Geothermal well drilling costing - a case study of Menengai geothermal field

Abstract

The cost of drilling geothermal wells forms an important component of any geothermal project. It accounts for 40% of the total investment cost for a new high temperature geothermal project (Kipsang, 2013). Proper well costing is paramount as it will have a direct bearing on the costing of steam and subsequently cost of electricity. Well costing therefore is important in future planning and budgeting for geothermal projects. It can also help in drilling economics such analysis of drilling cost per meter or foot which will in turn help in drilling optimization studies. Statistical analyses of historical drilling costs data show that the depth of the well is the major parameter explaining its overall cost. It is estimated that 56 percent of cost variability of geothermal wells is linked to depth (Cedric, 2010). It has also been shown that besides depth, other factors such as total drilling duration and well configuration influence costs of geothermal wells. The Scope of this paper will dwell on major cost components of a geothermal well.