During a period of rig scarcity, three small, independent operators joined together to present an offshore drilling schedule of sufficient duration to interest a drilling contractor and greatly reduce mobilization costs. Each operator had found that for the market conditions at the time, remote, one-or two-well offshore drilling programs were prohibitively expensive. Also, the short duration of the operators' programs rendered them unattractive to the one drilling contractor capable of doing the work and in the best geographic position to significantly affect program costs. Combining the three drilling programs satisfied the contractor's desire to secure a long-term work contract and promised significant savings in expenditures for the operators. Each operator's drilling program was examined and priorities compared to determine and produce as many common elements in permitting, well design and evaluation needs as possible. The intent was to not only streamline and thereby accelerate certain processes but to maximize purchasing power with suppliers and service companies as well. Reductions in expenditures were anticipated to be 20 percent to 50 percent of total well cost, depending upon the operator. Risk reductions during periods of commonality in the combined program, such as mobilization and demobilization, were expected to be 50 percent and greater. Difficulties arose from conflicts between the common good of the group and each operator's natural self-interest. Because logistical and regulatory pressures caused the combined program to commence before all necessary contractual agreements were consummated, these conflicts were exacerbated.

You can access this article if you purchase or spend a download.