The percentage of time a rig is actively working versus sitting idle. For subcontractors, high rig utilisation means steady billable hours and predictable revenue. Low utilisation signals contract gaps that strain cash flow and crew retention.
Rig Utilization
Related Terms
DMR (Damage Mechanism Review)
IndustryA structured engineering assessment identifying how equipment or piping could degrade, corrode, or fail. Subcontractors use DMR findings to scope inspection work and apply correct procedures. Ignoring DMR requirements can result in scope gaps, rework, or safety incidents.
Tank Farm
IndustryA designated site containing multiple large storage tanks for oil, gas, or chemicals. Subcontractors frequently perform inspection, maintenance, and cleaning work at these facilities. Access permits and confined space certifications are typically required on site.
Cavern Infrastructure
IndustryUnderground storage facilities, typically salt caverns, used to store hydrocarbons like natural gas or crude oil. Subcontractors may be engaged for cavern construction, well drilling, piping, and surface facility work. Projects often involve specialised equipment and compressed timelines tied to storage demand cycles.
Export Terminal
IndustryA facility where oil, gas, or LNG is transferred from pipelines or storage for shipment to buyers. Subcontractors are often mobilised here for maintenance, inspection, and commissioning work. Security clearances and site-specific safety certifications are typically required.
Modular Camp
IndustryA prefabricated, relocatable accommodation facility used to house workers on remote oil & gas or construction sites. Units are shipped and assembled on-site, then dismantled when the project ends. Subcontractors may bill camp costs separately or include them in their overall project pricing.
Tolerance Zone
IndustryThe acceptable range of variation allowed in measurements, materials, or workmanship on a job site. Subcontractors must stay within these limits or face rework orders and cost penalties. Specs are set by the prime contractor or engineering drawings.
Latest Industry News
AKITA Adds Six Rigs, Enters Multi-Year Utilization Deal with Paramount
AKITA Drilling has closed its acquisition of Fox Drilling from Paramount Resources, adding six triple rigs and securing a three-year, 2,700-day rig utilization commitment.
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Venture Global signed a 20-year LNG supply deal with China Gas as its Plaquemines and CP2 projects clear regulatory and equipment milestones, signaling sustained Gulf Coast construction demand.
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Wood secured a five-year, $200 million construction services contract from ExxonMobil PNG covering brownfield work across the PNG LNG project's gas plants, pipelines, and well pads.
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