Cost Control in Exploration and Production Projects

WACC01  
()

(Project Management)

Outstanding Features

Do you find that your projects are consistently in cost recovery mode? Or do you and your team ask yourself if you’ve made the right cost investment in the project that you have bid for? What happens when there is a scope change mid-project: how well do you adapt?

This course will have participants re-think their traditional approach to cost control, by broadening their thinking and analytical skills beyond routine cost report generation. Participants will be challenged to evaluate cost effectiveness and how it impacts organizational, project and individual performance.

Course Overview

This course examines cost reduction and control in exploration and production projects and looks at factors affecting project cost over the lifetime of an oil and gas project. As well as learning about cost control and how to control project costs, course delegates will look at tools to evaluate project investment, refresh their knowledge of project management concepts and terminology and consider how to recover failing projects.

Target Audience

It is expected that attendees need to learn about cost controls, but no knowledge of project management or prior experience of project management is assumed.

You Will Learn How to

Upon successful completion of this course, you will learn how to:

  • Explain the project lifecycle and the context in which projects operate
  • Describe project benefits management and scope fundamentals
  • Clarify resourcing basics and the cost resources required on projects
  • Explain fundamentals of change control and risk management
  • Conduct an investment appraisal of new prospects
  • Describe and apply cost planning and management principles
  • Monitor and track extended costs and apply risk mitigation
  • Describe performance measurement and management principles
  • Apply conflict and negotiation skills in high-pressure situations
  • Develop a cost control communication plan
  • Apply appropriate leadership skills in the cost control environment
  • Identify early signs of project failure and apply recovery principles

    • Topics

    Projects, their lifecycle and the context in which they operate

  • Evaluation of new prospects
  • Project benefits management
  • Project scope fundamentals
  • Resourcing basics
  • Fundamentals of change control
  • Project risk fundamentals
  • Assessment of risk exposure
  • Risk mitigation
  • Cost planning
  • Investment appraisal
  • Budget construction and evaluation
  • Earned value management
  • Leadership and teamwork
  • Communications, negotiation and conflict
  • Cash flow modelling
  • Cost control
  • Performance measurement and management
  • Recovery concepts
  • Reporting

    • Course Details

    DAY 1

    Introduction to project management and its operating environment

  • Definition of a project, also contrasted with definitions of a programme and a portfolio
  • Definition, purpose and benefits of project management
  • Difference between a project and business as usual
  • Introduction to project risk
  • Introduction to project benefits

    • Project life cycle

  • Definition and phases
  • Reasons for phase structure
  • Extended life-cycle
  • Handover and closeout stages

    • Management structures for projects

    Project roles and responsibilities, including: project manager, project sponsor, project team, project steering board, project management office, project end user

    DAY 2

    Cost planning

  • Introduction to the business case
  • Introduction to the project management plan
  • Key performance indicators
  • Estimating
  • Scope management
  • Product breakdown structure (PBS) and work breakdown structure (WBS)
  • Introduction to project reporting
  • Resource planning
  • Project budget construction
  • Project budget evaluation
  • Risk costing
  • Investment appraisal

    • DAY 3

    Cost management

  • Cost tracking, reporting and control
  • Cost forecasting
  • Controlling change
  • Earned value management

    • Benefits and extended life-cycle costs

  • Benefits management – introduction and purpose
  • Benefits management – cost considerations
  • Value engineering – introduction

    • DAY 4

    Project close-down

  • Close-down phase expenditure
  • Decommissioning considerations
  • Asset disposal

    • Conflict and negotiation

  • Conflict management
  • Negotiation skills

    • DAY 5

    Communication

  • Definition and methods of communication
  • Barriers to communication
  • Effective communication

    • Leadership and teamwork

  • Definition of a leader and a team
  • Role of a team and models of teamwork

    • Recovery

  • Some signs of project failure
  • Recovery principles

    • Course Length

    3 Days

    Course Director

    Peter Benton

    Certifications

    Upon completion of this course, you will receive a Worley Academy Certificate of Completion.

    More Information

    • Please enter your email and we will contact you with more information about this course.