Petoro Looks to Halve Well Cost in Norway

Norway-based Petoro wants to double the number of wells and halve their cost in order to take advantage of the discoveries and fields it manages on behalf of the government.

“Developing these discoveries presents major profitability challenges. Since drilling production wells accounts for about half the cost of a development, this represents a particularly important area for making a commitment. Corresponding challenges apply for profitable recovery of the ever-decreasing volumes in mature oil fields. To meet these challenges, we need to set ambitious targets and adopt radical measures," Petoro’s Chief Executive Grethe Moen commented in a note released on Thursday.

The two main radical measures Moen is referring two are drilling costs' cut and increased capacity. 

“Good intentions have created creeping inefficiencies over time. On the other hand, the industry managed to execute standard tasks in drilling operations twice as fast before. I’m confident that, through simplification, technology, which increases cost effectiveness and a cultural shift away from seeking fault-free operation to pursuing efficiency, we can achieve radical efficiency gains compared with the present position.”