The Biggest Mistakes Made by Geotechnical Drilling Companies

The Biggest Mistakes Made by Geotechnical Drilling Companies in Saudi Arabia

Geotechnical Drilling

The recession in Saudi Arabia affecting all type of business. Oil price dropped and the country entered the Yemen war. Small geotechnical drilling companies made some mistakes to survive the current recession. Some of small companies did not survive and they closed/sold their business. below are the biggest mistakes:

1- They invested in the machines not the humans.


The ideology in Saudi Arabia is “I can bring anyone from anywhere to work for me” So the human development are not their interesting; the machines worth more! However, untrained worker with less than $1k/month salary can destroy a half million dollars machine in one second.

2- They did not care about the ongoing projects.


Most of the ongoing projects where need to some management before it ended. They cared about the huge future upcoming projects. Unfortunately, the government stop all future projects to save budget for the Yemen war. Moreover, the worst scenario happened, the ongoing projects always have a second phase or maybe three phases. The main contractor decided to look for another geotechnical service because they are not satisfied with the current service provider. I’ve got many calls asking for bid your department price for the project x. as a part of the geotechnical business I already know that project is for xyz company how to give price quotation for ongoing project! Then we realizing the situation changing rapidly and that was a new era of “quotation price war” behind the scene.


3- They invested in advertising not in business relation building. 


In my experience Ads does not working in drilling industry. When you need service you pick up your phone and call that person who working in x company asking him about what option do you have in a specific service.


4- They outsourcing rigs maintenance.


This point was the most money bleeding in their budget while it was easy to start workshop for maintenance, but the high cost of starting workshop and it is not easy to find experienced mechanical engineer specialized in drilling rigs; make them drop this option but in long term, they suffered from maintenance cost.

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5- They purchasing their drilling tools for rigs (tricones and coring tools) on demand. 


They does not have geotechnical drilling store. That affected their performance in scheduled projects because of drop shipping seller lack-time. Instead of that they could investing more money in drilling tools stoke before starting projects.

6- Accepting bad payment method or accepting bad payment condition after finish the work. 


Most of engineering projects was depending on approve from government and always all ministries have outsource consulting office. Usually you will not get your money until you finish the project that was the worst payment condition should be avoid in the negotiate stage.They forget about operation cost. So, they get lost in the middle of the project.

7- Ignoring small domestic projects while their rigs in recession. 


(For example four boreholes investigation for a villa project with report). In rare cases this project might be consulting by large consulting firm might recall this geotechnical service in large project.

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Comments

  1. First of all, glad to join the community here.

    I have found that the best way to get started in the oil and gas industry is to begin by having a look at an oil & gas specific job board and seeing which roles are available. In my opinion, it's important to use a job board as you maximize the number of jobs in one place, and avoid missing any great opportunities...saves you time endlessly scanning the internet for the best jobs! The oil & gas job board at the moment with the most jobs listed is Oil and Gas Best Jobs: Senior Electrical Engineer so it may be worth giving that a try as a starting point. Once you have a good idea of the type of jobs which are available for your skills, tailor your resume to emphasize the points which would be relevant. Then simply start sending your resume off for the jobs you like the look of (you just need to register/upload your CV once and you can apply for as many jobs as you like).



    I hope this helps!





    Charlotte

    ReplyDelete
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