Types of Contract

There are four basic types of contract – indicated below – and we are happy to work with clients to identify the one most suited to the work to be undertaken. It is possible to combine elements of these alternative contracts or modify the basic structure of the selected arrangement.

It all starts with a discussion to ascertain the client’s detailed requirements, the scope of the work to be undertaken, and the level of the client’s anticipated involvement in the project.

Lump Sum
Various components of the well planning and implementation phases are paid on the basis of predetermined lump sums.

Day Rate
Well planning and implementation phases are paid on the basis of agreed day rates and client-approved timesheets.

Performance
AGR Petroleum Services remuneration is subject to the payment of bonuses or penalties, determined by the performance as measured against well objectives and performance criteria agreed prior to the commencement of operations. This type of contract ensures that the objectives of both AGR Petroleum Services and the client are kept absolutely aligned.

Turnkey
In response to customer demand AGR Petroleum Services is launching a Turnkey drilling service in the US. This will be in addition to the regular well management service offered by FJ Brown.