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Industry Glossary Term

Subcontractor

Related Terms

Rig Utilization

Industry

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.

Throughput

Industry

The volume of work or units a crew completes within a set timeframe. Higher throughput means more billable output per shift, directly affecting your contract profitability. Subcontractors often track throughput to justify crew sizes and equipment needs.

Ip120 (initial Production 120-Day Rate)

Industry

The average daily production output of a new well over its first 120 days. Operators use this benchmark to schedule and extend field service contracts. Strong IP120 results often trigger follow-on work for completions and production crews.

Refined Products Pipeline

Industry

A pipeline system that transports processed petroleum products — such as gasoline, diesel, and jet fuel — from refineries to distribution terminals. Subcontractors are commonly mobilised for inspection, maintenance, and integrity work on these lines. Strict product contamination and safety protocols apply, requiring up-to-date certifications.

Primary Term

Industry

The fixed initial period of a service contract during which either party is typically locked in. For subcontractors, it sets the guaranteed window to recover mobilisation costs and generate revenue. Work orders or rates often cannot be renegotiated until this period expires.

Production Shut-in

Industry

A temporary halt to oil or gas production at a well or facility, ordered by the operator. For subcontractors, this often means suspended work orders and delayed revenue until operations resume. Standby rates and demobilisation terms in your contract become critical during a shut-in.

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