Upstream Oil and Gas Development life-cycle Costing

Course schedule

Classroom Training:
19 - 22 Aug 2024London4 days£4,250
9 - 12 Dec 2024London4 days£4,250

Please note: prices shown above are exclusive of VAT (20%).

Course Overview

Examine the life-cycle costing of upstream oil and gas projects, from exploration through to production, covering cost estimation, budgeting, and economic evaluation.

Who Should Attend

  • Upstream oil and gas industry professionals, managers and discipline experts, who need to gain a deeper understanding of upstream life-cycle 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

Course Outcomes

  • 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 life-cycle costings in cash flow and economic models
  • Describe the challenges of upstream life-cycle costing, and dealing with uncertain and incomplete information

Course Topics

Upstream Oil andamp; Gas life-cycle Costing

  • Aspects of the upstream oil and gas exploration development and production industry
  • The asset (oil or gas field) life-cycle 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 life-cycle Cost Components

  • Description of the items (activities services wells facilities) that add to life-cycle 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

Enquire About an Online Course

Please fill out all the fields below so we can provide the best support we can.

Your Details

Enquire About an In-House Course

Please fill out all the fields below so we can provide the best support we can.

Your Details

Register below for this course

Please ensure all fields are filled out.

Enquire About our Course

Please fill out all the fields below so we can provide the best support we can.

Your Details

Course Download

Please fill out all the fields below to download this course brochure.

Your Details
× Available on SundayMondayTuesdayWednesdayThursdayFridaySaturday