Cost Auditing and Estimation

We have over 30 years experience of developing independent cost estimates, verifying cost estimates and the development of software for cost estimating for oil and gas projects. We are a recognised leader in the assessment of all costs associated with oil and gas projects. Our experience in developing accurate cost estimates covers all phases of oil and gas extraction:

  • Exploration
  • Appraisal
  • Development
  • Production
  • Abandonment 

We have been called on to audit project expenditures of on behalf of stakeholders including: Partners in hydrocarbon development projects, Banks providing loans to Oil and Gas projects and Governments who wish to understand the revenue flow in such projects.

Estimate Class

Maturity Level of Project Definition Deliverables

(Expressed as % of Complete Definition)

End Usage

(Typical Purpose of Estimate)

Class 5

0% to 2%

Feasibility Study

Class 4

1% to 15%

Concept Screening

Class 3

10% to 40%

Budget Authorization or Control

Class 2

30% to 75%

Control Estimate for Tender

Class 1

65% to 100%

Check Estimate for Tender


In carrying out the development of cost estimates or verifications we adopt these standards:

  • Internal working practises developed over 30 years of conducting cost estimating for oil and gas projects
  • AACE International Recommended Practise No. 18R-97, Cost Estimate Classification System, 29th November, 2011

We have developed cost estimates and verification for all usually encountered estimate classes:

In conducting our cost estimating and verifications we cover not just capital costs but also operating costs.

As part of our cost estimating consultancy we are able to conduct analysis and provide advice on:

  • Project Benchmarking
  • Equipment and component benchmarking
  • Cost estimating risks including probability of occurrence.

Our cost estimating skills and data are founded on an extensive cost database that we maintain to support our Netco$ter cost estimating software. We carry out these activities in support of that.

  • Analysis of current oil and gas project cost data
  • Quarterly monitoring of bulk material costs
  • Monthly monitoring of drilling rig rates
  • Annual survey of oil and gas equipment costs
  • Open dialogue with equipment and bulk materials vendor
  • Quarterly survey of key costs on behalf of a number of our clients

We have extensive experience in developing these products: 

  • Class 5 Independent Cost Estimates
  • Class 4 Independent Cost Estimates
  • Class 5 Independent Cost Audits
  • Class 4 Independent Cost Audits
  • Class 3 Independent Cost Audits
  • Class 2 Independent Cost Audits
  • Class 1 Independent Cost Audits
  • Cost Trend Analysis Reports
  • Project Benchmarking Studies
  • Equipment Benchmarking Studies
  • Component Benchmarking Studies
  • Cost Risk Assessment Reports

For Oil And Gas Cost Estimating:

For Oil And Gas Data:

Call Us

+44 1276 548431


Bayphase Limited
2 Princess Way
GU15 3SP
United Kingdom

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