Annual energy spending in global energy industries is very high and requires cost attention, also to optimize within cost constrains per company or nation. Cost management within the oil & gas and energy industries (and renewables) is important and will benefit from the use of a common and consistent approach to life cycle costing. The ISO 15663:2021 (ed. 1) contains requirements and guidance on how to apply life cycle costing methodologies to provide decision support for selection between alternative competing options and strengthen the industry cost management for business value creation.
This advisory course will demonstrate how this international standard can be used to minimize life cycle cost and add value in the oil & gas industries including lower carbon energy (e.g., offshore wind and renewables). The course will provide practical guidance for how to use and comply with the ISO 15663 life cycle costing methodology (see link below to NS-EN ISO 15663 which is identical to ISO 15663) to enable high-quality decision support for selecting between alternative options (e.g., projects, operational and technical subject matters) across life cycle phases. HSE, sustainability and climate change considerations in the context of life cycle costing are also addressed in the ISO 15663:2021 that now have been adopted in 40+ countries globally.
The course will provide guidance for how to apply and address:
- Key economic evaluation measures such as life cycle cost (LCC), net present value (NPV), payback period and break-even price
- Capital expenditure (CAPEX), operating expenditure (OPEX), and revenue factors (REVENUES or LOSTREV)
- Analysis techniques and models, with required data input
- Identification of cost elements and cost drivers
- Required extent of planning and management of life cycle costing across life cycle phases
- Common and specific contractual considerations for operators, contractors and vendors
Participation at this course will be a unique opportunity to get knowledge and obtain a skillset on life cycle costing. The inter-relationship to ISO 19008 (standard cost coding system) will also be addressed in the course.
This course is organized as a web-based course, by the ISO/TC 67 Working Group: Reliability engineering and technology and in administrative support from Standards Norway, and in cooperation with the University of Stavanger.
Time and location
Time: Tuesday 19 March 2024 and Wednesday 20 March 2024, both days 2.00 pm - 6.00 pm, Central European Time (CET)
Please note that this course is arranged as two consecutive half days.
Location: Web-based (ZOOM)
A link will be sent to all registered participants in advance of the course.
Registration and deadline
Advance registration is required by Friday 9 February 2024. Please note that the registration is binding at date of deadline. Final confirmation that the course will be held will be sent after the deadline.
If you are interested in this course topic, but are unable to attend 19-20 March 2024, you can indicate this in our registration form “Registration of interest
”, and we will contact you if we plan another similar event regarding ISO 15663 at a later date. This form will be possible to fill in after the deadline of 9 February 2024.
Course fee: NOK 4500
Registration contact: Einar Morten Lassesen, Standards Norway, email@example.com
Course contact: Jon T. Selvik, firstname.lastname@example.org
ISO/TC67/WG4 convenor (ISO 15663 project leader): Runar Østebø, Equinor, email@example.com
Please note that on the registration form only the first of the two dates are given, but the registration covers both dates. If you have questions on registration, please contact Standards Norway.
Life cycle costing is the systematic consideration of costs and revenues associated with alternative options required to fulfil the objectives of the business. The 4-step methodology of Life Cycle Costing and associated techniques will be presented as shown in the course agenda.
Application of life cycle costing encompasses use of reliability and maintenance data, production assurance and reliability management information, standard cost coding and production loss estimation. Thus, the different parts of ISO 15663 will be informed about in the course in relation to other interrelated ISO documents developed by ISO/TC67/WG4, i.e., ISO 14224, ISO 20815, ISO 19008 and ISO/TS 3250.
- Runar Østebø, Equinor, ISO/TC67/WG4 convenor and ISO 15663:2021 project leader
- Endre Willmann, technical editor of the ISO 15663:2021 and Norwegian expert member in the ISO 15663:2021 project group
- Guido Mattu, Italian expert member of the ISO 15663:2021 project group
- Andree Van Der Veen, Equinor, ISO 19008 project leader
Runar Østebø is an Advisor in Equinor for subsea technology and operations and has also corporate responsibilities with respect to technology qualification and standardization. He is member of ISO/TC67 management committee and has been involved and responsible for ISO standards development during the last 25 years. He has been the OREDA JIP Steering chairman for a 10-year period, responsible for oil company OREDA data collections over a 20-year period. His experience include reliability management roles for a multitude of national/international oil & gas projects (technology, field development and operations) during his 32 years in Equinor. He has also 10 years previous experience in international risk management consultancy and in drilling & well research, also as blowout expert.
Endre Willmann has 25 years of experience within Offshore and Subsea Systems, working for major Contractors such as Aibel, Vetco Gray and GE Oil & Gas, with main focus on System Engineering, Production Assurance and Reliability Management. He has held lead engineering roles in a significant number of projects spanning across life cycle phases including technology development and qualification, Concept Studies, FEED’s, Tenders, Execution and Aftermarket/Services.
Guido Mattu is an expert in oil & gas projects. He has 40 years of experience in Eni, working in the area of engineering and project management. He has been working in several onshore/offshore projects covering the role of project engineer, project manager, coordinator of the Company project management systems, head of project services (planning and control, risks, workload, lesson learned) and head of project reviews departments. He has long experience in developing international standards for IEC and ISO. He has also presented papers in international conferences organized by PMI (Project Management Institute), IPMA (International Project Management association) and SAVE International®.
Andree Van Der Veen has more than 20 years of experience in the oil and gas industry, both from contractor and operator side. He has experience from several projects as lead estimator, project control manager and project manager. Main areas with special focus have been development of low carbon projects and cost estimation. Andree is currently senior advisor cost estimation in Equinor. He is since May 2023 the ISO/TC67/WG4/PG5 project leader for ISO 19008 revision.
All times are given in CET (Central European Time)
Day 1 – Tuesday 19 March 2024
- 1400 (1) Welcome, course objectives & HSE moment
- 1415 (2) Brief overview of ISO/TC67/WG4 activities
- 1435 (3) General overview of the ISO 15663 standard
- Main clauses and annexes
- Normative versus informative
- 1450 (4) Key terms and definitions
- Short break
- 1530 (5) Application arena, stakeholders and life cycle phases
- 1550 (6) Management of life cycle costing
- Short break
- 1630 (7) 4-step methodology of Life Cycle Costing
- 1710 (8) Implementation and planning of Life Cycle Costing
- 1750 Wrap-up Day 1
- 1800 End of Day 1
Day 2 – Wednesday 20 March 2024
- 1400 (9) Life Cycle Costing techniques – general
- 1420 (10) CAPEX and OPEX
- ISO 19008 relations
- 1450 (11) Revenue / Lost revenue (LOSTREV) - Lost production
- ISO 20815 relations
- ISO/TS 3250 relations
- ISO 14224 relations
- Short break
- 1515 (12) Economic evaluation measures and calculation methods
- Short break
- 1645 (13) Data input
- 1700 (14) Industry benefits from application of ISO 15663 and relations to lower carbon arena
- Case examples from industry and discussion
- 1730 (15) Q&A session with course participants regarding life cycle costing
- 1800 End of course
Note: By participating to the course, each participant will receive a unique and large course compendium and a course certificate.