Good cost management of the project is a precondition for successful business. A significant part of the unit costs on oil and gas companies is related to service contracts. On one side such contracts need to be set to achieve long-term and sustainable savings, but on the other side such contacts may need to be adjusted to achieve short-term savings in changing economic environments.

In this respect the following ways are often considered :

  • Rate renegotiation
  • Renegotiation of existing contacts
  • Negotiation of new contracts
  • Focus on high impact methods
  • Tight progress tracking as part of the cost controlling process

Cautious preparation of the technical terms and conditions of the service contracts result in significant cost savings. Motivating incentive schemes and fair clauses in the contracts are further ways to achieve an effective work execution, still under consideration of the most practical HSSE aspects. With the right expertise this can be achieved with relatively small efforts at the contracting and monitoring phases.
GPCI can advise on advantageous terms and conditions with relation to the technical preparation and execution of technical service, or can even help in supporting an entire tender process.

Our experience covers :

  • Well logging and processing contracts
  • Seismic acquisition and processing contracts
  • Core evaluation contracts
  • Marine site survey and geohazard survey contracts

This expertise is transferable also to other types of service contracts in the oil and gas industry.