workover rig cost per day for sale

Well Service | Workover Rigs - 844/80 Double drum draw works. looks to be recently rebuilt. Has new Lebus Grooving on Tubing Drum. Comes w/ 250 HP 2 speed jackshaft/RA BOX. More Info

Well Service | Workover Rigs - CARDWELL KB200B Freestanding Oilfield Workover Rig / Service Rig / Pulling Unit, Service Rigs, Used Cardwell KB200B Freestanding Service Rig, 5 Axle Carrier, Detroit 8V71... More Info

Well Service | Workover Rigs - WELL SERVICE RIG - COOPER 350 Well Service Unit p/b DETROIT 8V-92 Diesel Eng, ALLISON 750 Trans, 42X12-38x8 DRAWWORKS w/dual disc assist, 97’ 200,000# Telescoping M... More Info

Well Service | Workover Rigs - CROWN 350 SERIES -- SERVICE KING 104" 205,000# DERRICK, CAT3406, ALLISON 5860,38X10 DOUBLE DRUM DRAWWORKS, CROWN SHEAVES REBUILT 2013 MAIN26”X4,SANDLINE 22”, NE... More Info

Well Service | Workover Rigs - 2008 Crown/Cabot 1058 Service unit mounted on 4 axle carrier w/Detroit 60 Power. New 5860 Drop Transmission. 72" Double rod/single tubing Derrickmast 125000# Rig is in Ex... More Info

Well Service | Workover Rigs - WELL SERVICE RIG - FRANKS 1287-160-DTD-HT D/D Well Service Unit p/b DETROIT 8V-71N Diesel Eng, ALLISON CBT-4460-1 Trans. SERVICE KING 96" 180,000# Hydraulically Raised & ... More Info

Well Service | Workover Rigs - FRANKS 300 D/D 1287 w/hydromatic brake, Well Service Unit p/b DETROIT 8V-71 Diesel Eng, ALLISON 750 Trans, (Reman Dec 2011) FRANKS 96’H 150,000# Tri-Scope Telescopin... More Info

Well Service | Workover Rigs - FRANKS 658 D/D Well Service Unit p/b CAT 3406 Diesel Eng, ALLISON HT-750 Trans, FRANKS 96’H 180,000# 4-Leg Telescoping Mast, Hydraulically Raised & Scoped w/4-Sheave... More Info

Well Service | Workover Rigs - FRANKS 658 D/D Well Service Unit p/b Series 60 Detroit Diesel Eng, ALLISON 5860 Trans, 102’H 225,000# (on 4 line) Telescoping Mast, Hydraulically Raised & Scoped, Db... More Info

Well Service | Workover Rigs - IDECO H35 96̢۪ 210,000 MAST, DETROIT 60 SERIES ENGINE, ALLISON 5860 TRANSMISSION, REFURB 2005, IDECO DERRICK REPLACED WITH NATIONAL DERRICK, TUBING DRUM CON... More Info

Well Service | Workover Rigs - IDECO RAMBLER H-35 Oilfield Workover Rig / Service Rig / Pulling Unit, Service Rigs, Used Ideco Rambler H-35 workover rig / service rig / pulling unit, 4 axle carrier, De... More Info

Well Service | Workover Rigs - 2015 INTERNATIONAL PAYSTAR 5900 Flushby Unit. C/w 2003, Refurbished in 2015, Western Fab Ltd. flushby unit, s/n 03-09-1008, 50 Ft. Mast height, 50,000 lb. pull rating, fr... More Info

Well Service | Workover Rigs - 2005 KENWORTH T800 Flusby Unit. C/w Lash Ent. flushby unit, 47 ft mast, slant compatible, 3x5 Gardner Denver triplex pump, 5000 psi, 2005 Advance 8m3 tank, TC 406 code, P... More Info

Well Service | Workover Rigs - 2003 KENWORTH T800 Flushby Unit. c/w Online flushby unit, 47 ft. mast, slant compatible, Pullmaster HL25 wotking winch, Pullmaster PL5 catline winch, 2002 wabash two comp... More Info

Well Service | Workover Rigs - 2005 KENWORTH T800B Flushby Unit. c/w Online flushby unit model 50-50, s/n 24641, 40 ft. mast,Salnt compatable, Pull master HL25 and PL5 winch, Gardner Denver 3x5 triplex... More Info

The commodity price downturn is prompting price reductions among well service contractors in the greater Rockies outside the Williston Basin. In mid-January 2015, service providers report rates down about 10% quarter-to-quarter, similar to reports elsewhere in the oil patch as operators push the service sector for cost reduction. Meanwhile, larger service providers worry about further rate cutting from local, privately-held contractors. Rate reductions have not yet translated to reduction in wages for hands, although expectations are that pricing is going to drop further on the basis of lower commodity prices.

Among Survey Participants:Rig Demand Down QTQ [See Question 1 on Statistical Review]. Seven of the eight respondents said that demand had dropped in 1Q15 vs 4Q14 and all but one blamed lower oil prices for the slowing. One respondent that had seen a slowdown in demand said it was because they had finished all of their completion work. The respondent who had not seen an effect on demand said that their work was steady, but they were hearing of others slowing down.Mid-Tier Well Service Manager: “We are seeing demand slow for rigs and prices are being reduced. Operators are asking for 20% reductions, some are asking for 30% and they may get it. The greater reductions will be from people who are local because they don"t have the overhead expense. The service won’t be as good. On average, operators may get 15% of that 30% they are seeking in reductions.”

Number of Rigs Sufficient [See Question 2 on Statistical Review]. Six of the eight respondents said that the workover rig inventory is excessive for the current demand, while two said that it is sufficient but tipping toward excessive.Mid-Tier Operator: “Operators here are basically focusing on the higher production wells and going to ignore the lower ones. We have heard companies are laying down workover rigs. One company is going from 17 to 13.”

Well Service Work Weighted Toward Standard Workovers and Routine Maintenance [See Question 3 on Statistical Review]. Among all respondents, standard workover work accounts for 34% on average, routine maintenance accounts for 34%, plug and abandonment (P&A) accounts for 16% and completion work accounts for 16%.Mid-Tier Well Service Manager: “Our work slowed because we finished our completion work so the client gave us some production work to keep us steady till we finish this fracking job.”

Hourly Rates Consistent Among HP Series [See Question 5 on Statistical Review]. Most workover rig horsepower falls within the range of the 500 series. The 500 HP hourly rates average $310 to $400/hour depending on what ancillary equipment is contracted. See Table II for Average Hourly Rates.

Hart Energy researchers completed interviews with nine industry participants in the workover/well service segment in areas of the Rocky Mountains outside of the Bakken Shale play. Participants included one oil and gas operator and seven managers with well service companies. Interviews were conducted during January 2015.

3. Looking at your slate of well service work - on a percentage basis - how much of it is workover vs. routine maintenance vs. plug & abandonment (P&A) vs. completion work?

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WILSON WELL SERVICE RIG  (Ref#3000Ta)  103’ x 248,000# derrick, Out of service since 2017, lot of rust, will start and run and/or drive down the road POR

Refurbished, 700 hp, Double drum 2042 drawwroks with Parmac 202 brake assist, (2) Caterpillar 3406 Engines, (2) rebuilt Allison 750 6 speed auto transmission with reverse. 112" x 300,000 # hook load capacity on 8 lines, clear height 97 feet, leg spread  7" 6-1/2", racking board, oil bath chain case, elevated rotary drive, all raising lines and guidelines. The Draw-works, hydro-mantic break, and crown assembly have been rebuilt. Heavy duty Draw works drive propeller shaft through right angle gear box, rotary drive propeller shaft, heavy duty reverse gear box and oil bath roller chain, and a self-locking handling winch.  Mounted on triple front axle mechanical 6 axle carrier with 134,000# capacity designed to meet highway safety standards with necessary toughness for off road operations.  Price:  $265,000

Derrick fell onto rig when being raised, derrick would need to be replaced or repaired.  Built 1981, double drum, 42 x 12, 42 x 8, swab drum removed from jack shaft, 5-axle back in carrier, 250,000# derrick with double racking board and triple rod basket, Cat 3408, CLT 5860 transmission, Cooper right angle box, 4 hydraulic leveling jacks, air rod transfer in derrick, hydraulic winch, Kerr 6 cyd 10000 psi Mustang pump powered from jack shaft, Kerr 3-valve release 10,000 psi, tong carrier f/Foster, steel work platform, Parmac 22 SR hydromatic brake.  Extra rebuilt 3408 Cat engine.  Price as is:  $112,500

Double drum, 15,000’ of new 9/16” line, near new 4-line blocks, mounted on 5 axle Crane Carrier, 104’ x 250,000# mast, 750 Allison transmission, Detroit 60 series, currently operating  Price:  $130,000

Manufactured 1981, mounted on 5 axle carrier, double triple service rig, 96’ x 250,000# derrick, Detroit Series 60 12.7 diesel engine, Allison transmission, 9/16” sandline, 1” drill line,  hydraulic jacks, hydraulic catwalk, travelling block, tubing bard, rod basket and all necessary lines.  Tooling not included.  Price:  $115,000

Manufactured 1983, double drum, 96’ x 180,000# derrick, mounted on 5 axle carrier with 92T engine, Allison transmission  Price rig only:  $300,000  Price with tooling:$340,000

WILSON 42 WELL SERVICE RIG(Ref#7562Ta)  Manufactured 1975, 180,000# Pemco double/triple derrick, mounted on Wilson carrier with Detroit 8V71 engine, 4 hydraulic leveling jacks, ready to work  Price rig only:  $74,500  Price with tooling:  $94,500

Manufactured 1983, 70" x 120,000# non telescoping stiff mast, double drum 26 x 8, Detroit 6V71 diesel engine, 740 Allison transmission with Spicer power divider, mounted on 4 axle carrier.  Rig runs and truck drives, stacked for several years, good condition  Price:  $93,500 USD

110’ x 250,000# Cooper derrick, Detroit 60 Series engine, 6061 Allison transmission, 6 axle Pettibone carrier, 3 front and 3 rear axles, drop box converted to air control, tubing drum, sand drum, 24” Wichita clutches  Price:  $315,000

FRANKS 500 WORKOVER RIG(Ref#7615Tc)  Built 1980, refurbished 2018, 102’ derrick, 150 ton blocks, 15,000’ sandline, new engine and transmission, ready to work  Price:  $430,000

FRANKS 400 WORKOVER RIG(Ref#7615Ta)  Built 1979, refurbished 2017, 102’ x 215,000# derrick, 100 ton blocks, 15,000’ sandline, 4 lines  Price:  $390,000

FRANKS 300 SERVICE RIG(Ref#1169Ta)  4-legged derrick, Series 60 Detroit engine, 6850 Allison transmission, blocks, Foster tongs, mounted on 4 axle carrier, working condition  Price:  $37,500

WILSON MOGUEL 42 WELL SERVICE RIG(Ref#3177Tb)  Two available, 96" x 280,000# mast, Detroit Series 60 engine, 5860 Allison transmission, mounted on 5 axle Wilson carrier, handling tools  Price:  $315,000

WILSON SUPER 38(Ref#3307R)  Double drum drawworks, friction clutches, Foster makeup and breakout catheads, Cummins 250 disel engine, Spicer 4 speed transmission, 70’ cantilever mast, 4-sheave crown block, racking board, mounted on 8’W x 22’L tandem axle trailer with folding walkways, mast base, 4 manual jacks, Budd wheels, National Ideal 75 ton 3-sheave block with hook, Price:  $45,000

Workover rig with 83’ telescoping derrick, 10’ crown extension, 200,000# lift capacity, 100,000# snubbing capacity.  Catwalk with 42’ reach, forward and revere motion, hydraulic pipe slide, six portable pipe racks, powered by workover rig.  5000 ft/lb hydraulic rotary, 15k psi working pressure capability kelly hose, 300 ton mast with 5 x 5 heavy wall box tubing and 2 x 2 heavy wall cross sections, (2) mast raising cylinders, 9-1/8 x 25’ telescoping cylinders/crown sheaves with cable guides, (2) winch sheaves/snubbing sheaves, SRS fall protection, retractable flow tube design, non-swivel boom pole on curb side winch, (2) mast supports, 1” lifting cables, mounted on 5 axle Crane Carrier (3rd axle drop), with 375k Volvo Penta engine, 150 gal fuel capacity, hydraulic self-leveling components, 6 speed Allison transmission, 1:1 gear box, (2) 65 gpm pumps, (2) 30 gpm pumps, (1) 28 gpm Commercial shearing pump, 40 gal accumulator storage, single man cab, hydraulic leveling jacks  Price on Request

COOPER LTO-350(Ref#3177Ta)  Manufactured 1982, 96" x 200,000# mast, Detroit Series 60 engine, Allison 5860 tranmssion, mounted on 4 axle Cooper carrier  Price:  $315,000

Manufactured 1960’s, double drum, single rig mast, 64’ x 250,000# (tubing and rod racks), 70 ton blocks, 2 lines, Detroit diesel 60 gpm @ 2000 psi, hydraulic system, air clutch.  Rig was refurbished 2013/2014 at a cost of $130,000: repairs included used 65’ derrick installed, new 1” main line, repairs to air system, hydraulic system upgrade, leveling jacks, derrick ljghting, tires, 70 ton blocks installed.  But the rig has been sitting since 2015 and now needs rebuilding. It doesn’t run.    Price as is: $19,500

Manufactured 1980, completely refurbished 2004, 5 axle double drum well service unit, double 15 Parmac brake on main drum, 96" x 180,000# hydraulic raised mast, mast lighting, Detroit 60 Sereis engine, 5860 Allison 6 speed transmission, 4 hydraulic leveling jacks, dual manual outriggers, PD12 Braden utility winch, McKissick 100 ton tubing block 21-31 diving, 1000" of 1" tubing line, 13000" of 9/16" sandline  Price:  $225,000

CARDWELL KB200B SERVICE RIG(Ref#11674Ta)  72’ x 140,000# stiff mast, 40 x 10 double drum drawworks, 2 aux deck winches, tubing board, rod board, cat walks, railing, stairs, floor BOP controls and accumulator bottles, McKissick 75 ton tubing block and hook, mounted on 5 axle carrier, Detroit 8V71 diesel engine, Alliston CLBT4460 auto transmission PRICE:  $127,500

Rig manufacture 1980, mounted on 1980 GMC Brigadier with Cat 3208 engine, includes elevators & misc tools, also includes 1996 1-ton Super Duty tool truck, tandem axle, Cat 3208 diesel, sitting 1-1/2 years  Price:  $92,500

1980, 475 hp, single drum (new), reworked, 96" x 205,000# hydraulically raised mast, 6 lines,  crown block: 3 new sheaves blocks and bearings, racking board, guide wires, (2) hydraulic hoist, weight indicator, block, elevator links, fall safety device, work platform, mounted on 4 axle carrier with Detroit Series 60 diesel engine, Allison transmission, rig in excellent condition and has been well maintained, ready for use   PRICE: $115,000

SKYTOP BREWSTER RR400(Ref#13190T) Mounted on 4 axle carrier, single drum drawworks, 8x7 disc assisted brakes, tubing board, Cat3406B engine, Allison 860DB transmission, 100 ton McKissick block, Foster 58-92R tongs, misc hand tools, approx 36" base beam for rig, ready to work  Price:  $110,000

Refurbished 2017, 4 lines, 96’ x 205,000# mast, 8V71 Detroit engine, mounted on CCC, 75 ton McKissick blocks, tubing board, rod basket, work platform, rigged up and working in field  Price:  $295,000

Manufactured 1977, 72’ x 125,000# derrick, 8V71 Detroit engine (rebuilt), Allison 750 transmission, 6500’ of new 5/8” sand line, tubing line new, drum brakes new, new style McKissick blocks, working daily  Price rig only:  $157,500

Double drum drawworks with hydromatic brake, 10" brakes, 96" x 180,000# derrick, mounted on 4-axle PEMCO carrier with hydraulic support legs, 8V71 Detroit, 4460 Allison transmission, Spicer 784 split shaft gearbox, 250 hp right angle drive, 650" of 7/8" tubing line, 8000" of 9/16" swab line, 100 ton Sowa block, hydraulic winch, hydraulic weight indicator, 84" links, 2-3/8" and 2-7/8" tubing elevators, BJ tubing slips, Foster 5893R power tongs with lift in derrick, rod hook, rod stripper, rod elevators, wrenches, transfers, rod fishing tools, misc hand tools and connections  Price:  $140,000

Manufactured 1974, double drum drawworks,  double triple 96" x 180,000# derrick with a hydromatic. The rig has working line with heavy traveling block and approx. 12,000" 9/16 sand line. Mounted on Skytop carrier with tandem steering and rear ends 4 axles W/ tag axle, 4 leveling jacks, powered by an 8V-71 with a Allison 4460 transmission, (note transmission was overhauled in early 2000"s) and the engine has a new head on right bank. The rig has two leveling jacks on the rear and two leveling jacks on the front which are located right behind the steering axels. Tooled out with hydraulic rod and hydraulic tubing tongs, air slips, rod and tubing elevators, hand tools and misc over items. PRICE REDUCED:  $115,000

Double drum, double pole 8-5/8" x 7 x65", 6,000" of 2-7/8" line, mounted on 1974 International Model 2070A tandem axle truck with Detroit diesel engine, leveling jacks, 454 Chevy propane engine on deck with 250 gallon propane tank, automatic transmission for smooth operating, Foster 58 power tongs, Guiberso air clips, tooled for tubing and rods, will do 6000" of 7" tubing, currently working    Price:  $89,500

Double drum, 70" pole, 4000" of new line, new power tongs, mud pump, power swivel, new 8.3L Cummins deck engine, mounted on 1979 Mack superliner with 400 Cummins engine, 13 sp transmission, completely tooled, 10 new bits, 4 drill collars, ready to work  Price:  $170,000

10 x 13 pole, double Drum, Franks 33” air over grease, brakes in good shape, 7/8” tubing line, tubing blocks, tong pressure adjustment, hi/low on tubing, air slips control, master kill on drawworks, Foster 36 with 8’ lift ram, air backup, swing around tong rack, mounted on 2001 Freightliner F80 truck, Cat C12 Series 3125, Fuller 9-speed transmission, PTO, winch for pole scope Tulsa 48, blocks raise pole, dual fuel tank, dual battery, 50 gal hyd tank, toolboxes, hydraulic outriggers, BJ rod tongs, ¾” and 7/8” heads, tools, swabs, extra tongs, orbits, drilling head  Price:  $242,500

Double drum (second drum is removed, rig is running as single drum), hyd pole and down riggers, mounted on 1990 Crane Carrier, 9 sp Eaton Fuller transmission, 100,000 miles, 8 x 10 telescoping poles, 3/4” cable, no tooling  Price:  $52,500

10 x 13” pole, single drum, mounted on 1980 Brigadier 9500 Series truck with 671 inline Detroit, drop box, travelling blocks, tubing lines, hyd jacks, no tooling, sitting since 2000  PRICE:  $49,500

Manufactured 1960, Double drum, all air operated, 7/8" drill line, 9/16" sandline, 60" single pole 10 x 13, mounted on Franks 3 axle carrier, will handle 8000" of 2-3/8" tubing or 6000" of 2-7/8" tubing, tools include tongs and handling tools, good condition  Price:  $69,500

Cable Tool Drilling and Completion Rig, 60" double poles rated to 150,000#, 5000" drill capacity, 10,000" pull capacity, propane Waukesha 145 engine, 500 gal propane tank, trailer moutned with International 4300 truck, last drilled 2012, 2300" drill line on drum, 3500" on spool casing drum, heavy block sandline drum, cat heads each side, tooling, spare engine  Price:  $72,500

Triple drum, casing line, sand line, drill line, 8-10” double poles, mounted on International tandem axle truck with Cummins diesel engine, 10 speed transmission, Perkins diesel engine on deck, tools, 7-7/8” carbide bit, 2 smaller bits, make up tools  Price:  $42,500 – West Texas

400’ of 7/8” block line, 9/16” sandline drum (no cable), 2000’ of ¾” drilling drum, 3 McKissick sheaves, air clutches and controls, mounted on 1961 Mack truck with 250 hp Cummins engine, older rig but runs good.  Includes elevators, oil saver pump, no BJ tongs, currently working.  Price:  $87,500 - Pennsylvania

Triple drum, friction clutch, cathead (sandline holds 2400’ of 5/8” line), mounted on tandem axle Chevy truck with 427 gasoline engine, 8-5/8” x 45’ single pole, new tires, power steering, wireline unit, good usable rig for shallow oil/gas lease, drills, workover, swab capabilities, no tools  Price:  $112,500 - Oklahoma

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Oil rig equipment is expensive due to the size and operations carried out by such large machinery. Purchasing a newly constructed drill rig is a huge investment.

As such, you’ll want to be sure you have the right expectations before you begin searching for one to complete your assignment. This article will discuss just what a drill rig does and the estimated costs involved in the drilling process.

When you need a machine powerful enough to bore through the earth’s crust to retrieve minerals, gas, or any other natural resources, a drill rig will get the job done. Each rig is designed for the environment they’re operating in and the product being extracted. Those two factors greatly affect the cost of the rig you’re looking to purchase.

A standard land rig with 1,500 to 1,700 horsepower will cost between $14 million and $25 million to own. An offshore oil rig cost is much higher, starting at $20 million and going as high as $1 billion. Owning your drill rig will save you money in the long run, especially when considering the daily cost of operations.

Your daily rate depends on the rig type, distance from shore, drilling depth, and water depth. Onshore drilling rates range from $200,000 to $310,000 each day. Offshore drilling can cost between $600,000 to $800,000 per day.

Several factors impact the oil rig cost, including construction, including materials, market conditions, equipment prices, and more. We’ll cover the basics, so you have a realistic expectation when searching for a rig price.

Cost and demand go hand-in-hand. When there is a high demand for building new rigs, the cost rises because a limited number of shipyards can provide the service.

For example, in the early 2000s, there wasn’t a demand for new rig construction, so rates were low. In the mid-2000s, demand increased, and prices rose, but after the 2008 recession, demand decreased. But the prices didn’t drop significantly as the recession wasn’t expected to last long.

The materials used in making a drill rig are a key component in construction costs. The material used most, steel, comes in various strengths, and the stronger the steel, the higher it’s priced. When steel prices are low, rigs will be cheaper to produce; when steel prices rise, so do the costs of the rigs.

Concrete is another material that will raise production costs. It’s often used in environments containing salt water as a way of avoiding corrosion and rusting. Concrete usually costs about 7% to 10% more than steel.

The cost of additional services needed for constructing wells will begin to add up. Phone bills and fees for transferring data are part of your communication cost. For those working offshore, rig positioning will be another fee.

There are two types of oil rigs, jackups, and floaters. Floaters aren’t attached to or resting on the seafloor. Jackups have support legs that allow the rig to be raised or lowered. Each type has different equipment to assist with the drilling process.

The engines, generators, cranes, and other oil rig components are purchased from a third party and assembled by the rig builder. Non-drilling related equipment is about 30% to 60% of the total cost.

Since most of the parts used are made from steel, the fluctuations in the steel market will influence the rig’s price. Demand for the additional equipment to fit on the rig will also play a part in costs.

Where your rig is built impacts the labor costs, which affect the price of the drill rig. It’s estimated that labor is 10% to 15% of the total cost of the rig is built internationally. While the U.S. and Korea have similar costs, Singapore charges three times less.

Each dollar spent on labor in the U.S. generates $3 in revenue, while in Singapore and South Korea, every dollar generates $7 to $10 in revenue. Since labor costs are typically lower internationally, the cost of your rig won’t be as high.

Always expect and prepare for the unexpected by setting aside a portion of the budget for allowances. Once you start drilling, you can’t be sure what you’re going to find, and variances in the geological structure could require different equipment and delay the process. Both of these instances will increase the cost of the rig being used.

Preparing an area for drilling can mean building roads to the site. These roads need to support heavy machinery and can take 15 to 20 days to build. Preparation also varies based on the environment.

Marshes, land, and offshore drilling all have their own preparation needs. It can take several weeks before drilling can begin, and each day spent getting the site ready comes with a hefty cost.

The drilling depth and well complexity are primary cost influencers. Once the drill rig is moved into position, it can take a team of 30 to 40 companies to complete the process. Costs can easily top $4 million during the drilling phase and take about three weeks to finish.

Positioning drilling rigs isn’t an easy task. It takes 3 to 5 days to move in and assemble a rig for well digging. Once the job is complete, the rig has to be disassembled and moved again. Rates hover between $100,000 and $350,000 depending on how far the rig is being transported.

The oil industry is very lucrative, and the machines used to drill for the resource are not cheap. Oil rigs are heavy-duty machines needed to reach extreme depths.

The harsh environments they’re in demand that they are built with the best materials available. If you need a drill rig, it’s important to keep in mind all the factors that contribute to the cost of the equipment so you can budget correctly.

Workovers are the most common expenditure operators need on their oilfields. However, finding a service provider and getting their rates are not readily available in the industry. Operators would benefit from knowing the market average for a workover and gain reassurance they are getting a fair price for their services. This research is based on finding workover rigs for Zapata, Texas. The graph represents four service provider companies and their hourly rate for a workover rig.

It is important to note that due to slower oil development in recent years from the downturn in 2015 to the pandemic and downturn in 2020, smaller workover rig companies in Zapata, Texas have increasingly moved to the Permian Basin or have been acquired by larger service companies in the area. This has caused the workover rig service industry to be dominated by a few major servicers around Zapata. For Zapata, the ideal areas to look for servicers or workover rigs are Alice, Laredo, and Freer in Texas.

Hourly rates for workover rigs vary and there are always competitors for services, especially for services as common as a workover rig. The market average price for a service provider is intended to provide the oil and gas operator better insight on the cost of services around their area.

An operator who wanted bids on a workover for his well requested this vendor list and decided to get connected with Company B to get the work done. He said it was a quick decision because what he was already paying for and what he was going to pay for cost more than the rates on this list.

In order to help oil and gas operators reduce operational expenditure, Petrofly researches the servicing market to provide the most economical options for your oilfield service needs. Petrofly’s platform is the complete upstream solution and leveraging the market average is one of the unique tools operators utilize to ensure lower operational costs.

Updated monthly, the Offshore Rig Day Rate Trends report tracks competitive mobile offshore drilling fleet day rates and utilization across three representative rig categories. Constructed with information from rig operators and owners worldwide, offshore rig day rate data is the most accurate information of its type available from any source.

Day rates published by IHS Markit are presented in good faith based on our best understanding of the market at the time, and may be subject to adjustment. Day rates are charted as an average of the high and low for each month. Utilization is the percentage of contracted rigs out of the total competitive fleet supply. The data is updated on or about the 15th of each month. The data points used to derive the averages are available to subscribers to Petrodata"s RigBase or RigPoint market intelligence tools.

The Downstream costs services team would like to invite you to our Houston Enclave Parkway office for the Third Quarter 2022 Downstream Costs Update...

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OSLO, May 27 (Reuters) - Rental rates for offshore oil and gas rigs have rocketed higher, boosted by a race to lift production because of the war in Ukraine and a recovery in demand after the COVID-19 pandemic.

Drilling companies are in a stronger position to demand higher dayrates for their equipment after several lean years that led to a wave of mergers and pushed them to scrap older rigs, leaving fewer available now that demand is rebounding.

Daily costs to hire a rig, known as the dayrate, have risen fastest for deepwater equipment in the "Golden Triangle" from the U.S. Gulf of Mexico to offshore West Africa and Brazil.

"Rates are picking up quite rapidly, especially in West Africa," said Cinnamon Edralin, head of rig market analysis at Oslo-based Esgian. "Last year, we were at $200,000, this year we are firmly in the $300,000s and quickly heading to $400,000."

Conflict in Ukraine has helped push up demand for rigs as the United States, Europe and other allies look for alternatives to Russian oil and gas supplies. The European Union aims to end the use of Russian hydrocarbons by 2027. read more

For Britain and Norway, the main North Sea producers, the contracted rig count stood at 40 in April, up from 37 at the end of 2020 but below 51 before the pandemic, Esgian data showed.

Valaris (VAL.N), the world"s largest offshore driller by fleet size, said in April it had won a contract with an international oil major with dayrates "not seen in the past seven years for drill ship work offshore West Africa".

Transocean , which operates ultra-deepwater and harsh environment rigs, said in its annual report for 2021 that contractual dayrates for its fleet averaged $401,000 for 2023 and $467,000 for 2024, compared with $345,000 this year.

"Offshore drilling activity is increasing in almost every deepwater geography, with the "Golden Triangle" being the key driver of demand and dayrate growth," Seadrill said.

It said demand for jack-up rigs used in shallow waters had climbed, particularly in the Middle East, while demand for rigs on the Norwegian continental shelf was expected to rise until the end of 2023 with the increased focus on energy security.

This follows lean years of investment in exploration and production (E&P) after the 2014-2016 oil price dive followed by the 2020 COVID-19 related crash that pushed drillers to restructure, merge and scrap old rigs.

Seadrill"s prospectus said the worldwide total of floating rigs stood at 193 in March, down from 257 in March 2018, and the number of jack-up rigs was 487, down from 532. It said more than 300 rigs had been scrapped since the start of 2015.

OSLO, Sept 14 (Reuters) - Rental rates for offshore oil and gas rigs could rise to $500,000 in the coming months, company executives said on Wednesday.

Daily costs to hire a rig, known as the dayrate, have already more than doubled from two years ago to some $300,000, with some top-end rates reaching close to $400,000, according to Oslo-based brokerage Pareto Securities.

Drilling companies are in a stronger position to demand higher rates to rent their equipment after several lean years led to a wave of mergers and pushed them to scrap older rigs, leaving fewer available now that demand is rebounding. read more

A workover rig. Operating rates vary. Petrodata Offshore Drilling Fleet Day Rate Index offers monthly updates of competitive mobile offshore drilling fleet day rates and utilization across four rig.

Using econometric analysis, we examine the effects of gas and oil prices, rig capacity utilisation, contract length and lead time, and rig-specific characteristics on. More than % of surveyed drillers expect to put more rigs to work over the next US land rig day rates on average—aggregated across all rig classes and all. The value lossr(i, last) is equal to the estimated flow rate of well r multiplied by its iddle time once it is assigned to the last position of workover rig i. This idle time is. A discussion of crude oil prices, the relationship between prices and rig count, Workover rig count is another measure of the health of the oil and gas industry. Table 2. Sample Operations Sequence--. Mechanical Descaling. COST. TOTAL COST. UNIT. RATE. MOBILIZATION-OEMOBILIZATION. Workover Rig. 20 hrs.

More than 75 years ago, it was. This allows increased recovery rates. Both drilling rigs and workover rigs are expensive resources that are typically limited well in the field, then we may be able to maintain the field production rate. United Kingdom operating over 25 drilling and workover rigs and providing a Marriott offers a selection of business arrangements from traditional day rate. Offshore Rig Fleet. Accommo- dation. Jack-up. Super. Self-. Workover. Jack-up The improvement in rig rates that has characterized our North American. The rigs have initial positions and.

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Specialties: Workover Rig, Swabbing Units, Air Packages For more information on rates and availability please call (701)8 7201 or email any questions to. The company owns 3 drilling rigs, 3 workover rigs, as well as special-purpose Availability of the Top drive allows drilling wells at high rate and reduces the risk. Cost Analysis The overwhelming majority of the equipment is manufactured by third parties. Constructed with information from rig operators and owners worldwide, offshore rig day rate data is the most accurate information of its type available from any source. Offshore Rig Day Rate Trend Coverage. IHS Markit can provide current and historical day rates for all offshore rig categories worldwide. Most workover rig horsepower falls within the range of the 500 series.

The right to enter and drill on the property owner"s land is accomplished by obtaining a lease. The lease is subject to title search and proper recording in much the same way as real estate. Many times the bonus for a mineral lease exceeds the value of the property itself. Between legal cost for title work and lease bonus wells see costs in excess of $1,000,000 for leasing alone. Some leases with multiple mineral and land owners take several months if not years to negotiate and finalize.

Most times, a road must be built to the site. Good roads are a necessity in order for trucks and heavy equipment to reach the well. Once at the site, a level area is cleared about 2/3 the size of a football field. Bulldozers, dump trucks, excavators, and road graders are typically used for this process. General this process takes between 2 and 3 weeks, but if extensive road work is needed it can take much longer Construction of roads and drilling site is a major cost factor which can easily exceed $400,000 per location.

When the site is prepared, the drilling rig can be moved into position. A rotary rig is the modern equipment used. It is capable of drilling over 1,000 feet per day through use of a rotary bit driven by huge engines. Fluid or air if forced under pressure down the center of the drill stem to clean out the hole continuously during drilling. The drilling operation is a very complicated one requiring enormous amounts of planning and teamwork. A modern drilling project can encompass the use of 30-40 different individual companies to fully complete the process. Cost depend on the depth and complexity of the well. Modern horizontal well drilling costs can easily exceed $4,000,000 just in the drilling phase. Without drilling complications these wells generally take about 3 weeks for the drilling phase.

Moving a drilling rig is not a simple task. Every time a well is drilling a drilling rig must be moved in and assembled. The process normally takes 3-5 days. After the well is drilled the rig must be cleaned and disassembled and moved off location. Rig mobilization and assembly expenses vary depending on how far the rig must be transported, but generally run between $100,000 to $350,000..

Costs outlines above are only some of the cost incurred preparing, drilling, completing and producing of an oil or gas well. in total, this complete process will encompass 40-50 different individual contracting companies and hundreds of additional minor expenses.

Every workover rig available is going right now in the Bakken, North Dakota’s top oil and gas regulator Lynn Helms said on Friday, during his monthly oil production report, as companies try to get wells online as quickly as possible after back-to-back blizzards idled a substantial number of four and five-well pads in Williams, Divide, and McKenzie counties.

March was a good month for production, Helms said, with a 2.8 percent increase in crude oil production from 1.089 million barrels per day to 1.12 million barrels per day. That figure is 2 percent above revenue forecast. Gas production, meanwhile, rose 4.5 percent to 3.01 billion cubic feet per day from 2.87 billion cubic feet per day in February.

Gas capture percentages were 95 percent, and this time Fort Berthold was a bright spot, with 97 percent capture. Helms said he expects continued improvement in the Fort Berthold area, with new solutions for gas capture in the works for the Twin Buttes area, which has been a problem spot.

“We saw production in the first blizzard dropped from about 1.1 million barrels a day to 750,000 a day,” Helms said. “We recovered not quite back to a million barrels a day. And then the second blizzard came in. It was heavily impactful on electrical power and infrastructure in the Bakken oil fields.”

“It took a week, or I guess within a little bit less than a week, we recovered to 700,000 and it’s taken another week, we think we’re back at about a million barrels a day.”

“Just this past week, our largest gas plant came on and that’s really enabled a lot of production to come back on,” Helms said. “So we’re back to a million barrels a day, maybe a little more. You know all of the large operators reported enormous production losses. And of course that has led to the deployment of every workover rig available being out there trying to get wells back on production.”

In his discussions with drilling contractors, Helms has learned that most drilling rigs went south to Texas and New Mexico, both of which escape winter sooner than the Bakken. Those areas hired the available workforce, too, which has added to the Bakken’s difficulty in attracting workforce.

“It’s taking around two months to train and deploy a drilling rig and crew, and very similar timeframes for frack crews,” Helms said. “So it’s just very, very slowly coming back.”

“I was reading an article today, and some of the large operators were saying, ‘Well you know we could bid up the price to hire frack crews, but all we would be doing is hiring them away from smaller companies that can’t afford to pay as much.’ So there wouldn’t be a gain in the number operating, in the number of wells completed, or really a more rapid rise in production. So it’s very much workforce limited.”

North Dakota rig counts are at 40 right now and Montana rigs are at 2, according to figures from North Dakota Pipeline Authority Justin Kringstad. Helms said the Bakken hasn’t seen those numbers since March of 2020. There are about 15 frack crews running now, a number last seen in April 2020.

“Today’s price is almost $102 a barrel for North Dakota light sweet and $106 West Texas,” Helms said. “So we’re estimating about $104 a barrel for North Dakota crude prices. That’s more than double revenue forecast. Revenue forecast was based on $50 oil, so that’s 108 percent above that.”

North Dakota is a few days away from a May 18 deadline for protests in the projected June sale, which has 15 parcels listed. If there’s a protest against one or more of the tracts, they could be pulled from the sale for further consideration.