Upstream Tie-in

A processing facility that separates mixed natural gas liquids into individual products like propane, butane, and ethane. Subcontractors often work these sites for maintenance, turnarounds, and equipment servicing. Fractionators operate continuously, so field crews should expect shift-based schedules and strict hot-work permitting.

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.

A specialised subcontractor hired to perform a specific skilled trade, such as electrical, welding, or pipefitting. They are typically engaged by a general contractor rather than the project owner directly. Trade contractors are responsible for supplying their own tools, crew, and trade-specific certifications.

A technical document outlining the planned scope, procedures, and specifications for drilling or completing a well. Subcontractors use it to understand required services, equipment, and sequencing before mobilising. It directly affects how you scope work and price your bid.

Contracting arrangements beyond traditional lump-sum or day-rate structures, such as alliance, integrated project delivery, or performance-based contracts. These models shift how subcontractors are engaged, paid, and held accountable for outcomes. Understanding them helps field service firms assess risk, pricing strategy, and scope responsibilities before signing.

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.

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.