Costing and Budgeting for the Oil & Gas Industry

This course is introductory to intermediate in nature and it has been designed to provide a good level of knowledge and practice across the main aspects of Costing and Budgeting in the Oil and Gas Industry.

During this intensive four day course, delegates will be exposed to the intricacies of management accounting, in particular as they relate to the costing and budgeting aspects in Oil and Gas companies.

In this training programme you will learn how to:

Develop budgeting skills required for better decision-making

Identify & allocate various types of costs in the preparation of a budget

Perform variance analysis and take corrective action steps accordingly

By the end of this course, delegates will be able to:

  • Understand the relationship between the budget and the key financial statements
  • Prepare a budget in line with the organization’s strategic plan
  • Use appropriate estimation techniques in the development of operating (revenue and expense) budgets
  • Identify and calculate appropriate costs to be included in capital budgets
  • Analyse management cost reports and prepare related corrective action plans
  • DAY 1

    The Role of Budgeting and Cost Control

    • Major users and uses of accounting information
    • The cost-benefit and behavioural issues involved in designing an accounting system
    • Planning and Control: The role of budgets and performance reports
    • Potential problems in implementing budgets
    • Types of budgets
    • Introduction to Cost Behaviour and Cost Volume Relationships

    DAY 2

    Traditional Costing

    • Prediction of costs through measurement of cost functions
    • The role of activity analysis in measuring cost functions
    • Measurement of cost behavior through different methods
    • Cost management systems
    • Direct and Indirect costs
    • Cost Allocation methods
    • Comparison of costs between Merchandisers and Manufacturers

    DAY 3

    Traditional Costing and Activity Based Costing (ABC)

    • Absorption and Marginal Costing methods
    • Traditional Costing versus ABC
    • Benefits of ABC
    • Master Budgets
    • Major features and advantages of Master Budgets
    • Principle steps in preparing Master Budgets
    • Operating Budgets and Finance Budgets (within the Master Budgets)

    DAY 4

    Flexible Budgets and Variance Analysis

    • Flexible budgets based on volume of sales
    • Activity based flexible budgets
    • Performance of variance analysis (Budget vs Actual)
    • Capital Budgeting
    • Capital budgeting decisions through Discounted Cash Flow methods
    • Discounted Cash flow methods (NPV, payback model, ARR)
    • Beyond Budgeting
    • Organizational goals and management planning and control
    • Importance of performance evaluation
    • Development of performance measures

This training course uses both conventional and non-traditional techniques. It utilises small group and facilitated plenary discussions as well as instruction to explore key concepts, models, tools and techniques. Hands-on exercises and case studies are used to practice the application of knowledge and use of skills. Structured reviews provide the opportunity to consider how the learning can be applied to the delegates’ own work.

  • D.McKINSEY AND ASSOCIATES Ltd Certificate of Completion for individuals who attend and completes’ Costing and Budgeting for the Oil & Gas Industry course.
  • Candidates who desire International Certifications shall be registered through our platform for such an examination.

4  DAY

D.Mckinsey is licensed to train and issue certificates by the following bodies;

–           Nigerian Council for Management Education, (CMD).

–           OGTAN (Oil and Gas Trainers Association of NIGERIA).

Kindly confirm space availability by calling +234 (0) 8023192104 or +234 (0) 9062386530 or send an email to info@dmckinseyandassociates.com, dmckinseytraining@gmail.com.   For In-House training programs / on request, please contact us using above contact details.

APR 1-4

JUL 8-11

OCT 14-17

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