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IndustryGlossary Term

Farm-Out

A farm-out occurs when an operator transfers part of its working interest in a well or lease to another company. For subcontractors, this can mean a change in who issues your work orders, purchase orders, or payment approvals mid-project. Always confirm the new operator's billing procedures and verify your contract remains valid under the new arrangement.

Related Terms

Casing Program

Industry

A well design plan specifying the size, depth, and sequence of steel pipe (casing) run into a wellbore. For subcontractors, it dictates crew scheduling, equipment requirements, and service timing. Understanding it helps you anticipate your scope and mobilisation windows.

Heavy Crude

Industry

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.

Cavern Storage

Industry

Underground storage facilities carved out of salt formations or rock, used to hold large volumes of natural gas, crude oil, or other hydrocarbons. Subcontractors handle construction, maintenance, inspection, and integrity testing at these sites, often needing confined-space and geotechnical certifications. Injection and withdrawal seasons create predictable maintenance windows, helping field service companies plan mobilisation.

Energy Transition

Industry

The global shift from fossil fuels toward renewables, hydrogen, and lower-emission energy sources. For subcontractors, it means new project types, updated certification requirements, and evolving client scopes. Diversifying skills into solar, wind, or carbon capture work helps firms stay competitive.

Hot Shot

Industry

Expedited delivery service for equipment, parts, or materials to remote job sites. Often used for urgent oilfield deliveries.

Upstream

Industry

The segment of the oil and gas industry involved in exploration and production (E&P). Includes drilling, completions, and well operations.

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