Improving Owners Cost Estimating Processes and the “New Normal”

This course on project controls is brought to you by GBRI's partnership with Project Controls Expo. Click here to learn more
Johnson Awoyomi 
·Published on:July 25, 2021

    A national oil company (NOC) in Africa created a Cost Engineering Division (CED) some years ago to serve its entire capital value chain. This presentation describes the approaches and lessons gained in creating the CED. Before then, the various units of the NOC were preparing their own cost estimates without any documented basis, consistency or guidelines. The AACE International TCM Framework® and selected Recommended Practices were used as guides to develop foundational cost engineering procedures and trainings. A key focus was creating awareness of the value of cost engineering because setting up a CED in an NOC is fraught with challenges of acceptability and cultural change. The paper underscores the significant value additions in terms of cost reduction and shows how it has helped to improve cost estimates resulting in better cost control budgets. The CED is now viewed as part of the project sanctioning process and its products are improving capital effectiveness. Finally, the paper identifies a number of issues and offer solutions for the benefit of NOCs, AACE International and industry in general.

    Johnson Awoyomi 

    Group General Manager for Nigerian National Petroleum Corporation

      About Instructor


      144 Courses

      Not Enrolled

      Course Includes

      • 1 Lesson


      Your email address will not be published.

      The journey to become a sustainability guru begins here!
      Jeslin Varghese

      Sustainability education should not have any boundaries!

      Register now to get started.

      GBRI is your #1 source for sustainability education with more than 250 courses to choose from!

      Welcome back!

      Login to access your sustainability courses, certificates, badges, community and more!