• Class and Course

    E&P Cost Control, Budgeting & Cost Estimating (Classroom)

    This 3-day classroom course will provide a comprehensive understanding on the nature of costs and cost drivers in the E&P industry providing in-depth understanding on the budgeting process, proactive management, effective control, and optimization of costs together with focused and relevant performance reporting.

      • E&P Industry Costs – understanding and classifying costs
      • Cost Estimate: Drilling
      • Introduction to Budgeting

    Differences in the Oil & Gas industry and why cost control is so important, cost control framework and action plan.  Classifying costs and an introduction to the planning and budget model. Exercises covering Well Costs Estimating and Company Strategy

      • Approaches to Budgeting
      • Corporate / JV and PSC Budget
      • Capturing costs
    Advantages and disadvantages of different budgeting approaches, understanding which costs are incurred in each phase of the field and phases of cost control.  Exercises covering Preparation of a Corporate Budget and Cost Control.

      • Time & Cost Management
      • PSC Environment
      • KPI’s & Ratio Analysis
      • Reporting
    Contracting process and strategies to keep project cost under control, cost optimization and drivers/measurement techniques.  Managing working capital and cash flow. Reporting and performance review with examples of reports.  Exercises covering KPI’s and Performance Measurement.

    • Finance staff with accounting and financial management responsibilities
    • Those responsible for devising budgets, managing and controlling budgets
    • Professionals engaged in planning, budgeting and management reporting
    • Finance & Audit staff engaged on cost and financial controls
    • Business unit managers and personnel whose responsibilities include cost management, controlling budgets and performance reporting

    • Understanding the nature of costs and cost drivers in the E&P industry through the Field Life Cycle 
    • Purpose of the Budget. Planning and Budgeting models. The Strategic and Medium-term plan.
    • Using budgets to make effective decisions. Prepare and understand costs in planning, budgeting & forecasting processes e.g. fixed / variable, CAPEX / OPEX and routine / non-routine.
    • Cost Accounting. Importance of timely cost capture and accurate recording e.g. VOWD / accruals, consistency of coding and clarity on accountability
    • Strategic solutions in delivering cost optimization – “do more for less”
    • Management of costs in PSC and JV environments. Avoiding cost leakage and ensuring audit preparedness
    • Cost Control Framework - budgets, AFEs, progress reports and variance analysis. Understanding key components and ensuring seamless interaction
    • Cost Performance Reporting - use of KPI’s, variance analysis and trend analysis. Tracking and monitoring cost optimization initiatives and targets.


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