How much does it cost to drill a well in deepwater?
The total cost for operating an offshore drilling rig is around one million dollars a day, with about half million as the rig lease rate[1]. It can take six months to drill a deepwater oil well. With other costs included (e.g. completion, valves, etc.), the total cost for a single deepwater well is around $200 to $350 million dollars. That is bigger than over 50% of the companies in the United States!
Remember, it is not guaranteed to find oil down there after the long drilling campaign. You would be kissing goodbye to $200 million dollars if that happens and that happens more often than you think! That is the main reason only big boys play in deepwater.
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