RE: RE: RE: RE: RE: RE: I will say it againAccording to sources the total cost of drilling a well on land is double the amount of the day rate.
Other costs include:
Payments for the contractors, welders, engineers, supervisors, mud loggers, geologists, scientists.
Personnel for drilling, logging, cementing, casing and other logistics.
Clearing all the dues with the landowner (territorial payments if offshore), payment of taxes, fee for attorney, permit to drill the well.
Costs for maintenance: There will be three shifts with personnel employed 24 hours a day, so amenities for the crew like motels, restaurants, transport, water and food.
"According to Arizona Geological Survey, Oil drilling in Arizona costs between $400,000 to $1,000,000, depending on the depth of the hole and its location. A rig capable of drilling most exploratory holes typically costs $8,000-15,000 per day."
Something seems wrong with the numbers in the article regarding the cost SOCO estimated.
Lets say the day rate in Congo is 30000$,then the total cost/day would be 60000$.
SOCO was in possesion of the rig for approximately 200 days.According to the calculation above the total
cost should be 12m$.
Drlling the first well could have been more expensive due to mobilisaton costs but I dont see how they came
up to a calculation 4-5 times more expensive than the cost for the most expensive land rigs.
Could be that the day rate for Congo is somewhat more expensive than in other countries due to its regarded as
unstable due to a recent war but it shouldnt come close to 50-60m$ imo.