Drilling Contract Lawyer

Drilling operations are absolutely essential to the oil & gas business model and as such the contractual arrangements that are undertaken to advance petroleum operations are of fundamental significance [from horizontal drilling to directional drilling (rotary steerable, MWD, LWD), engineering, casing, equipment, drilling hazard mitigation]

Distinctions between drilling contracts often begin with the situs of the petroleum drilling, such that we have onshore drilling contracts, offshore drilling contracts, arctic drilling contracts and international drilling contracts. This is further distinguished by the operational arrangements related to the particular drill:

(i) Daywork Contracts which have the drilling contractor paid at a stipulated price rate for work undertaken over a 24 hour period, as directed by the operator, with the contractor only assuming limited risks (with risk of delay and most liabilities generally falling unto the contractor).

(ii) Footage Contracts which pay the drilling contractor a stipulate price per foot of hole drilled from the surface through the total depth or based on such other or further criteria.

(iii) Turnkey Contracts which provide for the drilling contractor to be paid a stipulated for drilling a well to a specified depth or to a targeted formation.

Fiscal economics is the principal driver of the contractual specifications, together with such other aspects as the drilling contractor's capabilities and experience; operational challenges; timing and availability; mobilization; environmental and safety demands; equipment specifications; among a range of other commercial and operational demands, together with the legal dimensions that are imposed in the realm of oil and gas drilling arrangements.

For more information on the legal services of Neufeld Legal P.C. in relation to drilling operations and the legal dimensions associated with petroleum drilling, or to schedule an appointment, contact our lead lawyer Christopher Neufeld at Christopher@OilGasLawyer.ca or 403-400-4092.

Petroleum industry specific agreements: Oilfield Services Contract, Drilling Contract, Well Services Contract, Field Development / Management Contract, Evaluation / Monitoring Contract, Pipeline Contract (casing and tubular services), Pressure Pumping Contract, Transportation and Logistics Contract, Engineering Contract, Safety Arrangements, Environmental Protection / Remediation, Freehold Petroleum & Natural Gas Lease and Grant, Royalty Purchase Agreement, etc.