Clastic Reservoir

A state-owned oil producer that controls exploration and production within its country. NOCs often require local content compliance, affecting subcontractor hiring and procurement. Payment cycles and approval chains can be longer than with private operators.

The percentage of scheduled time that equipment is operational and available for use on a job site. For subcontractors, high uptime directly affects billing hours, client satisfaction, and contract renewals. Downtime caused by mechanical failure or poor maintenance often falls on the subcontractor to remedy at their own cost.

Operations performed on an existing well to restore, maintain, or improve production. Includes activities like recompletions, artificial lift installation, and remedial cementing.

A contract between an operator and a service company that establishes the general terms and conditions for all future work. Individual jobs are then executed under work orders or AFEs referencing the MSA.

A budgeting document used in oil and gas projects that outlines expected costs and seeks approval before work begins. Subcontractors often work under AFEs issued by operators.

The phase of oil and gas well development after drilling is finished, encompassing the work required to prepare a well for production — including perforating, fracturing, and installing wellhead equipment. For subcontractors, completions represent a concentrated burst of high-demand field work where specialised crews, equipment, and services are mobilised under tight timelines.

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.