Risk Allocation in Design Contracts, Supply of Goods and Drilling of Exploratory Wells and How to Manage Them

Design, supply and drilling (EPD) contracts, referred to in the downstream industry as turnkey contracts, are new contracts in the drilling industry that can be attractive to both employer and contractor. In this type of contracts, the design, supply of equipment and goods, as well as drilling wells are the responsibility of the drilling contractor. Therefore, all risks in all three stages are the responsibility of the contractor and in this regard, these contracts are attractive to employers. Therefore, by managing and allocating new risk by placing conditions and clauses, these contracts can be replaced by the format of previous contracts. Studies and researches in the field of EPD contracts in the world and Iran in the field of production wells have been done, also projects in this field have been done in South Pars field. However, a comprehensive and complete research on this issue has not been done yet. In the exploration of exploratory wells, in the world and in Iran, research on the contractual risks of this type of contract and how to allocate these risks has not been done yet, and as a result, a project with this title has not been realized yet.

Keywords:

Design contracts , supply of goods and drilling , downstream industries , Oil and gas industry , South Pars gas field