The Case Study On Cost Controlling Of Sulige Gas Field Ground Project

Sulige gas field is the largest fully equipped land-based gas field in China, its production has exceeded 100 billion m3, and it is an important gas source of national "west-east natural gas transmission" project. But it has special natural environment and geological conditions, and there no management experience for reference, so how to reduce costs of Sulige gas field effectively is an important problem that the Chinese National Petroleum Corp. concerns. In recent years, the investment of gas field ground project accounts for the 30% to 40% of Gas Field investment, therefore, the ground engineering cost controlling become one of the most important parts for the investors.Cost controlling is an important part of project management. How to control cost rationally and effectively and achieve the budget target is a core task of project cost management.In this paper, cost controlling problem in the gas field ground project was analyzed through case study. Firstly, the paper introduced the gas field, characteristics of SLG gas field ground engineering and its process, and revealed the main problems of project cost controlling and its disadvantages from the cost constitution, budget execution, cost structure and other aspects of SLG gas field ground engineering. Secondly, based on the analysis of the related theory of cost controlling, the paper studied the main reasons of the ineffective cost controlling of the SLG gas field ground project. The reasons included: weak awareness of the cost management, the immature systems and management methods, the poor organization and coordination, the lack of human resources of cost management, and other uncertainty factors. Finally, some cost controlling strategies were proposed for SLG gas field ground project witch include:improving the awareness of all employees'cost controlling, making better the project cost management system and methodology, promoting the project management of the whole process cost, enhancing the efficiency of all-round coordination, and optimizing other security measures.