An ownership stake in an oil and gas lease that obligates the holder to pay a share of exploration and production costs. For subcontractors, knowing who holds working interest helps identify who is ultimately responsible for approving work orders and invoices. Operators typically hold majority working interest and are your primary point of contract.
Working Interest
Related Terms
Tie-In
IndustryA tie-in is the physical connection of new pipeline or equipment to an existing operational system. For subcontractors, tie-in work often requires strict scheduling around shutdowns and may involve additional safety and permitting requirements. Scope changes during tie-ins can affect billing, so clear change-order terms are essential.
Pump Station
IndustryA facility that moves oil, gas, or water through a pipeline using mechanical pumps. Subcontractors are frequently mobilised to pump stations for maintenance, inspection, and equipment servicing work. These sites often require specific safety certifications and site orientations before work begins.
Interoperability
IndustryThe ability of different software systems, tools, or equipment to work together without manual workarounds. For subcontractors, this means your timesheets, invoicing, and reporting tools can connect directly with a prime contractor's systems. It reduces double-entry errors and speeds up approvals and payments.
Batch Reactor
IndustryA closed vessel used to process materials in discrete, timed cycles rather than continuously. Subcontractors may be called to inspect, clean, or maintain these units during scheduled shutdowns. Work is typically project-based, tied to turnaround or maintenance contracts.
Failure Assessment Diagram (fad)
IndustryA FAD is an engineering tool used to assess whether a crack or defect in a component is safe to operate or requires immediate repair. Subcontractors use FAD assessments to support fitness-for-service decisions on pressurised piping, vessels, and structural welds. Results directly influence repair scopes, shutdown planning, and liability on field service contracts.
Prospective Interval
IndustryA rock formation believed to contain oil or gas, targeted for drilling or evaluation. Subcontractors are often mobilised to support exploration work within these zones. Scope and duration of field service contracts may depend on how many prospective intervals a well will test.
Latest Industry News
Empire Petroleum Takes 25% Stake in Southwest Louisiana Three-Well Development Program
Tulsa-based Empire Petroleum is participating in a three-well oil and gas development program in Calcasieu Parish, Louisiana, holding a 25% working interest in the first well with completion operations set for April 2026.
5 months agoIndustryGran Tierra Partners with Ecopetrol on Colombia Fields, Signaling New Drilling Activity Near Acordionero
Gran Tierra Energy has signed a deal to acquire a 49% working interest in the Tisquirama block in Colombia's Middle Magdalena Valley, partnering with Ecopetrol to expand waterflood and drilling operations adjacent to its Acordionero field.
5 months agoIndustryBuccaneer Energy Expands East Texas Position with Carlisle-1 Well Acquisition
Buccaneer Energy acquired 100% working interest in the Carlisle-1 well in East Texas' Pine Mills field, boosting its planned waterflood unit stake to over 50%.
5 months agoIndustryContinental Resources Buys FireBird Energy in Permian Expansion
Continental Resources will acquire FireBird Energy II, adding 32,000 boed and 54,000 net acres in the Midland basin as it deepens its Permian footprint.
20 hours agoRelated Guides
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.
Industry GuideHow 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.
Industry GuideWhat 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.
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