A long-term contract where a buyer agrees to purchase electricity from a generator at a fixed price. For subcontractors, PPAs on large sites can affect whether temporary or permanent power infrastructure is in scope. Understanding site power arrangements helps clarify mobilisation costs and equipment requirements.
PPA (Power Purchase Agreement)
Related Terms
NPRA (National Petroleum Reserve-alaska)
IndustryA large federally managed area in northwest Alaska open to oil and gas exploration and development. Subcontractors working here face extreme remote logistics, strict federal permitting, and seasonal access windows. Mobilisation costs and compliance requirements are significantly higher than conventional onshore projects.
Thermal Hotspot
IndustryAn area of abnormally high surface temperature detected during infrared inspection of electrical, mechanical, or process equipment. Hotspots often signal failing components, loose connections, or insulation breakdown requiring urgent repair. Subcontractors must document and report findings promptly to avoid liability and costly unplanned shutdowns.
HRSG (Heat Recovery Steam Generator)
IndustryA large boiler unit that captures exhaust heat from gas turbines to produce steam for power generation. Subcontractors are commonly engaged for HRSG installation, maintenance, and inspection scopes. Work typically requires certified welders, boilermakers, and compliance with pressure vessel regulations.
SCOOP (South Central Oklahoma Oil Province)
IndustryA major oil and gas play in south-central Oklahoma targeting Woodford and Springer shale formations. Subcontractors working this basin should expect high-volume drilling and completions activity. It is a key area for securing long-term field service contracts.
Instrument Air Systems
IndustryCompressed air networks that power pneumatic valves, controls, and instrumentation on oil and gas and industrial sites. Subcontractors must ensure supplied air meets strict dryness and purity standards before connecting equipment. Contaminated or wet instrument air can damage sensitive controls and trigger costly shutdowns.
NOC (National Oil Company)
IndustryA state-owned oil producer that controls exploration and production within its country. NOCs often require local content compliance, affecting subcontractor hiring and procurement. Payment cycles and approval chains can be longer than with private operators.
Latest Industry News
Meta Signs PPA for 172-MW Louisiana Solar Project With Lightsource bp
Meta has finalized a power purchase agreement with Lightsource bp for the 172-MW Mowata Solar project in Acadia Parish, Louisiana, with construction slated to start later this year.
1 month agoIndustryGoogle Signs PPA for Arkansas Mega Solar Project Built by Moss
Google has signed a power purchase agreement for the majority output of Steel River Energy Center, a 2.5-GW solar-plus-storage project in Arkansas being installed by Moss, Solar Power World reports.
1 month agoRevenueSeneca Resources and Evolution Well Services Lock In Three-Year E-Frac Deal in Appalachia
Seneca Resources and Evolution Well Services have signed a three-year electric fracturing agreement in the Appalachian basin, using field-produced natural gas to power completion operations and cut diesel costs.
2 months agoIndustryTGP Floats 219 South Expansion as 4-State Natural Gas Power Corridor Takes Shape
Tennessee Gas Pipeline opened a non-binding open season for its 219 South Project, offering up to 530,000 Dth/d of new Appalachian-to-Southeast firm capacity to meet rising power demand.
1 month agoRelated 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.
Stay sharp on field operations
Industry news and insights, delivered to your inbox.
Subscribe to FieldNews
