Description

Designed for you, if you are...

• Finance staff with accounting and financial management responsibilities
• Professional responsible for devising budgets, managing and controlling budgets
• Professional engaged in planning, budgeting and management reporting
• Finance & Audit staff engaged on cost and financial controls
• Business unit manager and personnel whose responsibilities include cost management, controlling budgets and performance reporting

How we build your confidence

The benefits from attending

• The nature of costs and cost drivers in the E&P industry through the field life cycle
• Purpose of the budget. Planning and budgeting models. The strategic and medium-term plan.
• Using budgets to make effective decisions. Prepare and understand costs in planning, budgeting & forecasting processes e.g. fixed / variable, CAPEX / OPEX and routine / non-routine.
• Cost accounting. Importance of timely cost capture and accurate recording e.g. VOWD / accruals, consistency of coding and clarity on accountability
• Strategic solutions in delivering cost optimization – “do more for less”
• Management of costs in PSC and JV environments. Avoiding cost leakage and ensuring audit preparedness
• Cost control framework - budgets, AFEs, progress reports and variance analysis. Understanding key components and ensuring seamless interaction
• Cost performance reporting - use of KPI’s, variance analysis and trend analysis. Tracking and monitoring cost optimization initiatives and targets

Topics

• Features of E&P industry and nature of costs
• Costs and cost drivers through the field life cycle
• The cost curve and relationship to the oil market
• Significance of management and reporting of costs in the context of the oil & gas industry

• Company vision and strategy. Long-term and medium-term planning
• Work programmes and budget. Purpose of a budget and various budget models.
• The role of corporate departments and geographical business units in the budgeting and forecasting process.

• Preparing budgets & forecasts in a volatile oil & gas industry
• Capture and understanding of costs in the planning and budget processes
• Preparation of CAPEX (facilities / wells), OPEX and G&A budgets
• Understanding the importance of classifying cost: fixed / variable; routine / non routine; core / discretionary activities
• Use budgets to make effective decisions
• The importance of forecasting – the “how & why” and the need to proactively capture different outcomes
• Budgeting and forecasting as a non-operator in a JV

• Importance of principles & processes in accurate and timely capture of costs
• Cost accounting models. Understanding cost structures, accountability and coding principles
• Principles on what and when to capture e.g. VOWD and accruals
• Capturing costs e.g. completion of full well costs and allocation of costs

• Understanding “doing more for less” principle on cost optimization
• Getting behind cost drivers and understanding requisite actions
• Understanding how different costs impact profit - break even analysis
• Benchmarking and how it can drive improvements
• Managing working capital and cash flow

• Overview on principles of cost recovery in a PSC environment
• Importance of adhering to key processes to avoid cost leakage
• Understanding principles of a JOA and accounting procedures
• Importance of preparedness for cost audits and key areas of contention

• Overview of a cost control framework
• Mechanisms for controlling costs: well costs and features of an AFE
• Project costs reporting – key elements of progress reports
• Cost control reports – approved, invoiced, committed and incurred cost
• Controlling costs (fixed and variable) against budgets and forecasts

• Reporting of CAPEX and OPEX costs highlighting key drivers
• Variance analysis providing root cause analysis and early warning
• Performance review reporting on cost initiatives and optimization targets
• Overview of KPIs and performance reporting

Customer Feedback