Contracts for Drilling Service

ENORCA helps geothermal concession owners to start their exploration work.

You may require drilling services based on meter-rate, or the traditional day-rate.  But integrated contracts are becoming more and more a norm in the procedure of geothermal drilling.

Geothermal Drilling Projects usually involve multiple contractors and suppliers. Various portions of the drilling job are tendered out to different contractors or suppliers. This process requires extensive overhead for the developer/employer and increases the level of complication.

The process of procuring drilling equipment for geothermal drilling can be different, and is based both the geological location (market), and the type of development company involved.  The approach is largely depending on the market situation having in mind the availability of drilling equipment in the particular market, and if the equipment is in close proximity to the project area. 

If the company is a public entity, then a formal and open tendering procedure is usually required.  If the company is a private company tendering is not required by law, but is very often the preferred approach in order to obtain the best possible prices for the drilling campaign. Further the procurement approach is characterized by the level of knowledge and expertise of drilling procurement within the tendering entity.  While the oil & gas industry have big procurement departments specialized in drilling exploration, having experienced engineers, then very often the “geothermal procurement units” do not have their own infrastructure and expertise for handling all procurement preparation. There are though few exceptions in this respect.  These are bigger utility companies who already have electricity generation using geothermal resources.

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