By: John Hoopingarner

John Hoopingarner — Thu, 27 Oct 2016 13:08:06 +0000

This IADC member applauds Mr. Soares cost reduction strategy of engaging key service providers sooner rather than later in the well program early planning stages. This does assume, of course, that in these “lean times” the service providers have the right staff available to add the value, experiences, best practices, and share lessons learned that will benefit the planning.
If BP is willing to pay for this expertise there could be some real benefits, i.e. the service provider will make a much greater effort to put their best people on it and in so doing BP should have less or no problem using their ideas even if this service provider is not chosen to provide the services.
In the downstream sector, it is common that one engineering firm wins the Front End Engineering Design (FEED) competition and another firm wins the work through a competitive bid process.
If BP is unwilling to pay, could it be problematic for the service providers to work for free without a quid pro quo which BP would likely not be able to provide?
Should BP and other operators adopt the practices that their downstream counterparts use to achieve the very best well designs?
Might be worth looking into.

Comments on: BP looks to expertise of suppliers, contractors to drive down costs

By: John Hoopingarner