Again I beg to differ - I am a drilling and procurement contracts manager so I speak from a position of experience.
The coiled tubing unit was supplied by a service company (not a rig operator), and all service companies expressly state in their contracts that they are not responsible for failures in their equipment once it goes into the well. This is because no one can possibly say with absolute certainty what the conditions down-hole in the well are (obstructions, fill, H2s gas, junk etc).
You can write a contract putting all the risk on the service companies for any failures of their equipment in the well - but they simply will not sign it - no contract no work. The operator (Oilex) in general has to accept responsibility for equipment failures in their well - not the service provider.
OEX Price at posting:
26.1¢ Sentiment: Hold Disclosure: Held
