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Cost Estimation Engineer Development Program





Method of delivery

The participants are first taught the knowledge and preparation required to work in the oil and gas service industry from the trainers with working experience in respective area. The concepts are re-enforced through tutorial and industrial related case studies.

After acquired pre-requisite domain and working knowledge in the subject area, the participants are then provided with company specific customised modules such as various management systems, tools and hardware knowledge.  They also receive on-the-job-training through industrial attachment with the host companies. 


Learning Outcome

1.    To equip participants with pre-requisite knowledge required to start working as cost estimation engineers in oil and gas industry. These knowledge are :

  • Malaysia petroleum industry and services industry
  • Field development concepts, planning, economics and cost estimation
  • Essential knowledge of oil & gas project cost management: estimation, budgeting & control
  • Principles of tendering, contracting and procurement management for oil & gas projects
  • Essential knowledge of project management using PMIâ PMBOKâ guide

2.    To equip participants with practical skills of cost estimation in the oil & gas industry through company specific training and industrial attachment arrangement.



Modules & Sub Modules

Part 1: Soft Skills

  • Refer to the common soft skill curriculum for details

Part 2: Technical Essentials

M1: Malaysian oil & gas, services industry and its value chain

  • History
  • Upstream and downstream value chain
  • Technical and HSE risks and management
  • New technologies and innovation
  • Exploration, drilling and appraisal
  • Field development and planning
  • Overview of offshore facilities and platform
  • Process/surface equipment
  • Design & workpack engineering
  • Fabrication
  • Mobilization
  • Installation
  • Hook-up and commissioning
  • Production, operations and maintenance
  • Regulatory environment
  • Production sharing contracts environment
  • Decommissioning and abandonment

M2: Oil & gas field development: cost estimation and economics

  • Oil development CAPEX field development
  • Gas development CAPEX field development
  • Decommissioning and abandonment consideration
  • OPEX considerations and cost estimate
  • Oil development CAPEX field development cost estimate
  • Gas development CAPEX field development cost estimate
  • Revenue and pricing scenarios
  • Basic field development economics

M3: Principles of oil & gas project cost management

  • Elements of project development
  • Impact of Time and Cost on Budget estimates
  • Basic cost engineering concept
  • Cost estimation technique
  • Time and Cost estimation
  • Project budgeting
  • Project budgeting processes
  • Cost element in project budget
  • Criteria for project selection
  • Life cycle cost
  • Project control

M4: Principles of tendering, contracting and procurement management

  • Overview of supply chain process
  • Contracting objectives and policies
  • Tendering relationships and roles and responsibilities
  • Tendering plan
  • Tender processes
  • Tender evaluations
  • Award recommendation and approval
  • Preparation and issue of contract document
  • Understanding contract structure
  • Work execution
  • Management of claims and disputes
  • Management of contract closure
  • Overview of procurement process
  • Sourcing and procurement fundamentals
  • Project scope and developing procurement strategy
  • Project procurement management process
  • Supplier relationships management

M5: Project Management 101: A step-by-step approach using PMIâ PMBOKâ guide

  • Introduction of projects
  • The triple constraint
  • The five project management process group
  • Project initiating
  • Project planning
  • Project executing
  • Project controlling
  • Project closing

Part 3: Company specific customized modules

Modules to be designed specifically for the host companies, such as

  • Health, Safety and Environment policies and procedures
  • Document control systems and procedures
  • Quality Management Systems and ISO 9001 Certification process
  • Overview of fabrication and load-out for offshore structures (example)
  • Fabrication and load-out cost management processes and exercises: estimating and budgeting (example)