Casing is usually the most critical item with respect to timing. Most countries impose very strict purchasing procedures (world bank, local agents etc.) that must be followed to insure potential cost recovery

1 Equipment

Casing is usually the most critical item with respect to timing. Most countries impose very strict purchasing procedures (world bank, local agents etc.) that must be followed to insure potential cost recovery. Process should start 12 months before casing is required (3 months to get through the process of selecting a supplier and issuing a purchase order and up to 9 months to manufacture and deliver the casing).

Note also that for cost recovery, it may also be required to have a work or drilling programme approved by the government agencies before any equipment can be ordered. This process may take a few months to complete.

2 Drilling Services (mud, cement, etc.)

The time to tender for and award a major contract should not be underestimated. The process should start at least 8 months before spud.

Preparation ITT                                                                      2 months

Bid preparation (contractor)                                                   2 months

Evaluation and clarifications                                                  1 month

Approval partners and NOC                                                   1 month

Mobilisation                                                                            2 months

If possible, the contractors should make an exploration visit to assess their requirements in anticipation of the formal invitation.

3 Offshore operations

For an offshore operation the tendering process for major contracts should commence at least ten months prior to spud date. These include drilling, supply vessels and air support contracts.

The Country Manager should arrive 12 months prior to the required spud date of an offshore well, allowing a month for settling in and orientation. The remaining office based staff should arrive soon afterwards so that each one can deal with the sections of the tender document dealing with his own area of interest.

4 Onshore operations

For an onshore operation the critical factor is the civil construction work. Process should start at least five months before start of construction.

Survey and design of location and access road          1-2 months

Prepare tender document                                            1 month

Tender and award                                                       1 month

Mobilisation                                                                1 month

Construction location and access road                       2-4 months

Before the survey can be done it is essential to define how the rig will be transported, and the general location of the access road(s).

If extensive and difficult civil work is required, the Country Manager, Supply Manager and Civil Engineer should be in the country 10-12 months prior to the required spud date.

The Finance Manager should also be involved in the detailed setting up of the venture from a very early stage.