Innovation in the Supply and Procurement of Rig Services

Petter Osmundsen

No 4961, CESifo Working Paper Series from CESifo

Abstract: Substantial elements of innovation have been observable during recent years in rig supply, in particular regarding contracts and organisation. This trend has been driven by the fact that rising costs over many years have put profitability under pressure. On the basis of theory and available empirical insights, the paper outlines the conditions where specific organisational and contractual solutions are best suited. Optimum rig procurement will depend in part on whether the oil companies have time-critical drilling targets, the ability and willingness of the parties to bear risk and the purchaser’s competence and capacity to manage and follow up procurement.

Keywords: rig services; contracts; organization; innovation (search for similar items in EconPapers)
JEL-codes: G34 L60 M10 (search for similar items in EconPapers)
Date: 2014
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Working Paper: Innovation in the supply and procurement of rig services (2014)
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