Opportunities in Gas and Oil Drilling: Saudi Arabia.
In Saudi Arabia, the foreign companies are not allowed to bid
without joint venturing with a local partner or having a local agent.
Therefore, the commercial registration of the drilling company is a must
before starting its operation in Saudi Arabia. This procedure normally
takes six months' time. Aramco, being the only oil company in Saudi
Arabia, has the following procedure for bidding: 1. Pre-qualification
Process: The drilling contractor has to approach Aramco for
pre-qualification. The drilling contractor should have a good experience
in drilling/workover and should have experienced personnel to run the
operations. They must also have rigs with the right technical
specification. 2. Tendering: The tender is always released to the
qualified list of contractors. 3. Awarding The Tender: The tender is
usually awarded to the contractor who qualifies on the following:
Technical acceptance, manpower competence, and commercial
competitiveness. 4. The contractor whose rigs are available in Saudi
Arabia will have an advantage over other contractors since mobilisation
cost will not be absorbed by Aramco and hence, the bid shall be more
competitive than contractors with rigs available outside Saudi Arabia.
5. The duration of the primary contract is normally 3 years with one
year extension option. The duration of the alternative contract is 2
years with 2 years extension option. 6. The downtime (like wait on
cement, fishing) is usually charged at half the daily rate. However, if
stoppage was due to the fault of the contractor, then there will be no
payment. 7. There is no preference to any contractor over the other
except for rig specs, experience, availability of personnel and lowest
commercial bid. However, if the contractor succeeded in recruiting Saudi
manpower, then there are special incentives. 8. The qualified drilling
contractors with Aramco are the following:
- Arabian Drilling Company, ADC, which is a joint venture between
the French Sedco Forex and Petromime.
- Pool Arabia, P or PA which is a JV between the American Pool
Internatinal and Al Jaffali.
- Nadrico, NAD which is a JV between the American Nabors
(previously Loffland) and Razayat (Mohammed Ali Reza).
- DST, which is a JV between the German Deutag and Al Olayan.
- Egyptian Drilling Co., DPS, which is controlled by
Denmark's Maersk through a representative in Saudi Arabia.
- Santa Fe, SF, is a Kuwaiti company which is operating through a
representative in Saudi Arabia.
- Noble which is a JV company with Al Rasheed but is idle in