Unconventional

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.

An older well built to outdated standards that may require specialised remediation, abandonment, or workover services. Subcontractors should expect non-standard equipment configurations and additional compliance requirements. Scope creep and unforeseen costs are common on legacy well projects.

Equipment or materials requiring extended procurement timelines, often months ahead of project start. Subcontractors must identify these early to avoid costly schedule delays. Late orders can stall mobilisation and trigger liquidated damages clauses.

A weekly tally of active drilling rigs operating across a region, published by companies like Baker Hughes. Subcontractors use it to gauge market demand and anticipate work volumes. A rising count typically signals increased opportunities for drilling-related field services.

A stage in a project where workflow bottlenecks, delaying downstream tasks and crew productivity. For subcontractors, chokepoints often occur at inspection holds, permit approvals, or material deliveries. Identifying them early helps protect schedule and avoid costly standby time.

A drilling schedule where wells are spaced consecutively with minimal downtime between completions. For subcontractors, it means sustained mobilisation of crews and equipment across multiple well sites. Expect extended contract durations but also compressed turnaround times between locations.

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.