The average daily production output of a new well over its first 120 days. Operators use this benchmark to schedule and extend field service contracts. Strong IP120 results often trigger follow-on work for completions and production crews.
Ip120 (initial Production 120-Day Rate)
Guides on this topic
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.
Related Terms
Long-Lead Items
IndustryEquipment or materials requiring extended procurement timelines, often months ahead of project start. Subcontractors must identify these early to avoid costly schedule delays. Late orders can stall mobilisation and trigger liquidated damages clauses.
Brownfield Site
IndustryAn existing facility or infrastructure that is being modified, expanded, or recommissioned rather than built from scratch. Subcontractors should expect tighter work windows, live-equipment hazards, and strict permit-to-work requirements. Scheduling and coordination with ongoing operations are critical on brownfield projects.
Mobilization/Demobilization
IndustryThe process of moving equipment and personnel to a job site (mobilization) and returning them afterward (demobilization). Often billed as separate line items.
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.
TVD (True Vertical Depth)
IndustryThe straight-line vertical distance from surface to a specific point in a wellbore, regardless of how the well is drilled — subcontractors working on directional or horizontal wells need to reference TVD (not measured depth) when scoping equipment reach, calculating hydrostatic pressures, or verifying work zone depths on service orders.
Appraisal Well
IndustryA well drilled after a discovery to confirm the size and viability of a reservoir. For subcontractors, appraisal programmes signal short-term scopes before a full development decision is made. Mobilisation windows are often tight and contracts may be limited to single-well terms.
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