🇦🇺Australia

Well Drilling Cost Overruns

2 verified sources

Definition

Manual tracking fails to account for ROP declines with depth, leading to higher daily rig costs and spare parts expenses. In Australia, material costs are 29% higher, amplifying overruns.

Key Findings

  • Financial Impact: AUD 2.3M - 3.3M per well (depth 3000-4500m); daily rig AUD 13,000+ (45+ days); 18-24% increase per extra casing
  • Frequency: Per well project
  • Root Cause: Inaccurate real-time tracking of drilling metrics (ROP, NPT) and inventory usage

Why This Matters

The Pitch: Geothermal players in Australia 🇦🇺 face AUD 2.3M+ per well in drilling costs. Automation of well drilling and completion cost tracking eliminates overruns from manual errors.

Affected Stakeholders

Drilling Manager, Cost Controller, Project Engineer

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Idle Rig Capacity Losses

AUD 500K mobilization + AUD 13,000/day x excess days (e.g., 45 days @ AUD 499K drilling contract)

Brine Reinjection Clogging Costs

AUD 50,000-200,000/year per project in cleaning, filtration maintenance, and lost capacity (based on 7 projects avoiding severe issues via 25-100 micron filters at 2-10 bar pressures)

Reinjection-Induced Capacity Decline

10-30% reduction in injection rates leading to AUD 500,000+ annual revenue loss per MW capacity from downtime and suboptimal flows

Environmental Non-Reinjection Fines

AUD 50,000-500,000 per violation (EPA fines for wastewater mismanagement) + remediation costs

Capacity Factor Reporting Losses

AUD30-65/MWh lost revenue from unclaimed LGCs; potential 2-5% annual revenue leakage for eligible plants

AEMO Reporting Non-Compliance Fines

AUD5,000-50,000 per reporting breach; plus lost dispatch revenue from capacity under-reporting

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