How to Get Approved as a Vendor for Oil & Gas Operators as a Drilling Contractor

Nate Jones, CPCU, ARM, CLCS, AU
6 days ago
2 min read

Becoming an approved vendor for major oil & gas operators is a critical step for drilling contractors seeking long-term contracts. Operator approval ensures your business meets safety, compliance, and insurance standards required to perform drilling operations across the nation.

Wexford Insurance helps oil well drilling contractors secure the right insurance, making vendor approval faster and more reliable.

Step 1: Understand Operator Requirements

Each operator—Chevron, Shell, BP, and others—has unique vendor approval criteria. Common requirements include:

Safety programs and OSHA compliance
Operational experience and personnel qualifications
Financial stability
Insurance coverage that meets operator limits and endorsements

Insurance is often the most critical component because operators require certificates of insurance before issuing contracts.

Step 2: Obtain the Right Insurance Coverage

Operators generally require drilling contractors to carry the following:

General Liability Insurance – Covers third-party injury and property damage
Workers’ Compensation – Mandatory for employee protection and compliance
Commercial Auto – Covers trucks and transport vehicles
Control of Well / Pollution Liability – Protects against well blowouts or environmental incidents
Contractor’s Equipment Insurance – Protects rigs, tools, and equipment

Without proper insurance, your vendor application may be delayed or rejected. Wexford Insurance specializes in tailoring oil well drilling insurance programs to meet operator standards.

Step 3: Prepare Documentation

Once insurance is in place, prepare the following documents for your vendor application:

Certificates of Insurance (COIs) with operator listed as Additional Insured
OSHA logs and safety program documentation
Equipment lists and maintenance records
Proof of experience and qualified personnel

Having these documents organized demonstrates professionalism and reduces approval turnaround times.

Step 4: Apply to Operator Vendor Portals

Most operators have online vendor management systems. When applying:

Submit all required insurance documents
Upload safety and compliance records
Complete financial and operational questionnaires
Respond promptly to any operator follow-ups

Being prepared ensures faster approval and increases your chances of securing larger contracts.

Step 5: Maintain Compliance

Vendor approval isn’t a one-time task. Operators often conduct audits and require insurance updates annually. Maintaining coverage through Wexford Insurance ensures your drilling operation remains compliant and ready for contract opportunities.