We've noticed this is not your region.
Redirect me to my region
What do you want to learn today?

Upstream Oil & Gas Development Lifecycle Costing Learn the fundamentals of lifecycle costing and how to implement cost efficiency at each stage in upstream oil and gas

Inquire Now
On-Site / Training

Details

Submit an enquiry  Book this course
Overview

This engrossing four day course discusses how upstream oil and gas lifecycle costing ('cost forecasting') goes beyond cost estimation and cost engineering to provide a holistic, multi-disciplinary, full-life account of 'where the money goes' in this high-risk, high-reward, capital intensive industry.

The curriculum addresses the costing of long-life, capital-intensive upstream developments, both onshore and offshore, in the face of: uncertain and incomplete information; continually evolving technology needed to address production of ever more difficult resources (such as heavy oil, shale gas, and light tight oil); ever deeper, harsher and more remote environments; and political instability.

Costing of all phases and all aspects of the entire asset (the oil or gas field) is considered, from acquisition, study, and exploration, through to production operations and decommissioning, including aspects which are often neglected, such as: operator's internal costs and operating tariffs.

The course concludes with discussion of fascinating topics that impact reliable costing, such as: human aspects (biases and irrationality), dealing with uncertainty, and why cost forecasts are so often wrong ('train wrecks').

Delivery of the training includes interactive costing exercises, using data and methods discussed during the programme.

Who should attend?
  • Upstream oil and gas industry professionals, managers and discipline experts, who need to gain a deeper understanding of upstream lifecycle costing
  • Persons involved in industry oversight, from regulators, government agencies, non-governmental organisations (NGOs), charities, special interest and campaigning groups that need to better understand the cost constraints under which oil companies operate
  • Early career professionals wishing to advance their understanding of upstream oil and gas costing and economics issues
Learning Objectives

By the end of the course delegates will be able to:

  • Better collaborate within multidisciplinary teams on field development planning tasks leading to investment decisions
  • Give a comprehensive overview of the nature and magnitude of exploration, development, production and decommissioning costs
  • Explain how to express lifecycle costings in cash flow and economic models
  • Describe the challenges of upstream lifecycle costing, and dealing with uncertain and incomplete information

Outline

Upstream Oil & Gas Lifecycle Costing
  • Aspects of the upstream oil and gas exploration, development and production industry.
  • The asset (oil or gas field) lifecycle from acquisition and exploration, through to production and decommissioning
  • Relationship to cost estimation and cost engineering
  • Approaches to costing
  • Bottom-up vs. top-down approaches
  • Analog, benchmarking, parametric and cost metrics approaches
  • Provision for engineering growth, contingency, unallocated provision, operator's reserve
    • Types of cost: exploration; capital (capex), operating (opex) and decommissioning (abex)
Upstream Oil and Gas Lifecycle Cost Components
  • Description of the items (activities, services, wells, facilities) that add to lifecycle costs (so they mean more than just numbers in a spreadsheet)
  • Illustrative costs for all components
  • The parameters ('key-drivers') that most influence the cost of components
  • Cost metrics and rules-of-thumb
  • Building of a cost model
Field Development Planning
  • Introduction of the time element
  • Time value of money, discounted cash flow, basic petroleum economics
  • Cost, production, revenue, cash-flow profiles
  • Building of an economic model
The Wider Context
  • Issues relevant to how costs are prepared, used and influenced
  • Petroleum production licences and contracts
  • Cost 'train wrecks' – when costs go out of control
  • The wisdom (and cost) of front end loading (FEL)
  • Current and future challenges to oil and gas production (and hence to costing)
  • Human aspects (biases, irrationality, vested interest) that can skew costing
  • Dealing with risk, uncertainty and incomplete information
  • Decision making
    • Regional and host-country factors, including productivity and local content issues
Reviews
Be the first to write a review about this course.
Write a Review
International Development Training

AJT specializes in short Corporate and International Development courses between two days and two weeks in length. At AJT, our primary objective is to help develop the skills of our delegates to enable them to tackle existing challenges and grow within their organizations. Our training courses cover virtually all aspects of development, including Research & Data Management, Monitoring & Evaluation, Project Management, Geospatial Information Systems (GIS), Humanitarian Development, Agriculture & Food Security;Climate Change, Health and Social Care,Law & Governance,Energy & Oil, ICT for Development Technology,Team Building and Advanced Management. We also specialize in training statistical research analysis using STATA, SPSS, R, CSPro, ODK, NVIVO and ArcGIS software’s.Our courses have been designed to provide the very best training for all levels – from basic introduction, to intermediary and advanced level. Our courses are delivered in Kenya, South Africa, Nigeria ,Ethiopia and selected locations.

We Help professionals in all fields to develop in the right areas

With clients coming from the Humanitarian and Non Governmental Organizations (NGOs), as well as from the Public and Private sectors, amongst others, it’s fair to say that we have all the bases covered and indeed, if it’s true enlightenment that professionals are interested in, we’re of the firm opinion that the tailored packages that we are able to offer are pretty much unrivalled. In the genre of development training, we strive to be at the leading edge of things and indeed, when it comes to development and humanitarian courses; we believe that we are able to facilitate the needs of one and all. ...

Sending Message
Please wait...
× × Speedycourse.com uses cookies to deliver our services. By continuing to use the site, you are agreeing to our use of cookies, Privacy Policy, and our Terms & Conditions.