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IndustryGlossary Term

Working Interest

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.

Related Terms

Tie-In

Industry

A 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

Industry

A 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

Industry

The 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

Industry

A 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)

Industry

A 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

Industry

A 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.

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