Instructions: Choose the best answer for each question.
1. What is the primary purpose of the Code of Accounts (COA) in the oil and gas industry?
a) To track and report project expenses accurately. b) To ensure compliance with environmental regulations. c) To determine the profitability of a project. d) To allocate resources to different departments.
a) To track and report project expenses accurately.
2. Which of the following is NOT a benefit of using a Code of Accounts?
a) Accurate cost tracking. b) Streamlined communication between departments. c) Efficient financial reporting. d) Informed decision-making.
b) Streamlined communication between departments.
3. Which level of the COA typically represents the specific cost element of a project?
a) Level 1 b) Level 2 c) Level 3 d) Level 4
c) Level 3
4. Which of the following terms is NOT a common cost category within the oil and gas Code of Accounts?
a) G&G (Geology & Geophysics) b) Exploration c) Production d) Manufacturing
d) Manufacturing
5. Which best practice ensures data comparability across projects?
a) Using a unique COA for each project. b) Standardizing the COA across all projects. c) Regularly reviewing the COA. d) Training project teams.
b) Standardizing the COA across all projects.
Scenario: You are working on a new oil and gas exploration project in the North Sea. The project involves various activities, including geological surveys, drilling operations, and environmental impact assessments.
Task: Develop a basic Code of Accounts structure for this project, using the following cost categories:
Example:
Your task:
Here's a possible solution, with two additional Work Packages:
Project Name: North Sea Exploration Project
1. Work Package: Geological Surveys
* Cost Element: Data Acquisition
* Cost Sub-Element: Seismic Data Acquisition
* Cost Sub-Element: Gravity and Magnetic Surveys
* Cost Element: Data Analysis
* Cost Sub-Element: Seismic Data Interpretation
* Cost Sub-Element: Geological Modeling
2. Work Package: Drilling Operations
* Cost Element: Drilling Rig Rental
* Cost Sub-Element: Offshore Rig Rental
* Cost Sub-Element: Onshore Rig Rental
* Cost Element: Drilling Fluids and Equipment
* Cost Sub-Element: Drilling Mud
* Cost Sub-Element: Drilling Bits and Tools
* Cost Element: Well Completion
* Cost Sub-Element: Casing and Tubing
* Cost Sub-Element: Wellhead Equipment
3. Work Package: Environmental Impact Assessment
* Cost Element: Environmental Surveys
* Cost Sub-Element: Marine Life Surveys
* Cost Sub-Element: Water Quality Testing
* Cost Element: Mitigation Plan Development
* Cost Sub-Element: Environmental Impact Assessment Report
* Cost Sub-Element: Mitigation Strategies and Implementation
Comments