Case Study On The Cost Management Of Liaohe Oilfield Shensilian Produced Water Processing Project

The installation projects, which occupy a large proportion in the Capex (investment) of oil field surface facilities, should be controlled seriously. There are some problems in the cost management of Liaohe Oil Field such as outmoded pricing model, static price management, and negligent early decision. It is difficult to control installation project cost and the budget is exceeded often. If the dynamic price management and all stage price management are used, the installation project cost could be controlled well. At that time, the target "low cost and long life" can be achieved for Liaohe Oilfield and the investment benefit can be enlarged.As a case, the cost management of Liaohe Oilfield Shensilian produced water processing project is studied in detailed and the main problems in installation project cost management are found. This paper analyzes the weak links in the cost management of liaohe oilfield, and points out the key links for the project implementation stage of the investment control; through drawing lessons from domestic and international advanced management experience, and in view of the existing problems of the liaohe oilfield installation engineering cost management it also proposes the countermeasures and solutions. Early decision and engineering phase are key stage for controlling the cost of installation project. The all stage price management with focus on the engineering stage should be used in the installation project. The key cost control points are indicated for every construction stage. Active control should be recommended. Project price management is not only the response of investment decision, engineering, bidding, and construction, but also influence investment decision and other project stages. The relationship of advanced technology and reasonable price should be handled correctly. During the installation project performing, technical comparison, economic analysis and benefit evaluation should be done totally. Cost management should be considered continuously in the engineering, construction and other stages.