Authorization for expenditure (AFE)

{
  "id": "MLC-T-OAG-000216",
  "term": "Authorization for expenditure (AFE)",
  "field": "Oil and gas",
  "definition": "A formal document outlining the estimated costs for a specific oil and gas project, such as drilling, completing, or recompleting a well. Working interest owners must approve the AFE before operations begin, committing them to their proportionate share of the expenses. It serves as a budget and a mechanism for cost control among joint venture participants.",
  "abbreviation": "AFE",
  "subject": "Oil and Gas Business",
  "url": "https://mlchart.com/terminology/oil-and-gas/authorization-for-expenditure-afe/"
}