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
Alternative Delivery Models
IndustryContracting arrangements beyond traditional lump-sum or day-rate structures, such as alliance, integrated project delivery, or performance-based contracts. These models shift how subcontractors are engaged, paid, and held accountable for outcomes. Understanding them helps field service firms assess risk, pricing strategy, and scope responsibilities before signing.
CMMS (Computerized Maintenance Management System)
IndustrySoftware used to schedule, track, and document equipment maintenance and work orders on job sites. Subcontractors often must log completed maintenance tasks directly into a client's CMMS. Accurate entries protect you during audits and support invoicing for billable maintenance work.
Tubulars
IndustrySteel pipes used in drilling and well construction, including casing, tubing, and drill pipe. Subcontractors handling tubulars must follow strict inspection and handling procedures. Damage during your scope can result in costly liability claims.
Appraisal Drilling
IndustryDrilling program that follows an initial discovery to confirm reservoir size and commercial viability. For subcontractors, it means short-term, high-intensity scopes between exploration and full development phases. Mobilisation windows can be tight and contract durations unpredictable.
Completions
IndustryThe phase of oil and gas well development after drilling is finished, encompassing the work required to prepare a well for production — including perforating, fracturing, and installing wellhead equipment. For subcontractors, completions represent a concentrated burst of high-demand field work where specialised crews, equipment, and services are mobilised under tight timelines.
AFE (Authorization for Expenditure)
IndustryA 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.
Latest Industry News
Fervo Energy and Google Sign Record 396 MW Geothermal PPA
Google's 396 MW power purchase agreement with Fervo Energy at Cape Station in Utah is the world's largest enhanced geothermal deal, with an option to expand to nearly 1 GW by 2030.
1 month agoIndustryMeta 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.
2 months 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.
2 months 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.
3 months 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.
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