Drilling in the Twilight Zone: Somewhere Between Dayrate and Turnkey

Wardt, John de

doi:10.2118/25742-ms

Cited by 6 publications

(1 citation statement)

References 3 publications

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“…Moreover, a day-rate contract can allow for lump-sum payments for specialized tasks, including deployment and layoffs [13,14]. Day-work contracts that are commonly used for drilling wells do not create a possibility for the contractor to make profits that could lead to a rise in efficiency or a reduction in well expenses [17]. Day charges operate on demand and supply dynamics in a way that, when demand for a rig goes beyond supply, day rates increase [11,18].…”

Section: Day-rate Contractsmentioning

confidence: 99%

A Risk Analysis‐Best Worst Method Based Model for Selection of the Most Appropriate Contract Strategy for Onshore Drilling Projects in the Iranian Petroleum Industry

Faraji

Rashidi

Khadir³

et al. 2021

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The pre-project planning phase has a significant impact on the achievement of project objectives because during this stage, major decisions including involving contract strategies are made with a high degree of uncertainty. Studies show that the contract type can play a unique role in the achievement of project success. On the other hand, drilling projects can be considered as one of the most critical types of projects in the petroleum industry. In this research, a novel risk based best-worst method (risk-BWM) is proposed for solving the issue of selecting the best contract strategy. A three level methodology was designed; firstly, the risk breakdown structure (RBS) of drilling projects was created in four levels including one heading in level 0, eight main areas of risk in level 1, 34 sub-areas of risk in level 2, and finally, 217 risk items in level 3. Secondly and on the basis of BWM, the weights of risk factors were determined as the selection criteria and consequently the best and the worst criteria were specified. Finally, using pair-wise comparisons between six types of drilling prevalent in contracts, the most appropriate contract type was proposed. The contribution of this study is the development of a generic RBS for drilling projects and application of the risk factors for the first time for the selection of contract type using the BWM method, which has the potential of being adapted for other types of underground projects.

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Section: Day-rate Contractsmentioning

confidence: 99%

A Risk Analysis‐Best Worst Method Based Model for Selection of the Most Appropriate Contract Strategy for Onshore Drilling Projects in the Iranian Petroleum Industry

Faraji

Rashidi

Khadir³

et al. 2021

Buildings

View full text Add to dashboard Cite

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Teamwork: The Methodology for Successfully Drilling the Judy/Joanne Development

Kelly¹

1994

All Days

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A "non-integrated" approach was used to manage development drilling of the Judy/Joanne field. Phillips Petroleum Company United Kingdom United (the Operator) elected to retain the role of project and operations coordinator. Others have felt it necessary to integrate the provision of drilling services to achieve operational effectiveness. The Operator approached the management of the operation on a more traditional tack but with the same goal. The management emphasis was on team building and ensuring each party's contribution was optimized. The "non-integrated" approach to service provision enabled the Operator to maximize the value of in-house experience, to select the preferred suppliers based on safety and operational performance, and to maintain the leading role required of the lease holder. An incentive contract with the drilling contractor rewarded and penalized performance. It provided a "win/win" arrangement. Contracts with the third party companies were awarded on the basis of "best for purpose". The "non-integrated" approach has proven cost effective and an operational success[1]. INTRODUCTION The Judy/Joanne development project is presently in progress to bring the field on production by first quarter 1996. A jacket platform and subsea cluster shall be used to affect production. The development is of two fields with three reservoir formations. The reservoirs are in the Palaeocene, Cretaceous, and Jurassic/Triassic formations with pore pressures in the order of 15.0 ppg and temperatures of circa 300 degrees Fahrenheit. The development is located in United Kingdom Continental Shelf (UKCS) block 30/7a, 170 miles offshore Scotland. The development drilling of the field is being completed in two phases. The first using the jack-up Santa Fe "Galaxy 1" over a twelve slot drilling template, and the second, using the jack-up Santa Fe "Magellan" to drill five subsea wells. The first stage commenced in May of 1993, and the second in April 1994. This paper deals primarily with the work conducted in the first year of the initial phase, although certain aspects of the project management are common to both operations. The development drilling progress has exceeded anticipated performance[2]. The tasks completed include the following:Setting a drilling template with the jack-up.Batch setting nine conductors,Drilling two 70" holes, running and cementing 120 ft 60.5 inch O.D. 100 tonne jacket docking piles,Drilling seven wells (three of which were horizontal). No Lost Time Accidents (LTA) occurred in the first year, and the rig has successfully completed over 555 days without an LTA. The World Record for footage, drilled in a twenty four hour period was broken twice by the rig. The rig's present record is 8263 ft. This paper shall discuss,The Operators methodology for managing this development drilling project, andThe contractual arrangements made with the drilling contractor and service companies.

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