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5.0 (3 Reviews)

E&P Cost Control, Budgeting & Cost Estimating

MDT International, In Aberdeen (+4 locations)
Length
21 hours
Price
1,950 GBP excl. VAT
Next course start
18 November, 2024 (+2 start dates)
Course delivery
Classroom
Length
21 hours
Price
1,950 GBP excl. VAT
Next course start
18 November, 2024 (+2 start dates)
Course delivery
Classroom
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Course description

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This 3-day workshop 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.

What You Will Learn       

  • 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

Upcoming start dates

Choose between 2 start dates

18 November, 2024

  • Classroom
  • Kuala Lumpur
  • English

16 December, 2024

  • Classroom
  • London
  • English

Suitability - Who should attend?

  • 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

Outcome / Qualification etc.

Participants on this course are eligible for 21 hours of CPD accreditation on completion. 

Training Course Content

Overview of E&P Industry Costs

  • Features of E&P industry and nature of costs
  • Costs and cost drivers through the Field Life Cycle
  • The cost curve and relationship to the oil market
  • Significance of management and reporting of costs in the context of the Oil & Gas Industry

The Planning and Budgeting process

  • Company vision and strategy.  Long-term and Medium-term planning
  • Work Programmes and Budget.  Purpose of a Budget and various Budget models
  • The role of Corporate Departments and Geographical Business Units in the budgeting and forecasting process

Cost Planning, Budgets and Forecasting

  • Preparing budgets & forecasts in a volatile oil & gas industry
  • Capture and understanding of costs in the planning and budget processes
  • Preparation of Capex (facilities / wells), Opex and G&A budgets
  • Understanding the importance of classifying cost: fixed / variable; routine / non routine; core / discretionary activities
  • Use budgets to make effective decisions
  • The importance of Forecasting – the “how & why” and the need to proactively capture different outcomes
  • Budgeting and Forecasting as a non-operator in a JV

Cost Capture & Accountability

  • Importance of principles & processes in accurate and timely capture of costs
  • Cost Accounting models. Understanding cost structures, accountability and coding principles
  • Principles on what and when to capture e.g. VOWD and Accruals
  • Capturing costs e.g. completion of full well costs and allocation of costs

Strategic Solutions to Cost Management

  • Understanding “doing more for less”principle on cost optimization
  • Getting behind cost drivers and understanding requisite actions
  • Understanding how different costs impact profit - break even analysis
  • Benchmarking and how it can drive improvements
  • Managing working capital and cash flow

Cost Control and Management in a PSC & JOA Environment

  • Overview on principles of cost recovery in a PSC environment
  • Importance of adhering to key processes to avoid cost leakage
  • Understanding principles of a JOA and Accounting procedures
  • Importance of preparedness for Cost Audits and key areas of contention

Cost Control Framework

  • Overview of a Cost Control Framework
  • Mechanisms for controlling costs: well costs and features of an AFE
  • Project costs reporting – key elements of progress reports
  • Cost control reports – approved, invoiced, committed and incurred cost
  • Controlling costs (fixed and variable) against budgets and forecasts

Cost Performance Reporting

  • Reporting of Capex and Opex costs highlighting key drivers
  • Variance analysis providing root cause analysis and early warning
  • Performance review reporting on cost initiatives and optimization targets
  • Overview of KPIs and performance reporting

Course delivery details

This course is available as a 3-day classroom course or as a live online course which is delivered over 5-days (4 hours per day).

Why choose MDT International

Over 90% of participants say our training met or exceeded their expectations

MDT have worked with 500+ organisations worldwide

Our trainers have 25+ years of experience in the O&G Industry

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Reviews

Average rating 5

Based on 3 reviews.
Reviews are published according to our review policy.
Write a review!
Russel
5/5
28 Jun 2023
Very relatable

It was well organised, proper sequencing of the topic as a result finished on time. Matilde is so engaging and sharing real examples like myself who has been in the oil and gas ...

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Ibukunoluwa
5/5
28 Jun 2023
Gained understanding

It has helped me gain more understanding of cost control in oil and gas processes and the importance of cost recovery.

Emmanuel
5/5
28 Jun 2023
Exceeded expectations

The training met and exceeded my expectations especially regarding cost estimation and contractual activities with vendors.

Expenses

Course Fee: £1950.00 (+ VAT for UK based courses).Fees include your attendance at the relevant training course/s and the provision of a comprehensive training course manual, course completion certificate, plus lunch and refreshments during the training day. Fees do not include accommodation and living costs.

Online Course Fee: £1450 (+ VAT for UK based participants).  Fees include attendance and provision of a comprehensive training course manual plus course completion certificate. Live online training via MS Teams.

MDT International can also provide this course on an in-house course basis, to discuss please submit enquiry. 

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MDT International
MDT International Ltd
45 Albert Street
AB25 1XT Aberdeen

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