Upstream Oil and Gas Development life-cycle Costing

Course Information:

Venue:	Duration:	Date:	Price:
Online	15 hours	Flexi-date	£1,950.00
In-House	Agreed with client	Flexible	POA
London	4 days	8 April 2024	£4,250
London	4 days	19 August 2024	£4,250
London	4 days	9 December 2024	£4,250

If you are unable to attend this course on the dates above, please contact us to discuss alternative options.
Please note that prices shown above are exclusive of VAT (20%).

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

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 & 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