back

Well Servicing with Service Rigs

Industry Code: 09903

Compulsory

This industry is used to cover oil and gas well servicing operations which are conducted with the use of well servicing rigs. Service rigs can be used on well completions once drilling operations have been completed to bring a producing well on stream as well as work over service to existing oil and gas wells. This industry is also used to cover the operation of power swivels used to replace working components of service rigs and workover units.

Operation Details:

Service rigs are smaller and more mobile than a drilling rig, (similar to a large mobile crane) and usually truck mounted. A service rig operator, derrickhand and two floorhands usually make up a service rig crew. Smaller than a drilling rig, service rigs provide an economical means of servicing a well by performing such functions as replacing downhole pumps, broken sucker rods, corroded casings, plugged screens etc. Most service rig operators will have shop operations for structural and mechanical repair on their rigs.

Power Swivels are hydraulic motor driven pipe rotating machines specifically intended to replace the drilling swivel, the kelly stem, the kelly bushing and the rotary table on service rigs and work over units. They are trailer mounted and completely portable. Power swivels can be used to provide rotary power for the internal cutting of casing, drill pipe and tubing, for drilling out packers, plugs, cement and other obstructions, for milling and scraping, drilling short distances, coring and as a utility tool in fishing operations.

All employers in this industry are members of Energy Safety Canada (ESC). Safety associations represent the interests of employers and promote workplace safety through education and other initiatives. Improved workplace safety can result in fewer claims and help lower premiums. A portion of premiums collected is allocated to the association to support these initiatives.

Underwriting Considerations:

Drilling rigs are classified under industry 09600. Servicing of a well takes place after the drilling rig has finished its operation. Service rigs are independent from the drilling company and are classified under this industry. There are a variety of service rigs and service rig functions. Each type of service rig is placed in this industry.

Operations who only rent power swivels (without operators) are classified under industry 89910, Oilfield Rentals. Generally, such operations rent a variety of oilfield equipment.

Premium Rate History:

Activities:

Gas Wells - Servicing of with Service Rigs
Oil and Gas Well Servicing By Means of Service Rig
Power Swivels - Operation of
Service Rigs - Operation of

Rate Group History:

The oil industry in general was reviewed in 1991. As a result of this review, the operation of drilling rigs was identified as a separate industry from service rigs (with no crossover of activities) and consequently remained in separate rate groups.

This industry is used to cover oil and gas well servicing operations which are conducted with the use of well servicing rigs. Service rigs can be used on well completions once drilling operations have been completed to bring a producing well on stream as well as work over service to existing oil and gas wells. This industry is also used to cover the operation of power swivels used to replace working components of service rigs and workover units.

Premium Rate History:

Activities:

Gas Wells - Servicing of with Service Rigs
Oil and Gas Well Servicing By Means of Service Rig
Power Swivels - Operation of
Service Rigs - Operation of

Operation Details:

Service rigs are smaller and more mobile than a drilling rig, (similar to a large mobile crane) and usually truck mounted. A service rig operator, derrickhand and two floorhands usually make up a service rig crew. Smaller than a drilling rig, service rigs provide an economical means of servicing a well by performing such functions as replacing downhole pumps, broken sucker rods, corroded casings, plugged screens etc. Most service rig operators will have shop operations for structural and mechanical repair on their rigs.

Power Swivels are hydraulic motor driven pipe rotating machines specifically intended to replace the drilling swivel, the kelly stem, the kelly bushing and the rotary table on service rigs and work over units. They are trailer mounted and completely portable. Power swivels can be used to provide rotary power for the internal cutting of casing, drill pipe and tubing, for drilling out packers, plugs, cement and other obstructions, for milling and scraping, drilling short distances, coring and as a utility tool in fishing operations.

All employers in this industry are members of Energy Safety Canada (ESC). Safety associations represent the interests of employers and promote workplace safety through education and other initiatives. Improved workplace safety can result in fewer claims and help lower premiums. A portion of premiums collected is allocated to the association to support these initiatives.

Underwriting Considerations:

Drilling rigs are classified under industry 09600. Servicing of a well takes place after the drilling rig has finished its operation. Service rigs are independent from the drilling company and are classified under this industry. There are a variety of service rigs and service rig functions. Each type of service rig is placed in this industry.

Operations who only rent power swivels (without operators) are classified under industry 89910, Oilfield Rentals. Generally, such operations rent a variety of oilfield equipment.

Rate Group History:

The oil industry in general was reviewed in 1991. As a result of this review, the operation of drilling rigs was identified as a separate industry from service rigs (with no crossover of activities) and consequently remained in separate rate groups.