This paper concerns a cooperative effort between a major producing company and a major service company to establish a business relationship which emphasizes workmanship and productivity instead of traditional unit pricing. The general concepts of and reasons for productivity-based contracts are explored. The viability of these concepts for six common maintenance services are discussed as well as specific results from more than two years of operating experience relating to routine production maintenance (well servicing).

Keywords:
spe iadc drilling conference, spe drilling conference, louisiana, contractor, investment, supplier, well servicing, operator, spe 20103, new orleans
Subjects:
Well Intervention
Copyright 1990, Society of Petroleum Engineers
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