table No 5.16 Illustrates Accounting System Repetitive Failure
Yes 9 16%
No 49 84%
Total 58 100%
167
Figure No 5.12 Illustrates Accounting System Repetitive Failure
0%
20%
40%
60%
80%
100%
Yes
No
The final question for testing the first hypothesis was that if the companies have plans
to develop their current accounting system, as it is shown in the table No 5.17 and
figure No 5.13, which 53% of the companies have plans to improve the current
accounting systems, on the other hand, 47% don't have plans to improve and modernize
their current accounting information systems.
Table No 5.17 Illustrates the Companies Plans to Develop the Current AIS
Yes 31 53%
No 27 47%
Total 58 100%
Figure No 5.13 Illustrates the Companies Plans to Develop the Current AIS
44%
46%
48%
50%
52%
54%
Yes
No
168
For hypotheses examination, the researcher used the mean as statistical method,
which basically depended on the ratios. If the hypothesis mean ratio was 50% and
above, it is accepted hypothesis, and if the hypothesis mean ratio was less than 50%, it
is refused hypothesis.
For testing the first hypothesis in this study the researcher has calculated the table No
5.18 through the respondents answers in the six questions which have been addressed to
the respondents to get the answers mean as a statistical method.
Table No 5.18 Illustrates the Testing of the First Hypothesis
Q
No.
Yes No Total
Respondents
Percentage Respondents
Percentage Respondents
Percentage
8 8 14% 50 86% 58 100%
9 8 14% 50 86% 58 100%
10 12 21% 46 79% 58 100%
*11 11 19% 47 81% 58 100%
*12 49 84% 9 16% 58 100%
13 31 53% 27 47% 58 100%
Mean 119 34% 229 66% 348 100%
*11: Calculated by taken 19% (SAP) in favorite of the first hypothesis and calculated the rest percentages
47%+34% in opposite side of first hypothesis see table No 5.15
*12: Calculated by taken 84% (Unrepeated failure of AIS) in favorite of the first hypothesis, see table No
5.16
As it is noticed in the above table No 5.18 which is calculated the respondents, whom
their answers were (Yes), is 119, and the total respondents 348 in the six questions.
To get the mean of the six questions, their answers (Yes) should be divided by the
total respondents as follow:
Mean= No. Of (Yes) respondents answers / Total Respondents
Mean = 119 / 348 = 34%
And to get the mean of respondents of answers (No) of the six questions, their
answers should be divided by the total respondents as follow:
169
Mean= No. Of (No) respondents answers / Total Respondents
Mean = 229 / 348 = 66%
As it is seen in the table No5.18 and as it is seen in the mean calculating method, the
first hypothesis has been refused, because the percentage of the respondents answered
by (Yes) only 34%, this indicates unapplied modern technology in accounting
information systems by petroleum companies in Yemen. The above result can assure
that the interviews have addressed by the researcher with some principals of the
Ministry of Oil and Minerals in Yemen, who indicated that there is no existence of any
role of the Ministry in selecting or mandatory the accounting systems or accounting
package applied in the petroleum companies, and the researcher has read some of the
petroleum sharing agreements between Ministry of Oil and some petroleum companies
who hadn't found any clear paragraph directing the petroleum companies to apply any
accounting system or accounting package , which the accounting system or accounting
package objected to the petroleum company selection.
170
5.3.2.2:H2
For testing the second hypothesis (The petroleum companies have skilled
employees to run its modern accounting information systems) the researcher has
addressed one question which consists of five sub-questions in the second part of the
questionnaire, the question No. 14 was about the training programs and courses related
to Accounting Information Systems (AIS) has taken by respondents in petroleum
companies. (See the Appendix A)
The first sub-question, about accounting courses in electronic environment as
(courses in ERP or SAP) has taken by respondents, in which the respondents answers
were only 12% has taken such as that courses as it is shown in table No 5.19 and figure
No 5.14.
Table No. 5.19 Illustrates the Accounting Courses in Electronic Environment
Yes 7 12%
No 51 88%
Total 58 100%
Figure No 5.14 Illustrates the Accounting Courses in Electronic Environment
0%
20%
40%
60%
80%
100%
Yes
No
171
The second sub-question addressed to respondents about training courses in database,
in which the respondents answers were only 19% has taken such as that courses as it is
shown in table No 5.20 and figure No 5.15.
Table No 5.20 Illustrates the Database Courses
Yes 11 19%
No 47 81%
Total 58 100%
Figure No 5.15 Illustrates the Database Courses
0%
20%
40%
60%
80%
100%
Yes
No
The third sub-question addressed to respondents about training courses in Accounting
Information System security, in which the respondents answers were only 16% has
taken such as that courses as it is shown in table No5.21 and figure No 5.16
Table No 5.21 Illustrates the AIS Security Courses
Yes 9 16%
No 49 84%
Total 58 100%
172
Figure No 5.16 Illustrates the AIS Security Courses
0%
20%
40%
60%
80%
100%
Yes
No
The fourth sub-question addressed to respondents about training courses in auditing
in electronic environment, in which the respondents answers were only 7 % has taken
such as that courses as it is shown in table No 5.22 and figure No 5.17
Table No 5.22 Illustrates the Auditing Courses in Electronic Environment
Yes 4 7%
No 54 93%
Total 58 100%
Figure No 5.17 Illustrates the Auditing Courses in Electronic Environment
0%
20%
40%
60%
80%
100%
Yes
No
The final sub-question addressed to respondents about training courses in Case-Based
Reasoning (CBR) in which the respondents answers were only 3 % has taken such as
that courses as it is shown in table No 5.23 and figure No 5.18.
173
Table No 5.23 Illustrates the CBR Courses
Yes 2 3%
No 56 97%
Total 58 100%
Figure No 5.18 Illustrates the CBR Courses
0%
20%
40%
60%
80%
100%
Yes
No
174
For testing the second hypothesis in this study the researcher has calculated the table
No 5.24 as following:
Table No 5.24 Illustrates the Testing of the Second Hypothesis
Q No.14
Yes No Total
Respondents
Percentage Respondents
Percentage Respondents
Percentage
Sub Q. 1
Sub Q. 2
Sub Q.3
Sub Q. 4
Sub Q. 5
7
11
9
4
2
12%
19%
16%
7%
3%
51
47
49
54
56
88%
81%
84%
93%
97%
58
58
58
58
58
100%
100%
100%
100%
100%
Mean 33 11% 257 89% 290 100%
As it is noticed in the above table No 5.24 which is calculated the percentage of the
respondents answers by (Yes) 11%, and the total respondents 290 in the five sub-
questions.
To get the mean of the five sub-questions, the researcher has explained the testing
method in the first hypothesis, is the same to the test of the second hypothesis as follow:
Mean= No. Of (Yes) respondents answers / Total Respondents
Mean = 33 / 290 = 11%
To get the mean of respondents whose answers were (No) of the five sub-questions
has explained in the following:
Mean= No. Of (No) respondents answers/ Total Respondents
Mean = 257 / 290 = 89%
As it is seen in the table No 5.24 and as it is seen in the mean calculating method, the
second hypothesis has been refused, because the percentage of the respondents whose
answered by (Yes) only 11%, this indicates the petroleum companies have not enough
175
qualified and skilled employees to run modern and advance accounting information
system, where the current training courses are insufficient.
The above result can be assured by the interviews which have been addressed with
some principals of the Ministry of Oil and Minerals in Yemen, in which their answers
indicated that there is no existence of any role of the ministry in directing the petroleum
companies regarding the training and program courses of the accountants and
managerial staff, while the Ministry only instructs the petroleum companies to offer
internally and abroad training and program courses in connection with the technicians.
176
5.3.2.3. H3:
The researcher has addressed four questions (See Appendix A) to examine the third
hypothesis (The petroleum companies have advance security plans and systems to
protect its accounting information systems of the risks and threats)
The Q15 answers were only 41% of the petroleum companies have Accounting
Information Systems Auditor, on the other hand, 59% of them don’t have any, as it is
shown in the table No 5.25 and figure No 5.19.
Table 5.25 Illustrates the Companies which have AIS Auditor
Yes 24 41%
No 34 59%
Total 58 100%
Figure No 5.19 Illustrates the Companies which have AIS Auditor
0%
20%
40%
60%
Yes
No
The Q16 for testing the third hypothesis was about the existence of the security
policy to protect the AIS in petroleum companies, in which the respondents answered
were 65% of petroleum companies have Security policy and 35% don’t have any, as it
is shown in table No 5.26 and figure No 5.20.
177
Table No 5.26 Illustrates the Companies which have Security Policy
Yes 38 65%
No 20 35%
Total 58 100%
Figure No 5.20 Illustrates the Companies which have Security Policy
0%
20%
40%
60%
80%
Yes
No
In the table No 5.27 and figure No 5.2,1 the respondents answers of Q17 concerning
about Offsite backup of the accounting information system in the petroleum companies,
in which 52% of petroleum companies maintained backup copies in external locations
of the company. The companies in almost maintained of backup copies in external
locations for overcome of the natural disasters.
Table No 5.27 Illustrates the Companies which Keep Offsite Backup
Yes 30 52%
No 28 48%
Total 58 100%
178
Figure No 5.21 Illustrates the Companies which Keep Offsite Backup
46%
48%
50%
52%
Yes
No
The last question for testing the third hypothesis, which includes some of the security
techniques and tools if currently used in petroleum companies, the researcher has
specified those techniques nevertheless the existence of several of another security
techniques because of that techniques some of them are common and the other are
modern techniques.
As it is shown in the table No 5.28 and figure No 5.22, the Passwords and define of
the authorities and responsibilities approximately used by all the petroleum companies
which passwords is considered the oldest electronic security and controlling tools, and
biometric identification only 5%, nevertheless the advantages of the biometric
identification mentioned in chapter 3 is considered the minimized security technical
used.
Table No 5.28 Illustrates the Security Techniques Applied
Alarms 8 13%
Biometric Identification 3 5%
Cameras 34 58%
Encryption 9 16%
Define of the authorities and responsibilities 51 87%
Passwords 58 100%
179
Figure No 5.22 Illustrates the Security Techniques Applied
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Alarms
Biometric
Identification
Cameras
Encryption
Define of the
authorities and
responsibilitiesPasswords
For testing the third hypothesis in this study the researcher has calculated the table No
5.29 as following:
Table No 5.29 Illustrates the Testing of the Third Hypothesis
Q No.
Yes No Total
Respondents
Percentage Respondents
Percentage Respondents
Percentage
15 24 41% 34 59% 58 100%
16 38 65% 20 35% 58 100%
17 30 52% 28 48% 58 100%
*18.Security Tools:
- Alarms
-Biometric
Identification
- Cameras
- Encryption
-Define of the
authorities and
responsibilities
- Passwords
8
3
34
9
51
58
13%
5%
58%
16%
87%
100%
50
55
24
49
7
0
87%
95%
42%
84%
13%
0
58
58
58
58
58
58
100%
100%
100%
100%
100%
100%
Mean 255 49% 267 51% 522 100%
*18: In security tools the researcher used the percentages of respondents who have those tools and being
used, I. e. they signed in the specified space in questionnaire in front of the tool as a positive answers, and
those who didn’t sign in specified space in font of the tool is taken to be a negative answers.
180
As it is noticed in the table No 5.29 which calculated the respondents whose their
answers (Yes) is 255, and the total respondents are 522 in the four questions.
The Mean= No. Of (Yes) respondents answers/ Total Respondents.
Mean = 255 / 522 = 49%.
To get the mean of the respondents whose answers were (No) of the five sub-
questions has explained in the following:
Mean= No. Of (No) respondents answers/ Total Respondents
Mean = 267 / 522 = 51%.
As it is seen in the table No 5.29 and as seen in the mean calculating method, the
third hypothesis has been refused, because the percentage of the respondents who
answered by Yes 49%, which indicated the petroleum companies have not advanced
and modern security techniques to protect their accounting information system from
risks and threats.
181
5.3.2.4. H4:
For testing the fourth hypothesis (The petroleum companies fully practiced the
international accounting standards (AIS)) the researcher has addressed one question
(See appendix A)to know what are the accounting standards applied in petroleum
companies especially with the lack of the accounting standards issued by Yemen
authorities42
.
As it is shown in the table No 5.30 and figure No 5.23 in which the percentages are
approximately same in rates. The fourth hypothesis has been refused, because the
percentage of the International Accounting Standards (IAS) 36%, therefore the Ministry
of Oil in Yemen should direct the petroleum companies to standardize the accounting
standards according to International Accounting Standards (IAS) regarding to the
extractive industries, which observed through the interviews with principals in Ministry
of Oil and Mineral, there is no existence any role of the ministry in this issue but the
accounting standards and accounting systems objected to the company selection.
42
Alseyh, Abdulhameed Manaa" International Accounting Standards, A study of the Extent of Their Use
in, and Relevance to, the Republic of Yemen" PH.D Thesis, Al-Mustansiriyh University,1998, P.12.
182
Table No 5.30 Illustrates the Accounting Standards Applied
General Accounting Accepted Principles 18 31%
Accounting Standards According to the Company Home Country 19 33%
International Accounting Standards (IAS) 21 36%
Total 58 100%
Figure No 5.23 Illustrates the Accounting Standards Applied
28%
30%
32%
34%
36%
General Accounting
Accepted Principles
Accounting
Standards According
to the Company
Home Country
International
Accounting
Standards (IAS)
183
5.3.2.5. H5:
For testing the last hypothesis (The accounting information systems applied in the
petroleum companies meet up the Yemeni environmental requirements ) the
researcher has addressed four questions (See Appendix A) relating to Accounting
Information Systems outputs which are currently applied in the petroleum companies ,
and AIS outputs to meet the Yemeni environment requirements.
The answers were as follow:
The first question directed to the respondents consists of three information
characteristics: Information Quality, Timing, and Accuracy.
The respondents answers related to information quality were as it is shown in the
table No 5.31 and figure No 5.24, in which the information quality was the excellent by
ranking 58%.
Table No 5.31 Illustrates the Information Quality
Bad 5 9%
To Some Extent 19 33%
Excellent 34 58%
Total 58 100%
Figure No 5.24 Illustrates the Information Quality
0%
20%
40%
60%
Bad
To Some Extent
Excellent
184
The respondents opinions about the information timing also was high percentage
55% is excellent, as it is shown in the table No5.32 and figure No 5.25 but the
researcher has addressed interviews with principals of Ministry of Oil and Minerals,
who indicated the delay of the produced reports offered by petroleum companies, in
which means the reports don't offer at the specific and right time.
Table No 5.32 Illustrates the Information Timing
Bad 7 12%
To Some Extent 19 33%
Excellent 32 55%
Total 58 100%
Figure No 5.25 Illustrates the Information Timing
0%
20%
40%
60%
Bad
To Some Extent
Excellent
The answers about the information accuracy occupied the high percentage too, in
which the information accuracy was 53% is excellent as it is shown in the table No5.33
and figure No 5.26.
Table No 5.33 Illustrates the Information Accuracy
Bad 6 10%
To Some Extent 21 37%
Excellent 31 53%
Total 58 100%
185
Figure No 5.26 Illustrates the Information Accuracy
0%
20%
40%
60%
Bad
To Some Extent
Excellent
Although, the high percentages of information characteristics of the respondents
answers of the individuals in petroleum companies , but in the researcher point of view
that percentages appears as a result of this study relating to characteristics of the
information produced by petroleum companies are not sufficient percentages , and
which should reach to standard percentages i. e 100%.
The question 21 which is considered the second question to test the last hypothesis
was that if there is gap between the AIS outputs currently used and the users' needs. The
answers were also at the positive side, in which 65% of the respondents opinions were
no any gap between the AIS outputs and users needs as it is shown in the table No 5.34
and figure No 5.27.
Table No 5.34 Illustrates the Gap between AIS Outputs and AIS Users
Yes 20 35%
No 38 65%
Total 58 100%
186
Figure No 5.27 Illustrates the Gap between AIS Outputs and AIS Users
0%
20%
40%
60%
80%
Yes
No
To know the extent use of the internal and external users of the reports, in which the
petroleum companies are produced. The researcher has addressed a question about the
produced reports languages. The answers were as the table No 5.35 and figure No 5.28,
in which 9% only produce the reports by English language & Arabic language, in which
there should be the higher percentage because those companies working surely in
environment of the Arabic language speaking 100%.
Table No 5.35 Illustrates the Outputs Language
Arabic language 16 27%
English language 37 64%
Arabic & English languages 5 9%
Total 58 100%
Figure No 5.28 Illustrates the Outputs Language
0%
20%
40%
60%
80%
Arabic language
English language
Arabic & Englishlanguages
187
The final question was to test the last hypothesis of this study which was aiming to
know the extent of the petroleum companies obligations about the reports produced of
the social responsibility. That question consists of four sub-questions about the social
responsibilities which should the companies obligate and report about it.
The first one was about the produced reports about the students training programs, in
which the answers were 45% only preparing the reports about that as it is shown in the
table No 5.36 and figure No 5.29.
Table No 5.36 Illustrates the Students Training Reports
No 26 45%
To Some Extent 6 10%
Yes 26 45%
Total 58 100%
Figure No 5.29 Illustrates the Students Training Reports
0%
10%
20%
30%
40%
50%
Yes
To Some Extent
No
The produced reports about the employees training programs, in which only 35% of
the petroleum companies preparing reports about it as it is shown in table No 5.37 and
figure No5.30, which was in the second hypothesis as it is shown in the table No5.24
the training courses and programs was only 11% that the researcher attributed the
188
difference percentages to the technicians training as directed by Ministry of Oil in
Yemen according to the petroleum sharing agreements.
Table No 5.37 Illustrates the Employees Training Reports
No 32 55%
To Some Extent 6 10%
Yes 20 35%
Total 58 100%
Figure No 5.30 Illustrates the Employees Training Reports
0%
20%
40%
60%
Yes
To Some Extent
No
The produced reports about the companies policy to protect the environment, in
which the answers were 53% of respondents said no existence of any reports about the
environment protecting policies as it is shown in table No 5.38 and figure No 5.31, the
companies should do the utmost efforts in this issue, especially for what was explained
in chapter 4, because Yemen is one of the petroleum producing countries in Middle East
and Yemen is one of the Asian countries, in which Petroleum products from Middle
East crude oil is high in sulfur content43
, and Sulphurdioxide emissions in Asia now are
greater than Europe, USA and Canada combined and, by the year 2020, will grow by an
amount equal to nearly the current emissions in Europe, USA and Canada while
emissions in those areas of the world remain unchanged44
.
43
www.cosmo-oil.co.jp/eng/envi/2003/index.htm 44
“Management accounting and global greenhouse gas emissions” Op.Cit.
189
Table No 5.38 Illustrates the Environment Protecting Reports
No 31 53%
To Some Extent 8 14%
Yes 19 33%
Total 58 100%
Figure No 5.31 Illustrates the Environment Protecting Reports
0%
20%
40%
60%
No
To Some Extent
Yes
The produced reports about the different donations, in which the respondents answers
were 45% only reported about the donations as it is shown in the table No 5.39 and
figure No 5.32. Table No 5.39 Illustrates the Donations Reports
No 26 45%
To Some Extent 6 10%
Yes 26 45%
Total 58 100%
Figure No 5.32 Illustrates the Donations Reports
0%
10%
20%
30%
40%
50%
No
To Some Extent
Yes
190
For testing the fifth hypothesis in this study the researcher has calculated the table No 5.40 as following:
Table No 5.40 Illustrates the Testing of the Fifth Hypothesis
Q No.
Excellent To Some Extent Bad Total
Respondents
Percentage Respondents
Percentage Respondents
Percentage Respondents
Percentage
20.Opinions about:
- Reports Quality
- Reports Timing
- Reports Accuracy
34
32
31
58%
55%
53%
19
19
21
33%
33%
37%
5
7
6
9%
12%
10%
58
58
58
100%
100%
100%
*21 38 65% 0 0 20 35% 58 100%
*22 5 9% 16 27% 37 64% 58 100%
23.Social Accounting Reports:
Sub Q.1
Sub Q.2
Sub Q.3
Sub Q.4
26
20
19
26
45%
35%
33%
45%
6
6
8
6
10%
10%
14%
10%
26
32
31
26
45%
55%
53%
45%
58
58
58
58
100%
100%
100%
100%
Total 231 45% 101 19% 190 36% 522 100%
*21: The researcher has taken (No) answers percentage and put them in favorite side of the hypothesis, and (Yes) answers percentage where put them
in the opposite side of the hypothesis.
*22: In this question the researcher has taken the both of English & Arabic languages as standard measure to test the hypothesis, following that Arabic
language and the third is English language as the researcher said previously, that the petroleum companies working in Arabic speaking environment
the reports should be produced in both Arabic and English languages.
191
As it is noticed in the above table No 5.40 in which calculated the respondents whose
answers (Excellent or Yes) is 231, and the total respondents 522 in the four questions.
The Mean= No. Of (Excellent or Yes respondents) answers / Total Respondents
Mean = 231 / 522 = 45%.
And to get the mean of the respondents whose answers were (To some extent) answer
of the four questions has explained in the following:
Mean= No. Of (To some extent respondents) answers / Total Respondents
Mean = 101 / 522 = 19%.
And to get the mean of the respondents whose answers were (Bad or No) answer of
the four questions has explained as the following:
Mean= No. of (Bad or No respondents) / Total Respondents
Mean = 190 / 522 = 36%.
As it is seen in the table No 5.41 and as seen in the mean calculating method, the fifth
hypothesis has been refused, because the percentage of the respondents who answered
by Excellent or Yes 45%, this indicates that the outputs of the accounting information
systems in the petroleum companies don't meet up the Yemeni environment
requirements.
Because of this hypothesis is directly related to the Yemeni environment, the
researcher has achieved some interviews with principles of both of the Ministry of Oil
and Minerals, and the Tax Authority whose answers are indicated to tax evasion
because the petroleum sharing agreements don’t include any paragraph enable the Tax
Authority to play leading role in controlling and checking the income tax of the
petroleum companies, according to some of the sharing agreements between the
192
Ministry of Oil and Minerals and the petroleum companies which the researcher has
read some paragraphs about exemptions of the petroleum companies which indicate the
following:
(The petroleum company's affiliated companies and their contractors and
subcontractors are exempted from all Yemeni Income taxes and all other taxes and
related taxes of any nature whatsoever payable in Yemen who has achieved work or
contracts to the petroleum company.)
In the researcher’s point of view, this is a wasting of Yemeni wealth by wasting taxes
three times by the companies affiliated to the petroleum company and its contractors
and subcontractors. The Tax Authority only received cheques from Ministry of Oil in
substitution for the petroleum companies because only the Ministry of Oil has the right
to estimating, accounting and treating with the petroleum company concerned the taxes.
The researcher also has observed and met some of the accountants in the concerned
department of controlling the petroleum companies (Petroleum Accounting Dept) in
Ministry of Oil and Minerals and he has found skilled employees but there is extreme
deficiency in the employees number at that department to control all financial
processes, procedures and transactions in petroleum companies, especially in the
upcoming days and years which Yemen has the future horizons to sign agreements with
new companies in upstream and downstream activities in petroleum fields.