Strategies and Structures for Drilling and Service Contracts in the Nineties
- J.P. de Wardt (Shell Intl. Petroleum Mij. B.V.) | J.M.I. van Gils (Shell U.K. E&P)
- Document ID
- Society of Petroleum Engineers
- SPE Drilling & Completion
- Publication Date
- September 1994
- Document Type
- Journal Paper
- 153 - 160
- 1994. Society of Petroleum Engineers
- 4.1.2 Separation and Treating, 1.6.6 Directional Drilling, 1.12.2 Logging While Drilling, 4.1.5 Processing Equipment, 1.11.3 Drilling Fluid Management & Disposal, 1.14 Casing and Cementing, 1.12.1 Measurement While Drilling, 1.4.4 Drill string dynamics, 1.12.3 Mud logging / Surface Measurements, 1.6 Drilling Operations, 1.10.1 Drill string components and drilling tools (tubulars, jars, subs, stabilisers, reamers, etc), 4.3.4 Scale
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Drilling in the nineties initiatives were introduced to the industry in early 1990. Contractual mechanisms for application of these initiatives have been developed. A strategy is developed for integrating services to provide a total service concept either directly through or parallel with a drilling contractor. Development of cooperative customer/supplier relationships are emerging as the way to sustain performance improvements.
Two contracting strategies were designed to meet the long-term aim of drilling in the nineties to have a prime contractor responsible for a well or group of wells as a project. These were introduced to the industry in 1990. Experience has shown that a structured approach to implementing these strategies is necessary to achieve consistent results of the requisite standard.
The initiatives focus on producing and maintaining cost-effective quality wells, which can only be accomplished if work contracted for from drilling and service contractors also focuses on this objective. Old style contracts were geared toward providing equipment and personnel that were used by the operator under its direct supervision. Reaching the objective was, therefore, primarily the responsibility of the operator; contractor resources were not used fully.
Drilling in the nineties represents a change to contracting by results, which necessitates a change to contracting services under a single point of responsibility. The intention is that the contractor will assume this role and thus use its own resources more completely.
Developing the required scope of work, assigning the necessary degree of control, and devising a suitable incentive mechanism require a clear picture of the process to be undertaken and the desired result. Process models may be used to describe processes to which quality improvements are to be applied. Such models have also been applied to drilling and drilling services to achieve the goals described.
The introduction of the concept of improving customer/supplier relationships is leading, through improved dialogue, to better understanding. A structured and fruitful approach to its introduction has been undertaken through the use of contractor/operator joint implementation teams. This initiative opens the debate so that real issues are raised, and where possible, addressed, which has had a positive sustained impact on drilling performance.
|File Size||340 KB||Number of Pages||8|