Hammer & Conductor Installation Services

Conductor Casing / Pipe is a large diameter pipe 18" to 42" and is the first interface between surface and subsurface. It serves many purposes, such as prevent well collapse, protection against subsurface shallow gas pockets (accumulation), fluid circulation and general support for drilling a well

Category Description Image

Category Description

Conductor Casing / Pipe is a large diameter pipe 18" to 42" and is the first interface between surface and subsurface. It serves many purposes, such as prevent well collapse, protection against subsurface shallow gas pockets (accumulation), fluid circulation and general support for drilling a well.

Offshore, a conductor could be installed either by a drilling rig (as free flow) or using hammering equipment, to hammer the conductor into the soil. In certain projects, the conductor is used as a leg/foundation for a small offshore platform.

Hammers could be hydraulic or diesel and of various weight ratings. There are 4 major manufacturers of oilfield hammers worldwide, who do not provide the services directly.  In addition, guide shoes for abrasive and/or hard formations, directional shoes, drive-pipe, whipstocks and other pipe handling equipment and cutters are required for hammer services to install conductors.

As a standard practice, a conductor drivability engineering study is conducted prior to any conductor installation. Coupled with an efficiency installation job, this allows installing a conductor with perfect structural integrity.

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Risks & Opportunities

Due to high costs of installation (drilling/vessel spread cost), reliability of hammer equipment is critical

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Supply & Demand Dynamics

Demand 
The demand for hammer services is primarily driven by offshore field development activities. In the short term,  the demand originated from the oil industry will remain low. Yet, other marine industries such as wind farms, bridge construction, and other civil construction, have a significant impact on the demand for hammer equipment. This source of demand is expected to grow in 2021 thus increasing the utilization of hammer equipment.

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Key Players

 

Historically, CIS / Weatherford, Frank's Casing, FoxDrill ( Wagenborg) and Baker Hughes has been the dominant global players. MENCK GmbH, IHC Hydrohammer, Delmag, and Dawson the key manufacturers of oilfield hammer equipment. 

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Cost & Price Analysis

Prices and rates of hammer services/conductor installation generally follow the activities in the oil industry.  Daily rats for hammer equipment range from $3,000 to $10,000 per unit, and mainly depend on 1) size and type of hammer 2) Expected utilization and 3) Amortization of the equipment. 

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Strategy

Campaign-based contracting might be the best option if a significant volume of the scope allows to do it. The reason being, 1) hammers are a fairly large piece of equipment, this making mob/demobs expensive. 2) Service companies include fixed costs, hence the visibility of revenue and equipment utilization is a very attractive tool to offer to the market in order to obtain the best rates.

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