CONTRACT OPERATIONS
Oilfield Contract Operations
Full Service Planning and Execution
Basin Engineering personnel are highly experienced professionals with extensive operations knowledge. We serve small start-up energy firms with minimal or no operating staff to major oil and gas companies looking to lower costs and increase efficiencies and production.
We have the infrastructure to handle as much oversight and management as our clients deem necessary - from full contract operations to providing superior wellsite personnel to assist in achieving your objectives.
Welcome to the new paradigm in oilfield contract operations, Basin Engineering is your full-service oilfield concierge.
Contract Operations Services
- Drilling / Completion / Production
- Accounting
- Joint Interest Billing
- Geology
- Land / Legal
- Reservoir Engineering
- Risk Management
- Field Supervision
- Health / Safety / Environmental
- Regulatory Compliance
- Water Management
Talk with Craig About Your Project
Contract Operations for Large Investment Portfolio
Situation
Investment company acquired multiple properties with 130+ operated wells and several hundred non-operated wells.
Action
Investors did not want to become operators, preferring to remain as managers. Basin Engineering was retained to handle all engineering and operational management of the properties with a goal of improving asset value.
Result
Our experienced team evaluated the wells, identified operating efficiencies, developed and implemented engineering designs to arrest the production decline of the portfolio.
In addition, our team assisted the investment company in divesting the operated assets
resulting in a 1.7x return on net invested capital and over $16 million cash gain.
Craig Northcutt, President
Q&A with Craig
Why does Basin offer Contact Operations?
Contract operations or contract operating was developed to solve a growing industry need. The oil industry has experienced growth in independent mineral companies and private equity firms.
Often, these companies want to focus on asset identification and development or management, not on day-to-day operations. As a result, they turn to Basin Engineering as their strategic operations resource.
How has contract operations benefitted your clients?
The clients we have helped with contract operations experienced the following benefits:
- Decreased cycle time
- Minimized personnel overhead
- Retained full control
- Aligned, not conflicting interests
- On-demand situational expertise
- Decreased headaches
What kind of companies are a fit for contract operations?
We get this question a lot and what we have found is that our contract operations services are ideally suited for:
- Private equity firms that want to stay lean
- Independent operators that want to scale quickly
- Traditional non-operators that want greater control
- Larger operators in need of temporary augmented capacity
What is the biggest misconception about contract operations today?
Historically, the oilfield defined contract operations as a guy who goes out to a well site and has some pumpers and turns in time sheets.
In contrast, we have designed contract operations around the evolving needs of the industry.
We have seen a significant increase in private equity investment in oil, along with an increase in new E&P companies being led by former large oil company executives. Each brings specific expertise to the table. The need is to flexibly augment that expertise as opportunities develop, without conflict of interest or giving up control.
Basin is uniquely positioned to fill the gaps for these companies. We've developed a complete virtual operations solution. One of our clients paid us a compliment saying we were "the mortar to their brick".