ABSTRACT
The Norwegian rig service industry is in transformation. Substantial elements of innovation were observable towards the end of the boom period for rig supply, 2002 to 2013, in particular regarding contracts and organisation. This development in the supply industry on the Norwegian continental shelf was instigated by a crisis that started before the dramatic oil price fall, due to the fact that rising costs over many years put profitability under pressure. On the basis of theory and available empirical insights, this chapter outlines the conditions where specific organisational and contractual solutions are best suited. Optimum rig procurement will depend partly on whether the oil companies have time-critical drilling targets, the ability and willingness of the parties to bear risk, and the purchaser’s ability and capacity to manage and follow-up procurement.
