CPF (Central Processing Facility)

A natural gas pricing benchmark set at a Louisiana pipeline hub, widely used in North American supply contracts. When Henry Hub prices rise, upstream activity increases and subcontractor demand typically follows. Monitoring this index helps field service companies anticipate project volumes and negotiate rates.

Refers to oil reservoirs located beneath thick layers of underground salt, typically in deepwater offshore basins. For subcontractors, pre-salt projects involve specialised equipment, extended mobilisation timelines, and higher operational complexity. Expect longer contract cycles and stricter certification requirements from operators.

Oil with high viscosity and density, requiring specialised handling equipment and heat-assisted extraction methods. Field crews working heavy crude sites often face more demanding maintenance schedules and equipment wear. Subcontractors should factor in higher mobilisation and operational costs when tendering these projects.

Occurs when oversupply forces producers to pay buyers to take gas, signalling severe market stress. For subcontractors, this often triggers rapid project suspensions, deferred work orders, and delayed payments. Expect scope reductions and early contract terminations when prices turn negative.

Any post-completion operation performed on a producing well to restore or improve output. Subcontractors are often mobilised for wireline, coiled tubing, or pump work during these campaigns. Scope can change quickly, so confirm work orders before committing crew and equipment.

A rock formation made of compacted sediment fragments — like sandstone or conglomerate — that holds oil or gas. Most drilling and completions work in Western Canada targets clastic reservoirs. Knowing the formation type helps crews anticipate ground conditions and equipment requirements.

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.