The paper describes the approach taken by an independent provider of well construction and well management services, and how this has developed over the last nine years. The essential elements for a successful project outcome for both operator and the various contractors involved are discussed.
The importance of getting early agreement on and definition of the scope of work will be emphasized with examples given of the variety of workscopes currently existing under the much abused "Integrated Services" banner and the flexibility of approach required to be a competitive supplier of such varied workscopes.
The process used in determining the appropriate bid strategy will be explored, including selection of alliance or sub contractor partners, objective setting and resource allocation. The issue of bid preparation costs will be discussed with suggestions on how this can be reduced and/or more equitably shared.
Issues relating to the risk aspect of managing Integrated Services, including underwriting joint and several liabilities arising and the risk relationship between the Operator, Integrated Service provider and subcontractor.
The organization of an Integrated team which combines the skills requirement with the available resources from all participants requires careful consideration at the earliest stage. Information transfer in the form of verbal, written and electronic communication must be cost effectively provided without in built barriers or duplication created out of traditional thinking.
The future development of the business relationship between operators and contractors will be discussed from an integrated services perspective. It is concluded that this relationship will develop positively if there is a common understanding of what constitutes a fair return on investment for all parties and a reasonable sharing of the gains or "profits". Bidding Strategies in the North Sea context will be discussed with suggestions as to how Operators could benefit from earlier involvement of contractors e.g. by discussing the possibility of factoring in overall cost reduction potential for new technology equipment which may have a higher unit cost.
The authors will draw from experience of providing integrated services in the North Sea over the last 9 years to discuss and demonstrate the foregoing issues.