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Industry Glossary Term

Land Block

A designated area of Crown or freehold land divided for exploration and production rights. Subcontractors often mobilise crews and equipment according to which land blocks an operator holds active licences for. Work scopes, access agreements, and surface rights are typically tied to specific block boundaries.

Related Terms

Core Desorption

Industry

A lab process where gas is measured as it releases from rock core samples pulled during drilling. Subcontractors handling or transporting cores must follow strict protocols to preserve sample integrity. Mishandling can compromise data and trigger costly disputes with operators.

2p Reserves

Industry

2P (Proved Plus Probable) Reserves represent the total oil or gas a client is reasonably confident exists and can extract. Operators use 2P figures to justify long-term capital spending and multi-year field development plans. Higher 2P reserves often signal sustained work programmes and stronger subcontractor demand.

AFE (Authorization for Expenditure)

Industry

A budgeting document used in oil and gas projects that outlines expected costs and seeks approval before work begins. Subcontractors often work under AFEs issued by operators.

Paying Quantities

Industry

A legal threshold where a well produces enough oil or gas to justify continued operations and generate profit. For subcontractors, it determines whether a site stays active and whether ongoing service contracts remain in force. Loss of paying quantities can trigger contract suspension or early termination clauses.

Carbon Dioxide Treater

Industry

A vessel or system used on oil and gas sites to remove CO2 (Carbon Dioxide) from produced gas or water streams. Subcontractors are often hired to install, service, and inspect these units. Proper handling requires H2S and pressure safety training.

Sand Management

Industry

The process of controlling, monitoring, and removing sand produced alongside oil and gas to protect wellbore equipment and surface facilities. Subcontractors may be hired to install sand screens, separators, or erosion monitoring systems. Poor sand management accelerates equipment wear and increases maintenance callouts.

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