Course details

Overview

Content

Training Methodology

Overview ?

Course Description

This is a practical 5-day course covers the issues of actual and standard cost as a control tool, associated with oil and gas operations. Using Oil and gas industry examples and exercises, the participants will learn how to deal with those issues.

Course Goal

To enhance the participants’ Knowledge, Abilities and Skills necessary to understand and apply the concepts, principles, policies, and methods of actual and standard cost as a control tool in Oil and Gas Companies

Course Objectives

By the end of the course the participant will be able to:

Understand the terminology of cost accounting and controls
Deal with the critical issues related to cost accounting and cost control in Oil and Gas Companies

Course Outline

Cost Terms and Purposes

Key Cost Concepts: Cost, Loss, and Waste.
Expense and Expenditure
Inventoriable and Non-inventoriable (Product and Period Costs)
Manufacturing and Non-manufacturing
Direct and Indirect Costs
Fixed and Variable Costs
Actual and Standard Costs
Centers and Cost Allocation

An Overview of Oil and Gas Accounting

Characteristics of Oil and Gas Industry
Acquisition costs: the nature and behavior of Acquisition costs.
Exploration and Drilling cost: Its nature and behavior.
Development cost: Its nature and behavior.
Production cost: Its nature and behavior.
Common Terms Glossary
Generally accepted historical cost methods:
Successful-efforts accounting (SE)
Full-cost accounting (FC)
Overview of Entries under SE and FC

Standard Costs and Control

What is cost control?
Setting Standards
Variance analysis
Efficiency/price variances
Variance Investigation

Standard costs in Oil and Gas Industry

Exploration and Drilling Costs
How to estimate the cost of a well
How to control the cost of a well
Development Costs
How to estimate the cost of development.
How to control costs during the development phase
Production Costs
How to estimate the production operating costs.
How to control and analyze production costs

Day 1

Asset Cost Management Introduction

Definitions of reliability, maintenance & asset management
The total cost of maintenance
Best practice reliability and maintenance processes
Elements of asset management best practice
Auditing performance
Overview of TPM, RCM, BCM, QCM, and other asset management buzzword
Open discussion sessions

Day 2

Laying the Groundwork

Day 3

Applying the Value based Process

Day 4

Ensuring the Continuity of the Value-based Process

Day 5

Supporting Process that Lower Life-cycle costs

Training Methodology

Pathways Training and consulting adopts the newest techniques of human resources Training and consulting and, with the following:

Theoretical lectures are delivered via PowerPoint and visual displays (videos and short films)
Making scientific evaluation to the trainee (before and after)
Brainstorming and role-playing
Using case studies related to the scientific material being delivered and the trainees' work.
The participants get the scientific and practical material printed and on CDs and Flash memories.
Preparing records and reports of the participants' attendance and results, with a general evaluation of the training program.
A group of the best trainers and experts in all fields and specialties professionally prepares the scientific material.
After finishing the course, the participants get certificates of attendance signed, certified, and issued by pathways Training and consulting.
Our training programs start at 9:00 o'clock in the morning and end at 2:00 in the afternoon, with snack buffet during the lectures.
Providing a lunch buffet during the training program period, with organizing a lunch party on the training program final day for taking some photos and certificate awarding.