Low-cost UK north sea exploration well

A Central North Sea exploration well was designed, planned, and drilled within a six-month period for the UK subsidiary of a US independent oil company.

The subsidiary had no previous operational experience in the UKCS and no UK drilling personnel. As part of the project management the client was provided with a management system to expedite drilling operations in the UKCS. By taking advantage of the prevailing low level of drilling activity ADM negotiated favourable rig and service contracts. Further savings were made in areas such as support vessel chartering where the anchor handling and supply boat spot market was used to provide vessel support.

The result was a 6,000ft (dry) hole drilled for £1.75MM, approximately £350,000 below the “integrated” package quoted by a drilling contractor.