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

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

2- Project life cycle

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

3- 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

4- 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

5- Cost management

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

6- Benefits and extended life-cycle costs

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

DAY 4

7- Project close-down

Close-down phase expenditure
Decommissioning considerations
Asset disposal

8- Conflict and negotiation

Conflict management
Negotiation skills

DAY 5

9- Communication

Definition and methods of communication
Barriers to communication
Effective communication

10- Leadership and teamwork

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

11-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.

Course Schedule