VERITAS ASSOCIATES INC.

P. O. Box 7536
The Woodlands, TX 77387-7536
281-364-1111
281-362-0099 (Fax)

veritas@mcia.com


DRILLING CONTRACTOR ESSENTIALS

We are in the currently in the process of writing a  Manual defining Drilling Contractor Essentials. This manual will  clearly define what is felt to be the essential elements for safely, economically and efficiently running a contract drilling operation. This document will be helpful for oil companies to ensure that the drilling contractors that they hire are capable of running a good operation. The document will also be helpful for drilling contractors, both established and start-up companies.

Below is an outline of the document. we would appreciate any suggestions  that you may have concerning this project. Please send your comments to us at the above e-mail address. We would like to complete this project prior to the end of 2008.


Drilling Contractor Essentials Document Outline

1)     Introduction                                                                                             

2)     Types of Rigs

a)     Land

i)        Truck mounted

ii)      Substructure

(1)   Sling Shot

(2)   Box on Box

(3)   Conventional Low and High

b)     Offshore

i)        Jack-up 

i)        Semisubmersible

ii)      Tender Assist

iii)    Drill Ship

iv)    Platform

(1)   Self Erecting

(2)   Crane Barges

v)      Inland drilling barges

(1)   Posted

(2)   Conventional

c)      Station Keeping

i)        Conventional moored

ii)      DP

d)     Economics of rig design and Marketing

i)        Economy of Core Business

ii)      Critical Mass

iii)    Economy of Scale

e)     Niche markets

i)        Surface stacks

ii)      Helicopter Land Rigs

iii)    Deep water

iv)    Inland Barges

(1)   Posted

(2)   Conventional

v)      Tender Assist

(1)   Semi Tenders

(2)   Tender/Tension Leg Platform

(3)   Conventional Self erecting

3)     Management Systems for drilling contractors

a)     Quality Assurance Policy and Systems

b)     Corporate Objectives

c)      Management Responsibilities

d)     Management Systems

e)     Planning and Contract Review

f)        Documentation and Changes – Management of change

g)     Purchasing

h)      Vendor and Supplied Products and Services

i)        Identification and Traceability

j)        Process Control

k)      Inspection and Testing

l)        Repairs and Modifications – Management of Change

m)   Inspection , Measuring and Testing Equipment

n)      Inspection and Inspecting Status

o)     Non-Conformance

p)     Corrective Action

q)     Materials Control and Materials Handling, Storage and Transportation

r)       Records

s)      Quality Audits

t)        Training and Record Keeping

u)      Statistical Techniques

v)      Safety Management, Safety Audits/Inspection and

w)    Accident/Incident Investigation

x)      Emergency Response and Management of Crises

4)     Identifying Customer (Operator’s) Goals and Objectives

a)     Planning for Achieving Customer’s

b)     Goals and Objectives

c)      Report Cards

d)     Critical Path Planning

e)     Developing Checklists

f)        Creating narrative Instructions

5)     Contracts/Sales and contract administration  

a)     Typical contract contents

b)     Sales effort defined

c)      Contract problems

d)     Administering the contract at the field and rig level                                              

6)     Market Survey                                                                            

a)     Prepare Survey

i)        Determine client base

ii)      Determine competition base

iii)    Determine performance criteria

iv)    Determine survey objectives

v)      Draft Preliminary survey

vi)    Test survey with specific client

vii)  Draft final survey

b)     Perform survey

c)      Analyze results

d)     Create report

e)     Discuss and analyze results

f)        Develop marketing plans

g)     Develop and approve image improvement plan

h)      Make presentation to clients

7)     Drilling Efficiency                                                                                   

a)     Continuous Quality Improvement

b)     Critical Path Planning

c)      Checklists

d)     Narrative Instructions

8)     Remote Operations Start-up

a)     Planning

b)     Checklist

c)      Identifying Special Circumstances

9)     Surveys and Inspections                                                           

a)     Governmental Agencies

b)     Classification Societies

c)      Inspection Requirements

d)     Methods of Inspection

10) Accounting and Cost Control

a)     Functions of accounting                                                      

b)     Labor

c)      Repairs and Maintenance

d)     Drydock and Repair Yards

e)     Freight

f)        Catering

g)     Insurance

h)      Transportation

i)        Mob-Demob Expenses

j)        Shorebase

k)      Rentals and Leases\

l)        Depreciation

11) Cleanliness and Housekeeping (importance)                                                

12) Management Drift                                                                      

13) Disasters                                                                        

a)     Storms

b)     Mechanical/Structural Failures

c)      Well Control

d)     Insurrections and Riots

e)     Fire

f)        Accident Investigation

14) Ethical and Legal Issues

a)     Bribes and kickbacks

b)     Foreign corrupt practices act

c)      Sexual harassment

d)     Hostile workplace

15) Emergency Response

a)     Managing a crisis

b)     Relative response (Proactive)

c)      Media response

d)     Support room

e)     Control of the situation