The contract should specify which costs are recoverable, the order of recoverability, any limits on recoverability, and whether costs not recovered in one period can be carried forward into the next period. Since title to the oil or gas in-place never passes to the contractor, cost recoverability is the mechanism whereby the contractor is able to recoup the costs that it has expended on a project
This 5-day course is designed to provide participants with the practical aspects of cost recovery. Starting with basic cost concepts, participants will then be exposed to cost recovery factors, activity and effectiveness, capital investment and operating expenses, interrelation between market price, production line and capital, operating cost carryover expense and ceiling of recovery, and concession agreement and cost recovery
To enhance the participant’s knowledge, abilities and skills necessary to understand and apply the concepts, principles, policies, and methods of cost recovery in Oil and Gas Companies.
By the end of the course the participant will be able to:
Understand the basic cost terminology of accounting and controls
Determine cost recovery factors
Define activity and effectiveness
Understand capital investment and operating expenses
Identify the interrelation between market price, production line and capital
Understand operating cost carryover expense and ceiling of recovery.
Be aware with concession agreement and cost recovery
Controllers, senior finance managers, executives and those with expertise in their own fields who need to acquire expertise in financial management