Service Company

The company that holds the rights to develop an oil and gas property and manages day-to-day operations. Operators hire subcontractors and service companies to perform various tasks.

A formal business arrangement where two or more companies partner to pursue a specific project or contract, which can affect subcontractors by changing who issues purchase orders, approves invoices, or holds liability on site. Field service companies should confirm early which JV partner is the contracting entity to avoid payment delays or scope disputes.

The maximum depth reached by a drilling rig during well construction, measured from the surface to the bottom of the wellbore. For subcontractors, TD determines project scope, equipment requirements, and billing milestones as it marks the completion of the drilling phase.

A project delivery model where one main contractor handles all phases from design to completion, typically creating multiple subcontracting opportunities for field service companies across different project phases. For subcontractors, EPC projects often mean working under a prime contractor who coordinates all trades and manages the overall timeline and specifications.

The upstream segment of the oil and gas industry covering the search for and extraction of hydrocarbons, representing the primary client base that hires field service subcontractors for drilling, completions, well servicing, and site construction work. Understanding whether a client operates in E&P helps subcontractors anticipate project cycles, budget timing, and the boom-and-bust demand patterns that directly affect contract volumes and payment schedules.

A 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.