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IndustryGlossary Term

Helium Co-Production

The extraction of helium as a byproduct alongside natural gas from the same well or facility. Subcontractors may encounter specialised separation equipment and handling protocols on co-production sites. Scope of work can expand to include cryogenic systems and helium storage, affecting crew certifications and equipment requirements.

Related Terms

Directional Services

Industry

Specialised drilling support that steers a wellbore along a planned trajectory rather than straight down. Subcontractors provide MWD (Measurement While Drilling) tools, mud motors, and on-site directional drillers. These crews are typically mobilised on a per-well basis under dedicated service contracts.

Excavation and Embankment

Industry

Earthwork scope covering cut (excavation) and fill (embankment) operations on a project site. Subcontractors are often paid on a unit-rate basis per cubic metre of material moved. Accurate quantity tracking is critical for proper invoicing and dispute avoidance.

Pilot Bore

Industry

A small-diameter initial hole drilled along a planned path before reaming to full size, commonly used in horizontal directional drilling. Subcontractors use it to verify alignment and ground conditions before committing to the full excavation scope.

Farm-Out

Industry

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.

Mutual Waiver of Consequential Damages

Industry

A contract clause where both parties agree not to sue each other for indirect losses like lost profits or project delays. For subcontractors, this limits your liability if your work causes a costly shutdown. It also protects you from outsized claims that far exceed your contract value.

Best-Value Selection

Industry

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.

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