Hydrovac

A contract between an operator and a service company that establishes the general terms and conditions for all future work. Individual jobs are then executed under work orders or AFEs referencing the MSA.

The permanent underground injection of captured CO2 into geological formations like depleted reservoirs or saline aquifers. Subcontractors may support well preparation, pipeline installation, monitoring equipment, and injection operations. Demand for specialised field crews is growing as carbon capture projects expand across Canada.

A contractually obligated set of activities and expenditures an operator must complete within a set timeframe, typically tied to a licence or lease agreement; for subcontractors, this creates predictable scopes of work and mobilisation opportunities as operators must execute these commitments or risk losing their rights to the asset.

A type of subsurface rock layer—primarily limestone or dolomite—that subcontractors may encounter during drilling, completions, or civil excavation work, often requiring specialised equipment, bit selections, or modified drilling programmes due to its hardness and tendency to cause lost circulation events.

The formal handover point where ownership or responsibility for a measured quantity of oil, gas, or other product moves from one party to another — typically triggering billing, invoicing, or contractual obligations for subcontractors involved in metering, transport, or handling operations. Field service crews working custody transfer points must ensure measurements are accurate and fully documented, as discrepancies can directly affect client invoices and liability.

A state-owned oil producer that controls exploration and production within its country. NOCs often require local content compliance, affecting subcontractor hiring and procurement. Payment cycles and approval chains can be longer than with private operators.

How Operator Mergers and Acquisitions Affect Your Subcontract Agreements

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.

How 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.

What 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.