Planning of geothermal drilling projects

Abstract

Drilling is one of the most critical parts of any geothermal project. The cost of drilling forms a significant proportion of the overall project cost, especially in the early exploration stage where the project risk is greatest. The cost of wells varies significantly between projects, companies and geographical regions. The reason for this is not fully known, however, in addition to geological reasons, factors such as type of drilling contract and project preparation is likely to have significant impact. This paper discusses the major factors impacting the preparation of drilling projects. It provides an overview of the procurement and contract issues and is aimed to stimulate project managers to consider various options during the planning of geothermal drilling projects.