Cost Estimation And Management In E & P


5 days


10 – 14 April   17 – 21 JUly    23 – 27 Oct      18 – 22 Dec 2024




The Business Xchange Hub, Marco Polo House
3-5 Lansdowne Road, Croydon, Surrey, CR0 2BX United Kingdom

Course Objective:

The fundamental aim of all project execution is to be on schedule and within budget. One of the challenges engineers face prior to project execution is defining a realistic project budget. The other challenge they face during the project execution is then to keep within that budget. In an ever increasingly competitive oil and gas industry, engineers, Finance, and Human resource managers need to demonstrate that they understand the commercial aspects as well as the technical ones. Defining and delivering projects on schedule and within budget is therefore a key attribute. One of the professional skills required for planning and executing an oil and gas project is project cost estimating, budgeting and control. 

The purpose of this course is to provide the tools and technique that are commonly used in project cost estimation, budgeting and control and management of oil and gas projects. The participants will be exposed to typical work scope and key phases in oil and gas project development. The important aspects of time and cost in developing the budget will be explained. The course will help the engineers, Finance, Human resources and officers involved in oil and Gas projects in preparing their discipline cost estimates and project budget as well as controlling the budget.

What will you Learn

  • Typical nature, project work scope and schedule for onshore and offshore oil and gas projects
  • How time and cost will affect the budget
  • The processes and elements in preparing cost estimates
  • Capital expense, operating expense and the life cycle cost
  • Criteria for project selection
  • The processes and elements for preparing project budgets
  • How to control budget and forecast cost at completion
  • The risk factors in cost estimation and budgeting

Who should attend

  • Discipline engineers
  • Project engineers
  • Cost estimating engineers
  • Project planners, schedulers
  • Proposal engineer and executives
  • Human resource officers
  • Finance officers
  • Field development engineers
  • Contract admin executives

This course can also be taken in

Accra: 25 – 29  March           10 – 14 July     09 – 13 Oct      18 – 22 Dec 2024

Dubai:  18 – 22 MARCH       10 – 14 June    19 – 23 Aug     21 – 25 Oct 2024

Texas: On Request

Course Content

• Introduction to Elements of Project Development

  • What are the typical project phases
  • What are the key work scope
  • What are the key project resources

• The Impact of Time and Cost on the Budget Estimate

Basic Cost management Concept

  • Depreciation
  • Inflation
  • Direct and Indirect Cost
  • Overhead
  • Profitability
  • Risk

Cost Estimation Technique

  • Types and processes
  • Capital and Operating Expenses
  • Schedule Assessment and Analysis
  • Schedule Control
  • Schedule Reporting

Time and Cost Estimation

Cost estimate components

  • Exploration and appraisal
  • DRILLEX – drilling
  • CAPEX – facilities
  • OPEX – production
  • ABEX – abandonment
  • Project and owner’s costs
  • Contingency
  • Operator’s reserve

Project Budgeting

Project Budgeting Processes

Cost Element in Project Budget

Criteria for Project Selection

Life Cycle Cost

Spreadsheet for Budgeting

Project Control

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Cost Estimation And Management In E & P

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