Dubai Petroleum Company (DPC) operates a number of offshore fields in the emirate of Dubai in the United Arab Emirates. The fields have been producing for over 30 years and the structures now require some of the most innovative and complex well designs that are currently being drilled in the industry today. In order to successfully achieve such designs it has been necessary to introduce new processes and technologies. DPC recognized that traditional contracting relationships were not the appropriate environment to encourage the use of such technologies to improve the drilling performance.

In 2002 a new contracting relationship was established between Dubai Petroleum Company and Halliburton for the provision of directional drilling, MWD, LWD, drill bits and Surface Data Logging (SDL) services. Whereas previously these services were provided by four different suppliers, it was recognized that they are all related in terms of the provision of data and performance during the drilling process. It was therefore determined that synergies would be realized by having these services provided from the same source. More importantly a fair and equitable remuneration scheme was established whereby overall compensation was based on agreed key drilling performance factors, in addition to meeting agreed well objectives. These are designed in such a way to allow the service supplier to realize the benefits of introducing new technologies which in turn would actively encourage their introduction.

To date the new contracting relationship has been in place for over a year and it is now possible to compare drilling performances under the new contract with those under the previous contracts. In addition during this period a number of new technologies have been utilized in the drilling of these wells.

This paper will examine the traditional contracting relationship between operator and service supplier and describe the new contracting relationship established in 2002. Previous and current drilling performances will be compared and the new technologies introduced described along with the benefits they bought to the overall drilling program.

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