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Daily oil & gas and construction news for subcontractors

IndustryGlossary Term

Contingent Resources

Hydrocarbons discovered but not yet approved for development due to technical or commercial barriers. For subcontractors, these projects exist in planning stages but carry no guaranteed work orders. Mobilisation timelines remain uncertain until operator sanction is confirmed.

Related Terms

Trade Contractor

Industry

A specialised subcontractor hired to perform a specific skilled trade, such as electrical, welding, or pipefitting. They are typically engaged by a general contractor rather than the project owner directly. Trade contractors are responsible for supplying their own tools, crew, and trade-specific certifications.

Derivative Goods

Industry

Products created by processing or transforming raw materials supplied under a contract, such as fabricated components or treated fluids. Subcontractors must clarify ownership rights over derivative goods before work begins. Contracts often assign these rights to the prime contractor or client by default.

Umbilicals, Risers, and Flowlines

Industry

Collectively referred to as URF, these are the subsea infrastructure components that connect wellheads to production facilities — umbilicals carry control fluids and signals, risers bring production to surface, and flowlines move product along the seabed — subcontractors are commonly engaged for their installation, inspection, maintenance, and integrity management work. Understanding the distinctions between these systems helps field crews accurately scope work orders, apply correct certifications, and bill against the right line items in offshore or subsea contracts.

Design-Build

Industry

A project delivery method where one contractor handles both engineering design and construction under a single contract. As a subcontractor, you may be brought in mid-scope with limited drawing sets, requiring flexibility. Scope creep risk is higher since designs are still evolving while field work begins.

Letter of Interest

Industry

A formal document a subcontractor submits to a prime contractor or operator to express intent to bid on upcoming work. It is not a binding commitment, but helps secure a spot in the tender process. Common in pre-qualification stages for large oilfield or construction scopes.

Major Projects Office (mpo)

Industry

A centralised owner or operator division that oversees large-scale capital projects and manages contractor relationships. Subcontractors typically submit bids, invoices, and compliance documents through the MPO rather than individual site teams. Knowing your MPO contact streamlines approvals, change orders, and payment processing.

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