NORSOK Z-014:

A 21st Century Update

One reason oil and gas companies adopt a standard cost coding system is to facilitate benchmarking. NORSOK Z-014 Standard Cost Coding System (SCCS) is an example of this kind of system. This paper describes a set of issues found in a project that attempted to adopt this standard. These were issues whose analysis revealed problems with the standard’s fundamental structure. Further analysis showed that these types of problems are well understood outside the project controls community and resolvable using a classification technique technically known as ‘facets’. The paper provides examples of these issues and indicates how they can be resolved. It also describes the systematic modernization approach adopted by the project to resolve the issues throughout the standard. The aim of this paper is to introduce to the project controls community an understanding of the importance of these issues for raising the quality of their data and the new techniques to provide improved foundations for standard cost coding systems for the oil and gas industry in the 21st Century.