Alliance Contract

Steel pipe installed in a wellbore to provide structural integrity and prevent contamination between different geological formations, requiring specialized installation and cementing services that subcontractors frequently provide during drilling operations.

A designated site containing multiple large storage tanks for oil, gas, or chemicals. Subcontractors frequently perform inspection, maintenance, and cleaning work at these facilities. Access permits and confined space certifications are typically required on site.

Raw material fed into a processing facility, such as crude oil, bitumen, or natural gas. Subcontractors often support feedstock handling through pipeline work, tank maintenance, and material transfer operations.

The process of injecting produced water from oil and gas operations into approved underground formations. Subcontractors may operate or service SWD facilities, including pump maintenance, wellbore work, and fluid hauling. Understanding SWD volumes and schedules helps crews plan trucking, pit management, and injection equipment needs.

A well drilled in an unproven area to determine whether hydrocarbons are present, typically representing higher-risk, shorter-duration work for subcontractors with less certainty of follow-on contracts compared to development drilling programmes. Field service companies should account for the speculative nature of these projects when negotiating mobilisation costs and contract terms.

The number of drilling rigs actively operating in a region. Published weekly by Baker Hughes, the rig count is a leading indicator of activity levels in the oil and gas industry.

How Operator Mergers and Acquisitions Affect Your Subcontract Agreements

When operators merge, get acquired, or sell assets, subcontractor agreements are caught in the middle. Learn how M&A activity affects your MSA, payment terms, vendor status, and what to do before, during, and after a deal closes.

How Rig Count Trends Affect Subcontractor Demand and What to Do About It

Rig counts are the earliest signal of where field service work is heading. Learn how to read drilling activity trends, anticipate demand shifts, and position your crew before the phone stops ringing.

What Is an AFE in Oil and Gas and How Does It Affect Subcontractor Payments?

An AFE (Authorization for Expenditure) controls every dollar spent on an oilfield project. Learn how it affects your billing, change orders, and cash flow as a subcontractor.