VDC (Virtual Design and Construction)

Large-diameter steel casings driven into the ground before main drilling begins to stabilise the wellbore and prevent surface collapse. Subcontractors involved in conductor installation, welding, or pile-driving work are typically mobilised in this early phase. Securing this scope early can anchor longer project commitments on a well site.

Pipelines that collect oil, gas, or water from individual wellheads and route it to a central processing facility. Subcontractors frequently work on installation, inspection, and maintenance of these lines. Knowing the layout is essential for safe excavation and tie-in work.

The percentage of resource revenue an operator pays to the Crown or landowner before profits are calculated. High royalty rates can reduce operator budgets, directly affecting subcontractor hiring and field service spending. Understanding local royalty structures helps subcontractors anticipate project volumes and client cash flow.

Compressed air networks that power pneumatic valves, controls, and instrumentation on oil and gas and industrial sites. Subcontractors must ensure supplied air meets strict dryness and purity standards before connecting equipment. Contaminated or wet instrument air can damage sensitive controls and trigger costly shutdowns.

A written commitment from a client indicating they plan to award a subcontractor a contract. It allows work or mobilisation to begin before the formal contract is signed. LOIs are not always legally binding, so subcontractors should clarify payment obligations before proceeding.

A company that provides specialized services to oil and gas operators, such as drilling, completions, workover, transportation, or maintenance. Also called oilfield services (OFS).

How Operator Mergers and Acquisitions Affect Your Subcontract Agreements

When operators merge, get acquired, or sell assets, subcontractor agreements are caught in the middle. Learn how M&A activity affects your MSA, payment terms, vendor status, and what to do before, during, and after a deal closes.

How Rig Count Trends Affect Subcontractor Demand and What to Do About It

Rig counts are the earliest signal of where field service work is heading. Learn how to read drilling activity trends, anticipate demand shifts, and position your crew before the phone stops ringing.

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.