What happened to the daywork contract

Conference · Tue Feb 01 04:00:00 EST 1983 · Soc. Pet. Eng. AIME, Pap.; (United States)

OSTI ID:5699543

Langston, J V

This paper develops the historical roles of the drilling contractor and the operator by categorizing land wells into areas of difficulty and risks. The first area is composed of shallow wells that are suitable for footage drilling. The second group contains wells, usually medium depth, with some risk and hole problems. The third category includes the high risk, deep wells with high pore pressure and protection casing. Since January, 1982, the role of footage drilling has been restored in the first category wells. In category 2 wells, the daywork contracts have been replaced by footage and turnkeys to total depth. In the 3rd category, the footage and turnkeys have been extended through landing and cementing the protection casing after penetrating abnormal pressure. This paper develops that long term, the responsible operator will self insure on the high risk wells by drilling daywork. The responsible, surviving contractor will have to be paid for trouble on each well that can range from 10 to above 30 percent. To the contractor, it's one contract risk that must be covered long term on every well. Even though the footage and turnkeys have the cosmetic appeal of improving the drilling contractor's motivation, the self insured day rate contract is expected to prevail with the operators who drilled numerous wells. The exception will be operation where footage and turnkeys will be useful to establish a firm price.

• Research Organization: Dual Drilling Co.
• OSTI ID: 5699543
• Report Number(s): CONF-830203-
• Conference Information: Journal Name: Soc. Pet. Eng. AIME, Pap.; (United States) Journal Volume: IADC/SPE 11424
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020300* -- Petroleum-- Drilling & Production
020700 -- Petroleum-- Economics
Industrial
& Business Aspects
03 NATURAL GAS
030300 -- Natural Gas-- Drilling
Production
& Processing
030600 -- Natural Gas-- Economic
Industrial
& Business Aspects
CLASSIFICATION
CONFLICTS OF INTEREST
CONTRACT MANAGEMENT
CONTRACTORS
CONTRACTS
COST
DRILLING
MANAGEMENT
NATURAL GAS WELLS
OCCUPATIONAL SAFETY
OIL WELLS
OPERATING COST
PERSONNEL
PROGRAM MANAGEMENT
RISK ASSESSMENT
SAFETY
WELL DRILLING
WELLS