4 days PGP/EMCOU-E
- Engineers involved in Oil & Gas Downstream projects.
- This course provides a thorough knowledge on how to estimate and control the cost of Oil & Gas Downstream projects.
- Upon completion of the course, participants will be able to:
- estimate the cost of a project at its various stages, using an accurate database,
- evaluate the accuracy of this cost estimate and the main risks of cost overrun,
- contribute to project cost optimization and value engineering,
- control the cost of a project during execution.
- Operational knowledge of the Project Management process.
Ways and means
- Each type of estimating method is illustrated by a practical cost estimating exercise (possibly on Excel).
- Use of Internet references (AACEI, Oil & Gas Journal, well-known software tools and databases).
- Group discussions to share feedback experience from participants on actual projects.
Course consistent with the PMI and AACE standards. Worth 24 PDU.
PROJECT COST ESTIMATING METHODS 2.5 days
- Project Management Process reminder, including deliverables at each stage.
- Definitions, cost references, AACE classes. Direct and Indirect costs. WBS. CAPEX vs OPEX.
- Order of magnitude estimate (Chilton factors). Typical accuracy and traps. Localization factors.
- Factored estimate (Lang/Guthrie factors). Escalation, Nelson-Farrar indices.
- Cost of main equipment, of works, of engineering services. Owner costs.
- Semi-detailed estimate, detailed estimate. Key role of engineering studies.
- Elements needed for final approval by Owner and EPC contract endorsement.
COST RISK MANAGEMENT 0.5 day
- Project risk identification and evaluation. Potential impact on cost estimate. Action plan.
- Allowances and contingencies, evaluation through statistical and deterministic methods.
COST CONTROL 1 day
- Principles and purpose of cost control. Responsibilities of Owner and EPC Contractor.
- Cost optimization: brainstorming process, Owner roles and responsibilities. Typical ideas.
- Cost reporting: frequency, consistency with budget/WBS, presentation.
- Relationship between cost control and progress control. Cost forecast to complete.
- Cost reduction during execution. Cost Controller duties. Action plan monitoring.
- Change management: impact of changes, evaluation, decision-making, communication within Owner.