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
Pre-Proposal Collaboration Agreement (ppca)
IndustryA PPCA is a binding agreement signed before subcontractors jointly develop a bid or proposal. It sets rules around cost-sharing, confidentiality, and each party's scope. This protects your pricing and proprietary methods during the teaming process.
Directional Drilling
IndustryA drilling technique used to steer a wellbore along a non-vertical path to reach a target zone. Subcontractors supporting these operations often require specialised tooling, MWD (Measurement While Drilling) equipment, and certified directional hands. Scopes can shift quickly, so flexible crew and equipment mobilisation is essential.
Mud Logging
IndustryA well-site service that monitors drilling fluid returns to detect hydrocarbons and analyse formation data in real time. Subcontractors provide specialised technicians and instrumentation units for this work. It is commonly scoped as a standalone package within a drilling contract.
Trade Contractor
IndustryA specialised subcontractor hired to perform a specific skilled trade, such as electrical, welding, or pipefitting. They are typically engaged by a general contractor rather than the project owner directly. Trade contractors are responsible for supplying their own tools, crew, and trade-specific certifications.
SPE (Society of Petroleum Engineers)
IndustryA global professional organisation that publishes technical standards, research, and best practices used across the oil and gas industry. Subcontractors may reference SPE papers and guidelines to meet operator technical requirements or bid on specialised work.
Frac Flowback
IndustryThe phase after hydraulic fracturing when water, sand, and hydrocarbons flow back to surface from the wellbore. Subcontractors are often mobilised quickly to manage fluid handling, testing, and disposal. Flowback work can be short-duration but requires crews and equipment on standby.
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.
1 month ago IndustryCanada Greenlights 1M-Bpd Alberta-to-Pacific Pipeline for 2027 Start
Canada and Alberta unveiled plans for a new 1-million-barrel-per-day pipeline from the oil sands to British Columbia's coast, with construction targeted to start as early as September 2027.
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