Crude Oil Refinery Plant Cost Estimation and Management
Date | Format | Duration | Fees | |
---|---|---|---|---|
18 Dec - 20 Dec, 2024 | Live Online | 3 Days | $1750 | Register |
Course Overview
This is designed to help the participants gain the needed knowledge and skillset to effectively prepare, adjust accordingly, and control funds and cost in the oil refinery plants. Different strategies shall be taught to enable participants to manage current issues facing huge international refineries, hence efficiently running the already existing projects while implementing prudent and sustainable growth strategies.
How much does it cost to set up an oil refinery?
Strategies and processes of planning and controlling a company’s or plant’s budget for a project or business are called cost management. In the same breath, cost management can be crucial to oil refineries and can be utilised to improve production processes. Successfully managing production costs and controlling cost estimations in a refinery is a major complex problem, but when correctly monitored and controlled, it can be a great tool to help determine refinery unit performance.
Which costing method is used in oil refineries?
It is important to manage cost-effective, especially with the increased competition among refineries. In order to sustain, preserve, and make profits. Cost estimation and management are one of the best ways of effectively planning and monitoring any refinery’s activities and future strategies. Cost estimation will help refiners to improve their production, optimise profits, and do well in competition.
This ZTS course will give participants the power to examine each process equipment such as vacuum distillation machinery and atmospheric equipment, thermal processes, steam boilers, rotating equipment, heaters, compressors, steam boilers, and pumps. It will provide the knowledge to comprehensively review different aspects of cost estimations and management, which form the major cornerstone for any viable refinery profitability and increased production.
Some of the highlights of this course will be:
- Cost estimation and management methods to stimulate effective cost control through the entire refinery
- Effective ways of controlling costs to continue or remain profitable
- Globally accepted standards and practices of cost management in oil refineries
- Income statement structure and major costs
- How to maintain inventory to reduce costs
Course Objectives
After finishing this course, the participants are expected to have mastered to:
- Control cost and manage it effectively
- Evaluate and manage prices
- Asses price volatility
- Analyse prices volatility to make improved decisions
- Utilise the latest tools in cost management and estimation
- Evaluate and determine the costs that are associated with your organisation
- Determine different methods that are used by individual streams of costs in refinery processes
- Use energy-saving techniques effectively to develop and run energy-saving projects
- Improve and enhance the production and management of refinery costs by utilising different cost estimation tools
Training Methodology
This course will be delivered by highly reputable professionals who are masters of their trades with proven learning techniques and models to make sure its contents are better understood.
Different methods will be employed, including group and class discussion of the emerging issues in the modern world. This is in regard to refinery processes. Case studies to illustrate practically the application of relevant topics will be conducted using the ‘Do-Learn-Apply-Review’ model. Illustrative examples from international companies, and discussing relevant issues that might affect your organisation, will be used.
Reinforcement shall be employed through mixed learning methods, including lectures and presentations, and short videos Computer simulations and software utilisation will be provided to show the application of cost estimation and cost management.
Organisational Benefits
Organisations will benefit by:
- Improving cost estimation, control and management
- Being better prepared to manage budges and support cost controls
- Improving their production, sustainability, and profits
- Improving staff intercommunications in matters related to management
- Increasing the knowledge base and increasing financial awareness among the staff who will be possessing the relevant skills learnt from this course
- Improving commitment to the process of developing budgets for cost estimation and control
- Improving adaptability to changes rapidly in the dynamic business world
- Operational and strategic goals alignment
Personal Benefits
- Improved appreciation synthetic index that affects production costs and how they impact the refineries directly
- Great understanding of dealing with strategic and operational risks
- Updated technologies and concepts of dealing with cost control and management
- Enhanced competency in making strategic and operational decisions
- Gaining practical concepts for developing and allocating cost structures in a refinery process unit
- Familiarisation with cost analysis software that is highly effective
- Increased knowledge and understanding of all phases of cost control and management
- Knowledge of the state of the art and international cost management and control methods
- Recognition by the respective organisation for professional learning and commitment
- Improved ability to participate and lead cost management initiatives
- Immersive learning environment challenge to development great cost control skills
Who Should Attend?
This course will interest the following professionals:
- Refining Oil & Gas Field Engineers
- Process Plant Energy Managers / Coordinators
- All Professionals working in Production, Planning and Scheduling
- Blending Professionals
- Financial Analysts
Course Outline
Module 1: Best practices
- Cost analysis and control
- Expenditure monitoring
- Analysis of variance and reporting
- Activity-based costing processes, job order, and process costing
- Cost and value evaluation and analysis
Module 2: Cost management overview
- Energy and its relation to refinery profitability
- Energy control benchmarking
- Costing methodology for steam, power, and fuel
- Energy balance and refinery materials
- Cost management and control introduction
- Cost control and application
- Resources planning
- Cost estimation methods
- Budgeting in regard to cost
Module 3: Costing essentials
- Cost control responsibilities allocation
- Price volatility within the refinery sector
- Income statement examination in detail
- Identification of KPIs in cost control and management
- Cost control culture and how to implement it in an organisation
- Cost of sales calculation in the refinery sector
Module 4: Crude oil refinement
- Maintenance costs
- Refining investments
- Refining costs
- Size and complexity
- Key process units
- The global situation in refinement
- Logistics and location
- Types of refineries
- Process utilisation in a refinery
Module 5: Cost management and estimations
- Costs reducing incentives
- Fixed costs reduction
- Cost behaviour
- Variable costs
- Fixed costs
- Controlling fixed costs
- Cost classifications
- Cost reduction by using inventory control methods
- Analysis of cost volume profit method
Module 6: Process unit operational costs
- Advanced process control and its advantages
- Process simulation
- Process enhancement
- Bottom of barrel upgrading
- Hydrocracking
- Hydrotreating
- Fluid catalytic cracking
- Catalytic reforming
- Separation of crude and processed oil costs
Module 7: Cost management and hedging
- Price volatility hedging
- Risk definition and management
- Options, swaps, futures, and forwards
- Hedging methodologies and techniques
- Cost identification together with risk identification
- Hedging to reduce or eliminate risks
Module 8: Economic evaluation
- Optimisation of steam power systems
- Planning on margins according to regions
- Net refining margins
- Gross refining margins
- Cost estimation
- Netback and refinery complexity
- Fuel loss quantification and oil accounting
- Refinery utility system
- Factors influencing margins
- Energy efficiency
Module 9: Project management and cost management
- Risks management in projects
- Costs effective management skills
- Critical path analysis
- Efficiency of time and quality within budget constraints
- Statistical estimates
- Earned value management
Module 10: Process integration and equipment efficiency
- Pinch introduction
- Heat integration working mechanism
- Heat availability curves
- Equipment efficiency
- Process heat integration and effects on overall costs management and controls
- Rotating equipment
- Heat exchangers
- Fired heaters
- Energy focus in an organisation and how to optimise to get maximum results and profits
- Software used in process simulation and how efficient their results are
- Cost estimates for equipment efficiency and terotechnology