Course Overview

Day-by-Day Outline

Day 1 – Fundamentals of Cost Estimation

• - Objectives and importance of cost estimation in E&P projects
• - Types of estimates: conceptual, preliminary, definitive
• - Components of E&P costs: drilling, facilities, subsea, infrastructure
• - Cost breakdown structures (CBS) and work breakdown structures (WBS)
• - Exercise: Build a basic CBS for an exploration well

Day 2 – Estimation Techniques & Tools

• - Analogous, parametric, and bottom-up estimation methods
• - Gathering and validating cost data
• - Use of historical databases and benchmarking
• - Estimation software tools overview
• - Workshop: Perform a parametric estimate for a typical development well

Day 3 – Drilling & Facilities Cost Estimation

• - Cost drivers in drilling: rig rates, consumables, services
• - Well design impacts on cost
• - Estimating topside and processing facility costs
• - Subsea and pipeline cost considerations
• - Exercise: Prepare a cost estimate for an offshore well and platform

Day 4 – Risk, Contingency & Uncertainty Analysis

• - Identifying cost risks and drivers of uncertainty
• - Techniques for contingency estimation
• - Probabilistic estimation: P10, P50, P90 scenarios
• - Sensitivity analysis on key cost parameters
• - Workshop: Build a simple risk-adjusted cost estimate model

Day 5 – Best Practices, Reporting & Case Studies

• - Guidelines for building transparent, auditable estimates
• - Reporting formats for management reviews
• - Integration with economic evaluations (NPV, IRR)
• - Case studies of cost estimation in successful and failed E&P projects
• - Capstone Project: Develop a comprehensive cost estimate for a candidate E&P project

Expected Learning Outcomes

•  Understand the fundamentals of E&P project cost estimation
•  Apply appropriate estimation techniques and tools
•  Identify cost risks and apply uncertainty analysis
•  Prepare realistic, risk-adjusted estimates
•  Present clear, comprehensive cost estimates for decision-making