DRILLING CONTRACTdrilling contract. Oil & gas. A well-drilling agreement between a drilling contractor, who owns drilling rigs and associated equipment, and the owner or lessor of the mineral rights. ? The contract spells out the rights and duties of the parties. In general, the more control the interest-owner retains over the contractor, the more liability the owner is exposed to for damages the drilling causes.
daywork drilling contract. Oil & gas. A contract under which the lease operator hires a drilling rig and oilfield workers, pays an amount based on the time spent in drilling operations, and retains the right to direct drilling operations. ? This type of contract gives the lease operator broad control over the drilling contractor, so courts in turn impose broad liability on the lease operator for any damages that result from the drilling. Cf. footage drilling contract; turnkey drilling contract.
footage drilling contract. Oil & gas. A drilling contract under which the drilling contractor is paid to drill to a specified formation or depth, is paid a set amount per foot drilled, and is given broad control over how to do the work. ? The risk of unexpected delays, as well as most liabilities, is on the contractor rather than the lease operator under this type of contract. Cf. daywork drilling contract; turnkey drilling contract.
turnkey drilling contract. Oil & gas. A drilling contract under which the drilling contractor promises to perform specified functions for an agreed price. ? The lease operator has little or no discretion to control the drilling contractor, and so assumes little or no liability for damages that the drilling may cause. Cf. daywork drilling contract; footage drilling contract.
What is the Chinese interpretation of DRILLING CONTRACT?