Budget and Cost Control of Drilling activity

1. Cost accounting structure & Budget of well cost follow-up: based on same structure as the well cost technical follow-up (level 3 detail of « well view »).
2. « Cost booklet » (or « cost control guide »): to be established jointly between drilling & cost control, to define all the elements of costs (contracts, unit costs, daily rates, etc.). A drilling planning: to be updated & shared with cost control. 
3. Mandatory quote (or Authorization For Expenditure - AFE) by well: to be established by drilling in collaboration with cost control before starting the well.
4. Daily well cost follow-up to be made. Responsibility Drilling entity, in consultation with cost control.
5. Monthly reconciliation: between ”daily well cost follow-up” & costs recorded in SAP; mainly by cost control (accruals & actuals).
6. Monthly cost report: established by cost control, analyzing & commenting actual & EFC versus Budget – Final well report.

Associated modules