OPERATOR AND CONTRACTOR BENEFIT FROM INCENTIVE CONTRACTS
Bethany Brandon Eastman Christensen Houston With incentive contracts, drilling and service contractors assume greater responsibility for operations. That helps them to align their goals more closely with those of the operator. This achieves a more equitable division of the risks. Many operators and contractors believe this is a more appropriate approach to contracting drilling services. As they assume manageable responsibility, each party also has opportunities for greater reward.