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IndustryGlossary Term

Liquefaction

The process of converting natural gas into liquid form (LNG) by cooling it to extreme temperatures for storage and transport. Subcontractors supporting liquefaction facilities must meet strict safety and technical certifications. Work scopes often include maintenance, insulation, and cryogenic system servicing.

Related Terms

Thermal Resource Fleet

Industry

A subcontractor's collection of heat-generating equipment, such as steam generators, line heaters, and freeze protection units. These assets are mobilised for cold-weather operations, pipeline conditioning, or process heating on oil and gas sites. Fleet size directly affects a subcontractor's capacity to bid on thermal service contracts.

Work Order

Industry

A formal document issued by a client or general contractor authorising a subcontractor to perform a specific scope of work. It outlines the job details, location, timeline, and agreed rate. Subcontractors typically cannot invoice without a valid work order number.

Npv10 (net Present Value At 10% Discount Rate)

Industry

A method operators use to value oil and gas reserves by discounting future cash flows at 10% annually. Higher NPV10 signals a healthier client who can fund long-term projects and honour contracts. Subcontractors can use it to gauge whether a prospect client's asset base justifies pursuing work with them.

Microgrid

Industry

A small, self-contained power system that operates independently from the main utility grid. Subcontractors working remote sites often rely on microgrids for consistent site power. Knowing the local power setup affects equipment compatibility and fuel logistics planning.

Jackup

Industry

A mobile offshore drilling rig with retractable legs that jack down to the seabed, elevating the platform above water. Subcontractors mobilising to a jackup must account for offshore certification, marine logistics, and platform-specific access requirements.

Ultra-Deepwater

Industry

Offshore drilling operations conducted in water depths exceeding 1,500 metres. Subcontractors working these projects require specialised certifications, equipment ratings, and offshore survival training. Mobilisation costs and logistics complexity are significantly higher than shallow-water scopes.

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