The total land area an operator has licensed to explore or produce hydrocarbons. Larger leasehold positions typically mean more sustained work for subcontractors across multiple well sites. It signals the operator's activity footprint and potential contract volume in a region.
Leasehold Acres
Related Terms
PWHT (Post-weld Heat Treatment)
IndustryA controlled heating and cooling process applied to welds after completion to reduce stress and improve strength. Subcontractors must confirm PWHT requirements before mobilising, as it adds time, equipment, and certified personnel to scope. Failing to price it into your bid can significantly erode job margins.
Value Stream Mapping
IndustryA visual tool that diagrams every step in a field service workflow, from job award to final invoice. It helps subcontractors identify delays, waste, and bottlenecks in their operations. Teams use it to streamline mobilisation, work execution, and billing cycles.
Suspension Order
IndustryA formal directive from a prime contractor or operator to halt work on a project temporarily. Subcontractors must stop billable activities but may still incur standby costs. Review your contract carefully, as suspension terms affect demobilisation, remobilisation, and delay compensation.
Integrated Project Delivery (ipd)
IndustryA project delivery model where owners, contractors, and subcontractors share contracts, risks, and rewards from early design through completion. Subcontractors are brought in earlier than traditional models, giving more input on planning and scheduling. Compensation is often tied to collective project outcomes rather than individual scope performance.
CSG (Casing)
IndustrySteel pipe installed in a wellbore to provide structural integrity and prevent contamination between different geological formations, requiring specialized installation and cementing services that subcontractors frequently provide during drilling operations.
FFS (Fitness-for-service)
IndustryA structured engineering assessment that determines whether ageing or damaged equipment is safe to keep operating. Subcontractors are often hired to collect inspection data, run integrity tests, or execute repairs recommended by FFS evaluations. Understanding FFS scope helps field crews prioritise work orders and meet client fitness thresholds before returning assets to service.
Latest Industry News
SandRidge Energy Acquires Cherokee Play Assets for $65 Million
SandRidge Energy has signed a deal to acquire Mid-Continent Cherokee Play assets for $65 million, adding roughly 3,000 boed of production and 7,000 net leasehold acres.
2 months agoIndustryCivil Contractors Rack Up Federal Awards as Jacobs Lands $131M OKC Water Deal
Construction Dive's weekly roundup shows Jacobs, Skanska, Brasfield & Gorrie and Granite Construction landing government infrastructure contracts worth over $300 million combined, offering fresh benchmarks for subs pricing similar public works scopes.
13 hours agoIndustrySummit Petroleum Sees Strong Results From U-Turn Laterals in Upton County
Midland-based Summit Petroleum reports an average initial production rate of 1,584 barrels per day from five U-turn lateral wells in Upton County, part of a 10-well plan built around a single section of land.
13 hours agoIndustryEIA Sees Record US Crude Output in 2026 on Permian, Gulf Gains
The EIA forecasts US crude oil production will average a record 13.8 million b/d in 2026, driven by Permian basin growth and new Gulf of Mexico projects.
yesterdayRelated Guides
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.
Industry GuideHow 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.
Industry GuideWhat 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.
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