Big Oil Firms Crack The Whip Over Service Companies

"If we are not able to lower the cost development, decision makers will move away from the North Sea once the ongoing projects are done," Kvaerner's Haugan said.

The International Energy Agency sees oil prices down at $102 per barrel next year from the current $107 as several producers ramp up output, a big change for energy companies that have commissioned projects assuming higher prices.

(Additional reporting by Joachim Dagenborg, editing by William Hardy)


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Reid V. Williams  |  April 29, 2014
I totally agree with Ben Lehr. I too have 35 plus years in the O&G Industry worldwide. I was last in Kuwait where a big French Integrated Service Company had a sweet master contract with KOC. They priced items out of sight and KOC didnt say a thing. This ISC MC gave the service company cart blanc to charge whatever, to put inexperienced personnel in place and equipment that rarely worked the first time. Without completion there is a lack of incentive to make positive change. I will never consult with KOC again. .
Ben Lehr  |  April 05, 2014
On integrated services. It does not work, it breeds inexperienced personnel at the well site with very little support from office managers. It is costly and inefficient as the personnel know that they have a contract and they are backed by the service company. The integrated service company will never take accountability for anything, believe me they will try to pass the buck on everything. I work in a project in Central Africa where we have integrated services and|I can tell you with having over 40 years of oil & gas experience from the wellhead to corporate office I have never seen such a disorganized inexperienced and costly operation in my entire career. In my opinion stay away from integrated services and keep the competition at the wellhead.