Crine contracts to cut costs

Six standard forms of contract have been drawn up for the North Sea by the Crine Network as part of its continuing effort to cut the cost of operations. The intention is to save contractors and operators the expense of spending thousands of legal man-hours scrutinising one-off contracts that they have not encountered before and […]

Six standard forms of contract have been drawn up for the North Sea by the Crine Network as part of its continuing effort to cut the cost of operations.

The intention is to save contractors and operators the expense of spending thousands of legal man-hours scrutinising one-off contracts that they have not encountered before and find difficult to understand.

While the Crine documents are standardised, however, they claim to have sufficient flexibility to cater for specific project requirements.

By drawing together senior executives from both sides of the industry, the Crine committee which drew up the proposals hoped to achieve sufficient consensus for the new forms of contract to be broadly acceptable to all parties involved. `Hopefully they will become industry standards,’ said Eric Johnston, assistant general manager for Amerada Hess in Aberdeen, who chaired the committee.

The contracts cover onshore construction, marine construction, services, design services, well services and drilling-rig services. The Crine Network hopes to present all six to the industry at the end of June, but the one for drilling rigs may not be ready until the following month.

Johnston said no estimate had been made of what their widespread adoption could save the industry annually, but said: `It’s quite clear it will run into several million pounds.’