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  • An approach to footage contract.
  • フーテージコントラクト エ ノ トリクミ

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Japan Drilling Co., Ltd (JDC) has been carrying out drilling operations under a footage contract in Persian Gulf since December 1999 utilizing a jack-up rig Hakuryu-8. The footage contract is one of the incentive contracts, which is named from a rate is defined by price per foot. The footage contract is a very common contracting style in US land rig operations, while it is not so common in offshore operations, especially in Asia. This report intends to serve as an induction to the footage contract, JDC's approach to the contract, and a result of the first year operations performed by JDC to verify that this type of contact is beneficial for both operators and contractors.<br>The footage contract shifts risks of hole trouble and equipment trouble onto a contractor in footage section; however, the contractor would benefit more from effective and faster operations with less non-productive time. An operator would benefit from the best possible performance by the contractor, hedging the risk of hole trouble to the contractor and completing a well with shorter time.<br>As a result of five wells drilled in year 2000 by JDC, the operator saved 39 days of operating days and 17 percent of operating costs. And those performances were highly appreciated by the operator.

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