The Refinery Plant Cost Estimation And Management Revolution

Course overview

This is intended to assist participants in gaining the necessary information and skill set to effectively prepare, change as needed, and control money and costs in oil refinery plants. Different solutions will be given to participants to enable them to manage contemporary difficulties confronting large worldwide refineries, thereby efficiently running existing projects while implementing sensible and sustainable growth strategies.

What is the cost of establishing an oil refinery?

Cost management refers to the strategies and methods for planning and controlling a company’s or plant’s budget for a project or enterprise.  Similarly, cost management is important for oil refineries and can be used to optimize production operations. Successfully managing production costs and regulating cost estimations in a refinery is a significant complex task, but when properly monitored and controlled, it may be a valuable tool in determining refinery unit success.

Which method of costing is employed in oil refineries?

Cost-effective management is crucial, particularly in light of the heightened rivalry among refineries. To maintain, protect, and generate profits. One of the finest ways to efficiently plan and monitor any refinery’s activities and future strategies is through cost assessment and management. Cost estimation will assist refiners in increasing output, maximizing earnings, and succeeding in the marketplace.

The ability to analyze various process equipment, including vacuum distillation gear, atmospheric equipment, thermal processes, steam boilers, rotating equipment, heaters, compressors, steam boilers, and pumps, will be provided through this Training Bee course. It will provide you the knowledge you need to thoroughly evaluate many areas of cost predictions and management, which are the main building blocks of any profitable refinery and higher production.

Introduction

The energy and petrochemical sectors depend heavily on crude oil refineries, which turn crude oil into a variety of useful products like gasoline, diesel, jet fuel, and numerous chemicals. However, there are significant financial commitments and economic issues associated with the building and running of these refineries. For refinery projects to be completed successfully and within budget, the field of knowledge known as crude oil refinery plant cost estimation and management is crucial.

In the context of crude oil refinery plants, this course provides learners with an introduction to the intricate world of cost estimation and management. It gives experts in the fields of project management, engineering, and finance the knowledge and abilities necessary to successfully traverse the financial elements of refinery projects.

We are The Training Bee, a global training and education firm providing services in many countries. We are specialized in capacity building and talent development solutions for individuals and organizations, with our highly customized programs and training sessions.

This course aims to give professionals in the crude oil refinery business a thorough foundation so they can make educated decisions and complete successful projects on time and under budget. It places emphasis on the interplay between technical expertise, business savvy, and proactive risk management, all of which are crucial for the effective and efficient operation of crude oil refinery plants.

Learning Objectives

Upon completing Crude Oil Refinery Plant Cost Estimation and Management, participants will be able to:

• Manage costs and keep them under control.
• Analyze and control pricing
• Identify price volatility
• Analyze price volatility to help you make better choices
• Utilize cutting-edge cost assessment and management systems.
• Analyze and ascertain the expenses related to your organization.
• Determine the various techniques employed by the various cost streams in the refinery processes.

Our Unique Training Methodology

This interactive course comprises the following training methods:

• Journaling – This consists of setting a timer and letting your thoughts flow, unedited and unscripted recording events, ideas, and thoughts over a while, related to the topic.
• Social learning – Information and expertise exchanged amongst peers via computer-based technologies and interactive conversations including Blogging, instant messaging, and forums for debate in groups.
• Project-based learning
• Mind mapping and brainstorming – A session will be carried out between participants to uncover unique ideas, thoughts, and opinions having a quality discussion.
• Interactive sessions – The course will use informative lectures to introduce key concepts and theories related to the topic.
• Presentations – Participants will be presented with multimedia tools such as videos and graphics to enhance learning. These will be delivered engagingly and interactively.

Training Medium

This Crude Oil Refinery Plant Cost Estimation and Management training is designed in a way that it can be delivered face-to-face and virtually.

Course Duration

This training is versatile in its delivery. The training can be delivered as a full-fledged 40-hour training program or a 15- hours crash course covering 5 hours of content each day over 3 days

Pre-course Assessment

Before you enroll in this course all we wanted to know is your exact mindset and your way of thinking.
For that, we have designed this questionnaire attached below.

• What is a crude oil refinery plant’s main function, and why is cost estimate and management significant in this situation?
• What are the main steps or procedures in a typical crude oil refining operation, and could you briefly explain them?
• Describe the primary expenses involved in building and running a refinery for crude oil.
• What are some of the difficulties and dangers that could arise during cost estimation and management for a refinery project?
• What is the distinction between CAPEX (Capital Expenditure) and OPEX (Operating Expenditure) in the context of cost estimation, and why is it significant?
• How can project managers efficiently manage costs during a refinery project’s building and operating phases?

Course Modules

This Crude Oil Refinery Plant Cost Estimation and Management covers the following topics for understanding the essentials of the Agile Workplace:

Module 1 – Highest standards

• Control and cost analysis
• Spending surveillance
• Reporting and variance analysis
• Processes for activity-based costing, job orders, and process costing
• Analysis and evaluation of costs and values

Module 2 – Overview of cost management

• Energy and the profitability of refineries
• Benchmarking of energy management
• Costing procedures for fuel, power, and steam
• Energy balance and materials for refinery
• Introduction to cost management and control

Module 3 – Costing of necessities

• Allocation of responsibility for cost control
• Price swings in the refining industry
• Examining the income statement in depth
• Identifying KPIs for cost management and control
• How to build a culture of cost reduction in your organization
• In the refinery sector, cost of sales calculations are made

Module 4 – Crude oil reprocessing

• Costs of upkeep
• Investing refinement
• Refining expenses
• Dimensions and complexity
• Crucial process units

Module 5 – Estimations and cost management

• Lowering-cost incentives
• Reduced fixed expenses
• Expense behavior
• Variable expenses
• Fixed fees
• Reducing recurring expenses

Module 6 – Operating costs per process unit

• Advantages of advanced process control
• Process modeling
• Procedure improvement

Module 7 – Managing expenses and hedging

• Hedging against price volatility
• Definition and management of risks
• Futures, options, swaps, and forward contracts
• Methodologies and strategies for hedging
• The identification of costs and risks coupled

Module 8 – Economic analysis

• Steam power system optimization
• Considering margins in accordance with areas
• Net margins for refining
• Gross margins for refining
• Cost projection
• Complexity of the refinery and netback

Module 9 – Cost control and project management

• Managing risks in projects
• Efficient management techniques cost
• Analysis of the critical path
• Time and quality management within financial restrictions
• Statistical projections

Post-course Assessment

Participants need to complete an assessment post-course completion so our mentors will get to know their understanding of the course. A mentor will also have interrogative conversations with participants and provide valuable feedback.

• Describe the significance of risk assessment and risk management in the context of cost estimation and management for crude oil refineries. Give some instances of risk elements in these initiatives.
• How can project managers efficiently manage costs during a refinery project’s building and operating phases?
• Describe any particular tools or approaches you learnt about cost estimating during the course and how you would use them in a real-world refinery project.
• Give an instance of a refinery project cost overrun and describe how the knowledge you received from the course could have prevented or mitigated the problem.
• What important lessons or insights did you learn, and how do you intend to use this information in your current job or upcoming endeavors?

Lessons Learned

The design and implementation of a project for a crude oil refinery depend heavily on accurate cost estimation. It aids in obtaining funds, forming wise judgments, and averting expensive overruns.

OPEX vs. CAPEX Difference: It is essential to comprehend the differences between operational expenses (OPEX) and capital expenditures (CAPEX). Better financial planning, budgeting, and resource allocation are made possible by this knowledge.

Comprehensive Risk Assessment: It’s crucial to perform a thorough risk analysis. Cost overruns and project delays can be avoided by identifying potential risks and creating mitigation methods.

Project Cost Control: The prevention of budget overruns during the building and operation phases depends on the use of efficient cost control measures, such as frequent monitoring and reporting.

Understanding of Refinery Processes: A thorough comprehension of the refinery processes is necessary. It enables better decision-making, process optimization, and more precise cost estimation.

Utilization of Cost Estimation Tools: Accurate cost forecasts can be achieved by using various cost estimation tools and techniques, such as parametric estimation and cost indices.

Learning and Adaptation throughout Life: The estimate and management of refinery costs for crude oil are dynamic fields. It’s critical to stay current with business trends, technological developments, and shifting legal requirements.

Collaboration and communication are essential for successful cost management between project stakeholders, including engineers, project managers, and financial specialists.