A comprehensive drilling unit tender evaluation model based on value drivers for a mature project

Abstract

The selection of a drilling unit in a tender process has a significant impact on the total costs for a field development project. This impact affects both commercial, technical and non-technical aspects that goes beyond the daily operating rate, which in some cases is the main element considered in the evaluation process. Using the principles of economically most advantageous tender concept a comprehensive evaluation model has been built to cover the many different elements and dimensions that form part of the overall drilling unit selection based on scope, objectives, and value drivers for the project. When applying the model on a fictive field development and tender process the model suggests differences in costs of close to 20% less when compared with a less sophisticated conventional lowest tender methodology.