Study On The Cost Analysis And Evaluation Of ABC Oil Production Plant

With the in-depth reform and increasingly competitive international and domesticmarkets of the petroleum and petrochemical industries, the problems of oilfield enterprises’oil and gas cost management and control is more urgent. Compared with the onshore fields，the ABC oil Production Plant has higher development cost and risk as a typical representativeof the offshore oilfield. Cost analysis and evaluation becomes an important part of costmanagement, which is the weak link in the overall cost management system. Designning a setof scientific programs of cost analysis and assessment, which means to supply comprehensiveand systematic analysis to changes in the cost of the ABC oil Production Plant, wouldcontribute to the deep understanding of reasons for the costs lift changes and timely detectionof the main problems in the process of the operation and management of its production. Itprovides an important basis for the preparation of cost plans, adjusting the budget andformulating business decisions while assessing the performance of each responsibility centereffectively and prompting the responsibility center to bear the responsibility on cost control,so as to control production costs, and to maximize the operating efficiency of ABC oilProduction Plant.On the basis of the in-depth study of the cost analysis and assessment and the costdrivers theory, this paper points out the need for the ABC oil Production Plant to strengthencost analysis and assessment, the requirements to its cost analysis and assessment programs,in combination with the current situation and the main problems of cost analysis andassessment in ABC oil Production Plant. Based on the cost driver analysis of the marine oilextraction plant, it trys to look for the drivers of cost elements, design a cost analysis andassessment program for marine oil extraction plant, and then do an empirical analysiscombined with a certain year’s dates of marine oil extraction plant. At last, this paper putsforward safeguards of the implementation of the cost analysis and evaluation programs.