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Quest Training

Oil & Gas Projects Cost Estimation Methods Training Course

Teaches estimating methods, cost structures, data and assumptions for reliable upstream, midstream and downstream oil and gas project estimates at every stage.

PEEC · Petroleum Economics, Energy Markets & Commercial ManagementAll Levels#2627ClassroomEnglish , Arabic
Duration
5 Days
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Free substitution at any time · 30+ days' notice: full refund minus 10%. Cancellation policy

Sectors:Oil & GasCategories:Petroleum Economics, Energy Markets & Commercial Management

Course Overview

This advanced training course provides a practical framework for developing, evaluating, and managing cost estimates for oil and gas projects across the project lifecycle. It focuses on the estimating methods, cost structures, data requirements, assumptions, and controls needed to produce reliable estimates for upstream, midstream, downstream, and major capital projects. The programme examines the relationship between project scope, engineering maturity, quantities, resources, procurement, construction, commissioning, schedule, and cost. Participants learn how estimate accuracy evolves as project definition increases and how to select the appropriate estimating methodology for each project stage. Particular attention is given to conceptual, preliminary, definitive, and detailed estimating approaches, including analogous estimating, parametric estimating, factor-based methods, equipment-based estimating, quantity-based estimating, and bottom-up estimating. The course also addresses labour, materials, equipment, indirect costs, engineering, procurement, construction, commissioning, contingency, escalation, and project risk. Through practical estimating exercises, cost breakdown development, benchmark analysis, escalation scenarios, contingency assessment, and estimate reviews, participants develop the ability to prepare defensible project cost estimates, identify estimating risks, evaluate estimate quality, and establish effective cost-control baselines.

Learning Objectives

  • Develop advanced knowledge of oil and gas project cost estimation principles and methodologies.
  • Select appropriate estimating methods according to project maturity and scope definition.
  • Develop structured cost breakdown structures for oil and gas capital projects.
  • Estimate direct, indirect, engineering, procurement, construction, and commissioning costs.
  • Apply analogous, parametric, factor-based, equipment-based, and bottom-up estimating techniques.
  • Develop cost estimates from engineering quantities, equipment data, and project specifications.
  • Apply productivity, labour-rate, material-price, and resource assumptions to estimate development.
  • Incorporate escalation, inflation, market conditions, and location factors into project estimates.
  • Assess contingency requirements based on uncertainty, scope maturity, and identified risks.
  • Benchmark project estimates against historical data and comparable projects.
  • Review estimate assumptions, exclusions, allowances, and estimating risks.
  • Establish reliable cost-estimating bases that support budgeting, approval, and project cost control.

Who Should Attend

Cost Estimators and Cost Engineers Project Controls Professionals Project Managers and Project Engineers Cost Control Managers Planning and Scheduling Engineers Engineering and Procurement Professionals Quantity Surveyors and Commercial Professionals Contracts and Tendering Specialists Construction and Commissioning Managers EPC and EPCM Project Professionals Finance and Capital Planning Professionals Oil and Gas Asset Development Teams Professionals involved in project budgeting, estimating, tendering, or cost control

Learning Outcomes

  • Select appropriate cost estimation methodologies for different project development stages.
  • Develop a structured estimating basis from project scope and engineering information.
  • Build cost breakdown structures suitable for oil and gas capital projects.
  • Estimate equipment, materials, labour, construction, engineering, procurement, and commissioning costs.
  • Apply parametric and factor-based methods when detailed quantities are not yet available.
  • Develop bottom-up estimates using quantities, productivity rates, and resource requirements.
  • Apply historical cost data, benchmarks, and reference projects effectively.
  • Adjust estimates for location, market conditions, inflation, escalation, and project-specific factors.
  • Evaluate uncertainty and establish appropriate contingency allowances.
  • Review estimate completeness, assumptions, exclusions, and cost risks.
  • Identify sources of estimating bias and potential cost overruns.
  • Prepare a defensible cost estimate suitable for project budgeting, investment decisions, and cost control.

Course Outline

Day 1

Oil & Gas Cost Estimating Fundamentals & Estimate Classification

  • Principles and objectives of project cost estimation
  • Role of cost estimating throughout the project lifecycle
  • Cost estimating for upstream, midstream, downstream, and infrastructure projects
  • Relationship between project scope, engineering maturity, schedule, and estimate accuracy
  • Project definition and estimating basis
  • Cost Breakdown Structure (CBS)
  • Work Breakdown Structure (WBS) and cost integration
  • Direct and indirect project costs
  • Engineering, procurement, construction, commissioning, and start-up costs
  • Labour, materials, equipment, and subcontractor costs
  • Estimate assumptions, exclusions, allowances, and constraints
  • Estimate classification and accuracy expectations at different project stages
  • Practical Application: Develop an estimating basis and preliminary Cost Breakdown Structure for a selected oil and gas project.
Day 2

Conceptual, Parametric & Factor-Based Estimating Methods

  • Conceptual estimating principles and applications
  • Analogous estimating using historical project data
  • Parametric estimating and cost drivers
  • Capacity-based and scale-factor estimating
  • Equipment factored estimating
  • Installation factors and indirect cost factors
  • Modularisation and fabrication considerations
  • Location and regional cost factors
  • Labour productivity and resource assumptions
  • Developing cost relationships and estimating parameters
  • Benchmarking against comparable projects
  • Limitations, accuracy, and appropriate use of conceptual methods
  • Practical Application: Develop a conceptual estimate using historical benchmarks, capacity factors, and equipment-based estimating techniques.
Day 3

Detailed & Bottom-Up Estimating

  • Principles of detailed quantity-based estimating
  • Quantity take-off from engineering deliverables
  • Equipment, piping, structural, civil, electrical, and instrumentation costs
  • Material pricing and vendor quotations
  • Labour hours, productivity rates, and crew requirements
  • Construction methods and site conditions
  • Procurement and subcontracting costs
  • Engineering and project management costs
  • Construction indirects, temporary facilities, mobilisation, and logistics
  • Commissioning, start-up, and pre-operational costs
  • Developing resource-based cost estimates
  • Estimate reconciliation and internal consistency checks
  • Practical Application: Build a bottom-up estimate for a defined project package using quantities, unit rates, labour productivity, equipment costs, and indirect cost components.
Day 4

Escalation, Contingency, Risk & Estimate Validation

  • Cost escalation and inflation fundamentals
  • Commodity price movements and market volatility
  • Exchange rates and currency effects
  • Regional and location-specific cost adjustments
  • Project risk identification and cost uncertainty
  • Contingency principles and estimating uncertainty
  • Deterministic versus risk-based contingency
  • Risk-adjusted estimating approaches
  • Sensitivity analysis and cost drivers
  • Benchmarking and independent estimate review
  • Estimate reconciliation and variance analysis
  • Assumption validation and estimate quality assessment
  • Practical Application: Evaluate an oil and gas project estimate, identify key uncertainties, calculate appropriate adjustments, and develop a risk-based contingency approach.
Day 5

Estimate Development, Review & Cost Control Integration

  • Developing the final project cost estimate
  • Estimate review and challenge processes
  • Estimate quality assurance and quality control
  • Cost estimate documentation and supporting evidence
  • Basis of Estimate (BoE) preparation
  • Management of allowances, exclusions, and provisional costs
  • Approval processes and project funding requirements
  • Establishing the approved cost baseline
  • Integration of estimates with project schedules and cost control systems
  • Cost reporting, forecasting, and change management
  • Monitoring estimate accuracy throughout project execution
  • Lessons learned and improvement of estimating databases
  • Final Workshop: Develop and review an integrated oil and gas project cost estimate covering scope, quantities, rates, direct and indirect costs, escalation, contingency, risk, assumptions, estimate validation, and cost-control baseline.

Upcoming Dates

Selected date

Lisbon · 27 Sept – 1 Oct 2027 · Classroom

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MarbellaScheduled
2 – 6 Nov 2026€6,000—
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MarrakeshScheduled
2 – 6 Nov 2026€4,700—
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KigaliScheduled
2 – 6 Nov 2026€7,700—
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MilanScheduled
9 – 13 Nov 2026€7,000—
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MunichScheduled
16 – 20 Nov 2026€6,000—
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MuscatScheduled
23 – 27 Nov 2026€6,300€5,670until 2 Nov
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MadridScheduled
23 – 27 Nov 2026€6,000€5,400until 2 Nov
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OnlineScheduled
29 Nov – 3 Dec 2026€2,700€2,430until 9 Nov
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ParisScheduled
7 – 11 Dec 2026€6,700€6,030until 16 Nov
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RiyadhScheduled
14 – 18 Dec 2026€4,800€4,320until 23 Nov
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MakkahScheduled
14 – 18 Dec 2026€4,800€4,320until 23 Nov
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RomeScheduled
21 – 25 Dec 2026€7,000€6,300until 30 Nov
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ViennaScheduled
21 – 25 Dec 2026€6,400€5,760until 30 Nov
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AmmanScheduled
27 – 31 Dec 2026€4,000€3,600until 7 Dec
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AmsterdamScheduled
4 – 8 Jan 2027€6,000€5,400until 14 Dec
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AbujaScheduled
4 – 8 Jan 2027€7,700€6,930until 14 Dec
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BakuScheduled
11 – 15 Jan 2027€5,300€4,770until 21 Dec
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BarcelonaScheduled
18 – 22 Jan 2027€6,000€5,400until 28 Dec
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CairoScheduled
25 – 29 Jan 2027€3,800€3,420until 4 Jan
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AccraScheduled
25 – 29 Jan 2027€7,700€6,930until 4 Jan
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CasablancaScheduled
1 – 5 Feb 2027€4,700€4,230until 11 Jan
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DammamScheduled
8 – 12 Feb 2027€4,800€4,320until 18 Jan
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DohaScheduled
8 – 12 Feb 2027€4,700€4,230until 18 Jan
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DubaiScheduled
14 – 18 Feb 2027€4,700€4,230until 25 Jan
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BangkokScheduled
15 – 19 Feb 2027€6,700€6,030until 25 Jan
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GenevaScheduled
22 – 26 Feb 2027€7,300€6,570until 1 Feb
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HamburgScheduled
1 – 5 Mar 2027€6,200€5,580until 8 Feb
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BeirutScheduled
7 – 11 Mar 2027€4,500€4,050until 15 Feb
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IstanbulScheduled
8 – 12 Mar 2027€5,300€4,770until 15 Feb
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JeddahScheduled
14 – 18 Mar 2027€4,800€4,320until 22 Feb
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LisbonScheduled
27 Sept – 1 Oct 2027€6,000€5,400until 6 Sept
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