OMV has been drilling for oil and gas in a roughly 5000-km2-area northeast of Vienna for more than fifty years. Since 1999, previously applied conventional type service contracts were gradually changed to performance-based incentive type contracts, which increased drilling performance up to 50% over a three-year period. The impact of generating "ownership" within the service company’s and contractor’s staff is reflected by both the increased quality of the wells drilled and the enhanced safety record of the rig(s). The paper describes the incentive scenarios developed for a mature operating are, the pitfalls and obstacles that had to be overcome in implementing new contractual concepts in a traditional operating environment and the increases in operating efficiency gained from the new culture.

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