Rig Count

A conditional agreement between a producer and gas buyer that must be satisfied before a project moves to full development. For subcontractors, it signals that major field mobilisation and long-term work commitments depend on this deal closing. Delays or failed negotiations can stall contracts, procurement, and crew deployment.

A non-binding agreement outlining the intent to work together before a formal contract is signed. Subcontractors use MOUs to secure preferred vendor status or reserve capacity for upcoming projects. They carry no payment guarantee, so avoid mobilising resources based solely on an MOU.

A failure mode where metal components crack under the combined effect of tensile stress and corrosive environments. Subcontractors must inspect susceptible equipment — like pipelines, pressure vessels, and lifting gear — for early signs. Missed SCC (Stress-Corrosion Cracking) damage can trigger costly shutdowns, liability claims, or failed inspections.

A high-voltage power line carrying 500 kilovolts, typically built to move bulk electricity across long distances. Subcontractors on these projects must hold specialised high-voltage certifications and follow strict safety exclusion zones. Work scopes often include tower erection, conductor stringing, and ground grid installation.

The slow, permanent deformation of metal components under sustained stress at elevated temperatures. Subcontractors must watch for creep in pressure vessels, piping, and structural welds during high-heat operations. Missed signs can lead to equipment failure, costly shutdowns, and liability exposure.

A major capital project with a development timeline spanning several years, such as an LNG (Liquefied Natural Gas) facility or oilsands expansion. For subcontractors, these projects can offer extended contract opportunities but require careful cash-flow planning. Mobilisation costs and payment schedules must be negotiated carefully, as revenue is spread over a long horizon.

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.

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.