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.
Farm-Out
Related Terms
Topside
IndustryThe above-water structure of an offshore platform, including processing equipment, living quarters, and wellheads. Subcontractors working topside must meet strict offshore safety and certification requirements. Scope of work and billing rates often differ significantly from subsea or onshore assignments.
Transmission Planning
IndustryThe long-term process of designing and expanding power grid infrastructure to meet future energy demand. For subcontractors, it drives project pipelines for line construction, right-of-way clearing, and equipment installation. Winning transmission work often requires early engagement with utilities and grid operators.
Subsea Tieback
IndustryA pipeline or flow line system that connects a new offshore wellhead or satellite field back to an existing production facility or platform, allowing operators to develop remote reserves without building standalone infrastructure. For subcontractors, tiebacks often involve specialised subsea installation, inspection, and maintenance scopes that require certified divers, ROV crews, or subsea engineering support.
Run Schedule
IndustryA timeline that outlines when specific tools, equipment, or crews are deployed downhole or on-site during an operation, dictating when a subcontractor's services are required and for how long. For field service companies, the run schedule directly determines mobilisation timing, crew rotations, and invoiceable hours on location.
Pressure Pumping
IndustryA well stimulation service involving the high-pressure injection of fluids — such as fracturing fluid, cement, or acid — into a wellbore to improve production or complete the well; for subcontractors, it represents a specialised, equipment-intensive scope of work that typically requires certified operators, dedicated pump trucks, and close coordination with the primary operator on site.
Subsea Production System
IndustryA network of underwater equipment — including wellheads, manifolds, flowlines, and control systems — installed on the seabed to extract and transport oil or gas to a surface facility, representing a specialised scope of subsea installation, inspection, and maintenance work that subcontractors must hold specific certifications and equipment to perform. For field service companies, contracts in this space typically involve saturation diving support, remotely operated vehicle (ROV) operations, or subsea engineering services under strict offshore safety and quality regimes.
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