Oil Rigs

Hydrocarbons extracted from natural gas, including propane, butane, and condensate. NGL facilities and pipelines generate steady subcontract work in processing, instrumentation, and maintenance. Understanding NGL handling requirements helps crews meet site-specific safety and equipment standards.

The process of moving equipment and personnel to a job site (mobilization) and returning them afterward (demobilization). Often billed as separate line items.

The regulated distance between wellbores on a pad or lease area. Tighter spacing means more wells drilled closer together, increasing crew density and equipment demand. Subcontractors should anticipate compressed timelines and overlapping scopes when spacing is tight.

Exploration activity conducted in remote, undeveloped, or previously unworked regions where subcontractors can expect longer mobilisation lead times, higher logistical costs, and limited access to local supply chains or support infrastructure.

A contract between an operator and a service company that establishes the general terms and conditions for all future work. Individual jobs are then executed under work orders or AFEs referencing the MSA.

A planned shutdown of a facility for maintenance, inspection, and repair. Turnarounds often require large numbers of contractors and subcontractors working intensive schedules.

What 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.