Page 20 - Well Logging and Formation Evaluation

10 Well Logging and Formation Evaluation

• Lost-in-hole charge: For replacement of any tools lost in the hole during
operations. Some contractors provide insurance to the oil companies for
a fixed sum per job to indemnify them against lost-in-hole charges.
• Cable splice charge: Where tools become stuck in the hole and it is
necessary to cut the cable, a charge is usually made for such splicing.
• Processing charges: Where data require postprocessing (e.g., interpre-
tation of image data or waveform sonic), charges are usually applied in
a similar way to survey charges.
• Data charges: Provision of additional copies of log prints and/or tapes,
or data storage, may incur additional charges.
• Real-time data transmission charges: The oil company will usually be
given the option to have data transmitted directly from the wellsite to
their office, either as digital data in Log ASCII Standard or binary
format or as a print image.

Most contracts offer the oil company a discount on the total monthly
charges based on total volume of services called out during a particular
month. Some oil companies operate incentive schemes that penalize the
contractor financially based on lost time resulting from tool failures. There
may also be bonuses based on good safety performance.
When new tools being introduced by the contractor and not covered by
the contract are proposed to be run, there will normally be some negoti-
ation on special pricing. The oil company takes into account that if there
is a testing element in the new tool being run, there is a benefit accruing
to the contractor. Hence, the oil company may argue that the tool should
be run free of charge initially. The contractor will usually argue that
the oil company is benefiting from the tool’s technological advantages
over alternative older-generation tools. Often a compromise is reached
whereby the tool is run at a preferential pricing scheme (maybe equiva-
lent to the price of the tool being replaced) for the first few runs until its
usefulness has been proved. Typically the contractor will request the right
to use the data acquired for future promotion of the tool, subject to con-
fidentiality restrictions.
Most oil companies will also specify, either in the contract or in a
separate document, how data are to be delivered to their offices and
what quality-control procedures should be followed during logging. Items
typically specified in such a document will include:

• Pre- and postrun tool calibration procedures
• Sampling increments