Step-Out Drilling

The horizontal section of a directionally drilled well, extending sideways through the target formation. Laterals can stretch several kilometres, requiring extended crew mobilisations and staged service scopes. Subcontractors should clarify lateral length upfront, as it directly affects equipment needs and job duration.

Exploration activity conducted in remote, undeveloped, or previously unworked regions where subcontractors can expect longer mobilisation lead times, higher logistical costs, and limited access to local supply chains or support infrastructure.

Expedited delivery service for equipment, parts, or materials to remote job sites. Often used for urgent oilfield deliveries.

A category of ongoing field service work covering routine inspections, preventive maintenance, and corrective repairs on infrastructure or equipment, often awarded to subcontractors through standing agreements or blanket contracts. For field service companies, IMR scopes provide a reliable stream of recurring work but typically require crews to mobilise quickly and hold multiple trade certifications to meet operator requirements.

Provincial agencies in Canada that provide workplace injury insurance. Contractors must maintain WCB coverage and good standing to work on most sites.

A voluntary safety certification program in Canada that recognizes employers who have developed health and safety management systems that meet established standards. Required by many operators in Alberta and Western Canada.

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.