Well Costing

Course review:

Among all the activities in field development, drilling and well development could rank as one of
the most expensive and riskiest ventures. The cost of drilling a well is constantly being reviewed
and contested in the industry today due to the lack of easier on-shore or shallow water
opportunities. Combined with the high costs in the exploration process, fluctuating price of oil and
increased demand for drilling contractors and technology, costs have spiralled upwards in the past
few years.

With deepwater drilling rig rates in 2011 of around $420,000/day, and similar additional spread
costs, a deepwater well of duration of 100 days can cost around US$100 million. With high
performance jack-up rig rates in 2011 of around $150,000, and similar service costs, a high
pressure, high temperature well of duration 100 days can cost about US$30 million.
With such high cost considerations at play during the well planning and drilling phases, drilling
engineers and accountants must generate accurate and efficient cost estimates for their operations
throughout the life of a well. This 2 day targeted training course will explore in detail the various
issues and challenges in developing clear and concise planning and budget reports for well
development and drilling.