Contracts The actual well costs are divided into Fixed costs: casing and tubulars, logging, cementing, drill bits, mobilization charges, rig move Daily costs: contractor services, rig time, consumables Overheads: offices, salaries, pensions, health care, travel. A fairly significant charge is usually made by the drilling contractor to modify and prepare the rig for a specific drilling campaign. This is known as a mobilization cost. A similar charge will cover ‘once off’ expenses related to terminating the operations for a particular client and is called a demobilization cost. These costs can be significant, say 5–10 million US$. the actual costs of a well show considerable variations and are dependent on a number of factors, for example: type of well (exp...
Well planning The drilling of a well involves a major investment, ranging from a few million US$ for an onshore well to 100 million US$ plus for a Deepwater exploration well. Well engineering is aimed at maximizing the value of this investment by employing the most appropriate technology and business processes, to drill a ‘fit for purpose’ well, at the minimum cost, without compromising safety or environmental standards. Successful drilling engineering requires the integration of many disciplines and skills. Successful drilling projects will require extensive planning. Usually, wells are drilled with one, or a combination, of the following objectives: to gather information to produce hydrocarbons to inject gas or water to maintain reservoir pressure or sweep out oil to dispose of water, drill cuttings or CO2 (sequestration). To optimize the design of a well it is desirable to have as accurate a picture as possible of the subsurface. Therefore, a number of discipli...