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• Customs duties – Rig and resupply;
• Taxes – Income, property, personnel;
• Labor issues – visa requirements, training of locals, local
unions;
• Legal structure – local incorporation, foreign entity;
• Political risks – expropriation, nationalization;
• Currency – repatriation of profits, currency fluctuation,
exchange rates;
• Hostilities – revolution, war, evacuation of personnel,
equipment removal;
• Change of government leadership.
Expanded infrastructure support is also a prime
consideration. For instance, in Kuwait, Venezuela, and other
international land operations, it is necessary to have autonomous
operations including a large inventory of spare parts, camps for
land rigs, and transportation equipment.
In addition, governments often require local hiring quotas. In
Kuwait, KOC requires that 10 % of those in certain job categories
should be Kuwaiti.

Flexible workforce

In Kuwait alone, Santa Fe has more than 600 employees
from 20 countries. “This mix does not happen by accident,"
Sheldon said. For example, Santa Fe has a large training center in
Egypt that also serves as a major base of operations. Yet, it would
be impossible for Santa Fe to use the Egyptian labor pool as a
primary source for labor.
One important reason to maintain a disparate workforce is
because many countries place entry restrictions, disallowing
certain workers from foreign countries to obtain work visas. Thus,
a company must have a diverse labor pool to draw upon. To
achieve a flexible workforce, Santa Fe currently recruits from
Thailand, the Philippines, India, and many other countries.

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