Specific cost breakdown onshore exploration wells

For comparison with the offshore well discussed in section 2,1, the following represents a shallow 1000 m European land well to be drilled in 1990. The cost breakdown is for a 1000 m well with 7 inch casing set at 500 m and 6 inch hole drilled to TD. It is assumed that there are two days spent coring, the well is then logged and abandoned. Estimated days on well is a total of 20. Site survey, rental, preparation and restoration Breaking down these costs into fixed, daily and unit costs, we find...

Authorisation For Expenditure

How Many Site Office Personnel

The AFE is the tool that is used for predicting the cost of a proposed well. The accuracy of the AFE depends on the amount of available information used to construct it. As operators, we need to know how much a well is going to cost if it is dry, tested or completed. Consequently, AFEs should be broken down into sections to fllow us to see at a glance how the various well options compare financially. In this section, we look at the component parts of AFEs for onshore and offshore wells. At Nor...

Contractors expenditure

Before looking at how the contractor can make money from a contract, his expenses should be understood. These costs can be broken down into 11 groups. If the contractor can, by manipulating the contract, get the operator to assist in any of the above expenses, then the contractor's profitability will increase. This concept must be fully understood by the operator to ensure that he is aware that what seems a small concession by the operator, could increase the contractor's profitability...

Well Planning Process

The well planning process can be broken down into stages. Each stage is discussed in more detail later on in this chapter. Chapters 13 and 14 show how the well planning process fits into the overall drilling operation. Why is the well to be drilled Will it be a wildcat exploration well or an appraisal or development well 2. Obtaining consent to drill from authorities All relevant data from seismic surveys and offset well reports must be scrutinised to ensure that the optimum drilling programme...

Surface flow head surface test tree

The surface flow head is the primary closing and safety assembly located on the surface. The surface flow head is attached to the top of the test string, sufficiently high above rotary table to accommodate rig heave. It should have a pressure rating equal to or greater than the maximum expected surface pressure, and have sufficient tensile strength to pick up the weight of the test string to unseat the packer. The assembly consists of various components and the components selected for each test...

Of Drilling Operations

At present, as the oil industry is coming out of recession, the costs for individual types of rig is varying considerably. The table below illustrates the average cost comparisons between rig types at time of writing These figures are general and should only be used as a guide. Even though jack-up costs have been traditionally cheaper than those of semis, demand for deep water jackups has pushed their day rates above most semis. 2.1 Specific cost breakdown - offshore exploration wells To...

Preparing For Rig Acceptance On A Cold Stacked

This is a much more difficult and time-consuming process. Cold stacked rigs have generally been moth-balled using inhibitive chemicals. Providing that this has been done professionally then there should be little problem bringing the rig back into operational mode. The factors influencing the ease with which the rig can be brought back into operational mode are cold stacking procedures applied inspection during cold stacking recommissioning procedures applied A copy of the cold stacking...

Organisational Structure

The means by which exploration, drilling, petroleum engineering and production interface within an oil company varies between companies. In some cases, these specialisms form distinct departments within the organisation, whereas in others, the structure evolves from a limited number of departments and therefore would involve some combination of specialisms, such as exploration and petroleum engineering or well services and production. A typical structure is indicated in Figure 2 which shows the...