Title : Agile in-house cost intelligence through human retooling
Abstract:
In an increasingly volatile upstream oil and gas environment, timely and reliable cost estimation is critical to support investment decisions, portfolio optimization, and project governance. Traditional cost estimating practices are often resource-intensive, reliant on fragmented datasets, and heavily dependent on individual expertise, which limits agility and scalability. Recognizing these challenges, Malaysia Petroleum Management (MPM) initiated a transformation of its Cost Engineering function to develop a simplified, rapid, and repeatable cost estimation capability that leverages digitalization, structured data, and human retooling.
This paper presents a case study on the development of an in-house Upstream Cost Calculator, designed to provide quick life-cycle cost (LCC) estimates based on high-level inputs such as recoverable volumes (MMBOE) and selected technical parameters. The tool supports early-stage opportunity screening, concept selection, and benchmarking by translating historical project data and corporate memory into a practical decision-support solution. Beyond technology, the transformation emphasizes the critical role of people, process, and mindset in enabling sustainable cost intelligence.
