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IndustryGlossary Term

Ip120 (initial Production 120-Day Rate)

Related Terms

Lateral (well)

Industry

The horizontal section of a directionally drilled well, extending sideways through the target formation. Laterals can stretch several kilometres, requiring extended crew mobilisations and staged service scopes. Subcontractors should clarify lateral length upfront, as it directly affects equipment needs and job duration.

Contingent Resources

Industry

Hydrocarbons discovered but not yet approved for development due to technical or commercial barriers. For subcontractors, these projects exist in planning stages but carry no guaranteed work orders. Mobilisation timelines remain uncertain until operator sanction is confirmed.

AISI (American Iron and Steel Institute)

Industry

A standards body that classifies steel grades used in oilfield and construction equipment. Subcontractors reference AISI codes when sourcing pipe, fittings, or structural steel to meet spec requirements. Knowing these grades helps avoid costly material rejections on site.

Deepwater Export Terminal

Industry

An offshore facility in deep water where oil or gas is transferred from production infrastructure to tankers or pipelines for transport. For subcontractors, these sites require specialised marine certifications and offshore safety training. Mobilisation costs are high, so confirm day-rate structures and expense recovery terms before committing crews.

Bladder Tank

Industry

A collapsible, flexible fluid storage container used on job sites to hold fuel, water, or chemicals. Subcontractors often mobilise them where permanent tanks aren't practical. They're common on remote oil and gas and construction sites.

ERP (Enterprise Resource Planning)

Industry

Software that centralises a subcontractor's core business functions, including payroll, invoicing, procurement, and scheduling. It replaces disconnected spreadsheets and paper systems with a single source of operational data. Larger GCs and operators may require subcontractors to integrate with their ERP for work orders and payment processing.

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