Costing of Oil and Gas Projects for Efficient Management and Sustainability

Abstract

Oil and gas plant is a chaotic web of equipment, piping, buildings e.t.c. The costing of this plant means costing of the processing machines, equipment, pipes etc and other electro-mechanical components including buildings and civil works infrastructure which form the basis of procurement and management of the fluid process. This study reviews the basic considerations, activities and appropriate steps for estimating oil and gas projects. It identified the aloofness of the oil industry and inadequate cost management practices for the sector which controls the commanding height of the Nigerian economy. It recommends among others that Quantity surveyors as the country's construction cost 'watchdog' should in liaison with other professionals exercise effective cost management of process projects as is done by cost engineers abroad to ensure sustainable growth of the Nigerian economy.