Which contract requires that the contractor be responsible for the costs and activities associated with the rig and the operator responsible for other items such as drilling fluid, site preparation, and well casing?

Which contract requires that the contractor be responsible for the costs and activities associated with the rig and the operator responsible for other items such as drilling fluid, site preparation, and well casing?

• A. Turnkey contract
• B. Unit Price contract
• C. Footage or metreage Contract
• D. Daywork contract

Answer: (C)

Footage or metreage contracts price the drilling by the unit of depth drilled. The contractor is responsible for the rig and the drilling activities that occur on site, while the operator handles items like drilling fluid, site preparation, and well casing. This split keeps the contractor focused on delivering drilled footage with the rig, and it places the costs of materials and ancillary well components on the operator, often invoiced separately or provided by the operator. In contrast, a turnkey arrangement puts full responsibility on the contractor for all aspects of the well, a daywork contract centers on daily rig time with materials typically reimbursed or provided by the operator, and a unit price contract is structured around unit costs but doesn’t inherently define this specific division of responsibilities.

Footage or metreage contracts price the drilling by the unit of depth drilled. The contractor is responsible for the rig and the drilling activities that occur on site, while the operator handles items like drilling fluid, site preparation, and well casing. This split keeps the contractor focused on delivering drilled footage with the rig, and it places the costs of materials and ancillary well components on the operator, often invoiced separately or provided by the operator.

In contrast, a turnkey arrangement puts full responsibility on the contractor for all aspects of the well, a daywork contract centers on daily rig time with materials typically reimbursed or provided by the operator, and a unit price contract is structured around unit costs but doesn’t inherently define this specific division of responsibilities.