A conditional agreement between a producer and gas buyer that must be satisfied before a project moves to full development. For subcontractors, it signals that major field mobilisation and long-term work commitments depend on this deal closing. Delays or failed negotiations can stall contracts, procurement, and crew deployment.
Gas Sales Precedent Agreement
Related Terms
Fly-In Community
IndustryA remote work site accessible only by aircraft, with no road access. Subcontractors must factor in charter flight costs, crew scheduling, and extended rotations. Mobilisation logistics and baggage weight limits directly affect tool and equipment planning.
Feasibility Study
IndustryA pre-project assessment that evaluates whether a scope of work is technically and financially viable. For subcontractors, it signals early-stage work that may lead to awarded contracts. Participating in feasibility work can position your company for the larger project bid.
Shaker Screen
IndustryA mesh filter used in drilling operations to separate rock cuttings and solids from drilling fluid (mud). Subcontractors handling fluid management or solids control equipment must monitor screen condition closely. Worn or damaged screens reduce efficiency and can trigger costly downtime charges.
Field Ticket
IndustryA document created in the field that records work performed, equipment used, materials consumed, and time spent. Field tickets are the basis for invoicing and must typically be approved by the customer before payment.
FPSO (Floating Production, Storage and Offloading Unit)
IndustryA ship-shaped offshore vessel that processes and stores crude oil or gas directly at sea, then transfers it to tankers — for subcontractors, FPSOs represent remote, long-duration worksites with strict offshore safety certification requirements, specialised crew rotation logistics, and scope that can span topside maintenance, marine systems, and instrumentation work simultaneously.
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.
Latest Industry News
ConocoPhillips Locks In 30-Year North Slope Gas Deal for Alaska LNG Phase One
ConocoPhillips Alaska has signed a 30-year gas sales precedent agreement with Glenfarne Group, completing supply commitments from all three major North Slope producers needed to support a Phase One final investment decision for the Alaska LNG project.
3 months agoIndustryContinental Resources Buys FireBird Energy in Permian Expansion
Continental Resources will acquire FireBird Energy II, adding 32,000 boed and 54,000 net acres in the Midland basin as it deepens its Permian footprint.
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New long-haul pipelines could solve Permian gas takeaway by 2028, but NGI reporting shows gas treating capacity for CO2, nitrogen and sour gas may lag behind, risking localized curtailments for midstream contractors.
20 hours agoIndustryPrivate Equity Moves Into Utilities as AI Power Demand Reshapes the Grid
Oilprice.com reports utilities are selling off non-core assets to private equity for the first time in decades to fund AI-driven grid buildouts, opening a faster pipeline of transmission and gas-fired generation work for field crews.
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When operators merge, get acquired, or sell assets, subcontractor agreements are caught in the middle. Learn how M&A activity affects your MSA, payment terms, vendor status, and what to do before, during, and after a deal closes.
Industry GuideHow Rig Count Trends Affect Subcontractor Demand and What to Do About It
Rig counts are the earliest signal of where field service work is heading. Learn how to read drilling activity trends, anticipate demand shifts, and position your crew before the phone stops ringing.
Industry GuideWhat 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.
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