Abstract

Drilling has been and always will be a risky business. Every well is unique and capable of encountering problems far beyond anyone's original expectations. Whether drilling a rank wildcat or the twentieth development well in a field, the risks of our business do not go away. In fact, the risks seem to multiply over time, as wells become more complex due to advances in technology. With this increased operational risk comes additional financial exposure as the cost of all operations has continued to escalate over the recent past.

Performance against predetermined financial goals of an operation is the most universally accepted way to evaluate the success or failure of a project. Turnkey is the only drilling alternative which can cap financial exposure and in the process offer operators the requisite flexibility to conduct their business and manage their resources in a more efficient manner. It is this capability to fix costs, and shift drilling risk that is inking turnkey an increasingly more attractive alternative to operating companies of every size. Turnkey is no longer just a drilling decision; but has become, more importantly, a business decision.

P. 593

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