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Industry Glossary 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

Infrared Camera Survey

Industry

A thermal imaging inspection using IR (Infrared) cameras to detect heat anomalies in equipment, piping, or electrical systems. Subcontractors use these surveys to identify leaks, insulation failures, or overloaded components without shutting down operations. Clients often require certified IR thermographers, so confirm crew credentials before mobilising.

RNG (Renewable Natural Gas)

Industry

Biogas captured from landfills, agriculture, or wastewater and upgraded to pipeline-quality fuel. Subcontractors may encounter RNG projects as producers expand capture and processing infrastructure. Field work includes installation of compression, purification, and injection equipment.

Downstream

Industry

Refers to the refining, processing, and distribution segment of the oil and gas industry. For subcontractors, downstream work typically involves maintenance and turnarounds at refineries or petrochemical plants. These sites often have stricter safety protocols and certification requirements than upstream operations.

Chokepoint

Industry

A stage in a project where workflow bottlenecks, delaying downstream tasks and crew productivity. For subcontractors, chokepoints often occur at inspection holds, permit approvals, or material deliveries. Identifying them early helps protect schedule and avoid costly standby time.

Cold-Milled Asphalt

Industry

Reclaimed pavement material produced by grinding existing asphalt surfaces without heat. Subcontractors encounter it during road restoration work on well pads, pipeline rights-of-way, and industrial sites. It is commonly reused as base material, reducing disposal costs and material haul-off requirements.

Booster Compressor

Industry

A secondary compressor used to increase gas pressure in pipelines or processing systems when inlet pressure is too low. Subcontractors are often hired to install, operate, or maintain these units on short-term field assignments. Rental and service contracts for booster compressors are common in late-life field operations.

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