Drilling Agreement

Some operators are very conservative and willing to pay more for less problems and downtime of the drilling platform, more safety and high-end rig capabilities. Of course, conservative drilling companies are usually in the best position to cooperate with conservative operators. On the other hand, some operators are more free, cutting “closer to the bone” so to speak and working for example on front-end costs, and they work best with drilling companies that work in the same way. Safety when allocating risk and liability is essential to negotiating and documenting the terms of a drilling contract. Each party needs a clear understanding of the risk it is taking to assess the practicability of the contract from an economic point of view. The operator will seek offers from a number of drilling companies that are able to carry out the work. . . .