Global Maritime

Global Presence with Local Commitment

Case Studies

Optimal Rig Selection

Reasonable and effective drilling of wells will be necessary to maintain a high and reliable production level on the Norwegian Continental Shelf.  Recent years, offshore drilling contractors have invested large sums in constructing new offshore rigs. Now, in a market characterized by reduced activity and weaker oil prices, the supply of rigs is ahead of the demand, leading to a large number of available rigs.

 

This combined with an increased industry focus on cost reduction in general and in particular in relation to drilling and well operation, facilitate an opportunity to select more fit for purpose rigs.

 

Direct costs associated with hiring a MODU constitute a large portion of the total cost of a drilling campaign. The direct MODU cost can roughly be summarized as the day rate (including e.g. fuel consumption) multiplied with the duration. 

 

MODU characteristics that affect day rate and duration include:

 

-Size

-Station keeping (Anchor, ATA or DP)

 

Global Maritime's approach is to optimize the direct MODU cost based on the mentioned characteristics, and hence provide decision support to the Operator.  As such, the purpose of the analysis is to estimate cost related to the hire and station keeping of MODU.

 

For this case, Global Maritime evaluated three different rig sizes: Small, medium and large.

 

The total rig specific cost for this case study showed that choosing a fit for purpose rig has a large impact on the well cost, as there was a cost difference of approximately 170 MNOK between two of the rigs in the evaluation.

 

Below you can see the methodology that Global Maritime used to determine drilling operability: