Cost Accounting & Management in Oil Refinery Operations | 4th – 8th August 2025

Course Overview

This 5-day course provides an in-depth exploration of cost accounting and management practices tailored to the oil refinery industry. Participants will gain practical knowledge of cost analysis, cost control measures, and risk management strategies. Emphasis will be placed on applying advanced costing techniques to optimise profitability while maintaining operational efficiency. The course also incorporates project and contract cost management for large-scale refinery operations.

Course Objectives

By the end of this course, participants will be able to:

1. Identify and manage critical costs and key performance indicators in oil refineries.
2. Implement effective cost control and cost reduction measures across operations.
3. Utilise advanced costing methods, including activity-based costing, to improve decision-making.
4. Apply hedging techniques and risk management strategies to manage price volatility.
5. Optimise project and contract cost management using earned value analysis and other tools.
6. Foster a cost-conscious culture within the refinery organisation.
7. Integrate statistical tools and resource planning for cost-effective project execution.

Target Audience

• Refinery managers and supervisors.
• Cost accountants and financial analysts in the oil and gas sector.
• Operations and project managers in refineries.
• Risk management professionals in the oil industry.
• HSE managers focused on cost efficiency.
• Procurement and supply chain personnel in oil refineries.

Daily Agenda

Day One: The Essentials of Cost & Price Management in the Oil Refinery Sector

• Identification of critical costs and key performance indicators in the refinery sector.
• Detailed examination of refinery income statements.
• Calculation of cost of sales for refinery products.
• Managing cost and price volatility.
• Allocating responsibility for cost control.
• Cultivating a cost control culture within the organisation.

Day Two: Best Practice Costing Methods

• Overview of best practice costing methods.
• Application of job order, process costing, and activity-based costing methods.
• Conducting cost and value analysis.
• Strategies for cost control and expenditure monitoring.
• Performing variance analysis and reporting for operational efficiency.

Day Three: Cost Management & Control

• Classification of costs and analysis of cost behaviour.
• Techniques for controlling fixed and variable costs.
• Strategies for reducing fixed costs.
• Performing Cost-Volume-Profit (CVP) analysis.
• Inventory control measures to reduce costs.
• Designing incentives to promote cost reductions.

Day Four: Hedging Costs & Risk Management

• Hedging techniques to manage costs and price fluctuations.
• Use of forwards, futures, options, and swaps in cost management.
• Identifying and defining costs and risks for hedging.
• Formulating and implementing a risk management strategy.
• Techniques for managing price volatility in refinery operations.

Day Five: Managing Project & Contract Costs & Prices

• Strategies for achieving efficiency of time and quality within budget constraints.
• Statistical estimation of activity duration and costs.
• Application of critical path analysis.
• Manpower and resource planning for optimal cost management.
• Implementation of earned value management techniques.
• Managing project risks in a cost-effective manner.

Target Audience

This course equips participants with the practical tools and strategies required to manage costs effectively in the dynamic oil refinery sector. Combining theoretical insights with practical case studies, the training ensures participants can address complex cost management challenges confidently. The inclusion of project and contract management modules further enhances the relevance of this course for refinery operations.

Learning Outcome

Upon completing this course, participants will:

1. Master cost management techniques applicable to the oil refinery industry.
2. Implement advanced costing methods to optimise financial performance.
3. Apply hedging and risk management strategies for cost control.
4. Improve inventory and resource management to reduce operational costs.
5. Enhance project and contract management practices for budgetary efficiency.