Labor, material needs estimated for US construction of jack ups

Document Type

Article

Publication Date

8-6-2012

Abstract

The article follows a top-down approach to estimate labor and material requirements of US rig construction. The cost to construct a rig is decomposed into five elements-drilling equipment, rig kit, labor, material, and profit. Labor is required to fit, weld, and assemble steel components, attach drilling equipment, and certify, inspect, and manage construction. Major work requirements during rig-building include welding of steel components, assembly of piping systems, installation of equipment, outfitting, material handling, engineering, and management. Drilling equipment includes the derrick, top drive, blowout preventer, mud and pipe handling systems, and other systems. It is frequently purchased as a package from an integrated supplier. The rig kit includes the jacking systems, design license, and other components sold by the design firm. Labor costs directly enter local economies, but material costs are distributed across greater geographic regions and often represent a greater percentage of the total cost in rig construction.

Publication Source (Journal or Book title)

Oil and Gas Journal

First Page

50

Last Page

62

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