Study on budget management system based on AFE and Cash Call in overseas petroleum project

Abstract

The situation that Chinese oil companies fully participate in overseas oil and gas competence is taking shape, accompanying with increasing risks. An annual budgeting execution and control system for overseas projects is designed, which includes AFE, Cash Call, LOA, budget adjustment, budget analysis, purchase control, project management, ERP system control and audit, based on summarizing and analyzing the budget system and mechanism, budget content frames of overseas petroleum projects. And these systems and management can guarantee the full implementation of the petroleum contracts, and ensure daily production management to meet the company strategy planning, and realize the strategic goals and the life cycle budget goals year by year.