Fractionation

Refers to offshore oil and gas operations conducted in water depths exceeding 300 metres, where subcontractors and field service crews must hold specialised certifications, work within stricter regulatory frameworks, and often face extended mobilisation timelines and higher equipment day-rates.

A contractor award method where clients evaluate price alongside factors like safety record, experience, and equipment quality. Subcontractors are not automatically disqualified for submitting the lowest bid. Demonstrating strong credentials and reliability can outweigh a competitor's cheaper rate.

An electronic device that controls motor speed by adjusting electrical frequency, commonly found on pumps, compressors, and fans at oil and gas facilities. Subcontractors working near VFDs must follow strict electrical isolation and lockout/tagout procedures. Technicians servicing VFDs typically require specialised training and may need additional site certifications.

A standardised production metric that converts all hydrocarbons—oil, gas, and NGLs—into a single daily output figure. Operators use BOED to size contracts and scope field service requirements. Higher BOED rates typically mean larger crew needs, more equipment, and increased service volumes for subcontractors.

A drilling programme where rigs operate continuously at accelerated rates to maximise footage drilled in minimal time. Subcontractors face compressed mobilisation windows, higher equipment wear, and rapid crew rotation demands. Billing cycles and material supply chains must keep pace with the accelerated schedule.

A long-term agreement where an owner operator selects a fixed group of contractors to handle ongoing work. Subcontractors inside the alliance get preferred access to scopes but must meet strict performance and pricing benchmarks. Those outside the alliance are often locked out of bidding entirely.

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