GLOSSARY

1. 1P or proven reserves: Amount of oil or gas from known reservoirs which, after analysis of geological and engineering data, can be estimated with reasonable certainty of being commercially recoverable at a given date, under existing economic and political conditions and using existing technology.

2. 2C: Contingent resources are those estimated to have equal chances of being reached or exceeded.

3. 2P: Reserves are the sum of proven and probable reserves, which is equivalent to a best estimate scenario.

4. 3C: Contingent resources are those estimated to have a high degree of uncertainty.

5. 3P: Reserves are the sum of proven, probable and possible reserves, which is equivalent to the highest estimate scenario.

6. Agência Nacional de Petróleo, Gás Natural e Biocombustíveis (ANP): Brazil’s regulatory body for the oil and natural gas sector.

7. API: Method of expressing the relative density of an oil or derivative. The API (American Petroleum Institute) gravity scale, measured in degrees, varies inversely to relative density: the degree of API gravity is greater when the oil is lighter. Oils with an API degree greater than 30 are considered light, between 22 and 30 degrees API, are average, below 22 degrees API are heavy, while an API degree of less than or equal to 10 is extra heavy oil. The higher the degree of API, the greater the market value of the oil. Water depth is 401-1,500 m.

8. Associated gas: Natural gas which is produced along with oil.

9. Basin: Depression in the earth’s crust where sedimentary rocks accumulate, and which may be oil and/or gas bearing.

10. Barrel of oil equivalent: Barrels of equivalent oil per day.

11. Barrel of oil or bbl: One stock tank barrel is the standard measure of oil volume, and is equal to about 159 liters.

12. Bbl/day: Barrels per day. Method of expressing the relative density of an oil or derivative.

13. Block(s): Part(s) of a sedimentary basin, with a polygonal surface defined by the geographic coordinates of its vertices and indeterminate depth, where oil and natural gas exploration or production activities take place.

14. Boe (barrel oil equivalent): Measurement of volume of gas converted to barrels using a conversion factor in which 1,000 m3 of gas is equal to 1 m3 of oil/condensate (energy equivalent) and 1 m3 of oil/condensate equal to 6.29 barrels.

15. Boed field: Area which includes the horizontal projection of one or more reserves containing oil and/or natural gas in commercial quantities.

16. Bpd: Barrels per day.

17. Brent dated: Published daily by Platts Crude Oil Marketwire, it is the price of physical cargo of Brent crude oil leaving the Sullom Voe terminal in Great Britain, 7 to 17 days after the closing date.

18. CCOS: Commercial Chance of Success.

19. Commercial Prospects: Potential mapped by geologists and geophysicists to determine the commercial viability of an oil or natural gas field that is ready to be drilled.

20. Completion: After completing a well for production the hole is lined with steel pipes and encased by a layer of cement to prevent leaks or the collapse of its walls. A special bit then drills holes through the steel and cement, allowing liquid from oil or gas bearing areas to flow into the well. Another smaller diameter pipe (the production column) is used to bring these liquids to the surface. A set of valves known as a Christmas tree is fitted to the wellhead to control production.

21. Concession: State grant for the right to access a particular area for a specified period of time, and allowing certain rights for the hydrocarbons discovered to be transferred from the country in question to the concession company.

22. Condensate: Liquid present in natural gas produced from gas fields, which is separated and kept in a liquid state under normal pressure and temperature conditions.

23. Contingent resources: Quantities of oil, condensate and natural gas that are potentially recoverable from known fields, but which at present are not considered to be commercially recoverable due to one or more contingencies.

24. Crude oil: Oil which has yet to be processed at a refinery.

25. Deep water: Qater depths of 401-1,500 meters.

26. Discovery: Any find of petroleum, natural gas or other hydrocarbons, minerals and mineral reserves in a concession, regardless of quantity, quality or commercial prospects, which is confirmed by at least two detection or evaluation methods (as defined by the ANP concession agreement). To be considered commercial, a discovery must present positive market returns on an investment for its development and production.

27. Downstream: Activities involving the refining of crude oil, natural gas processing, transportation and oil marketing/distribution.

28. E&P: Exploration and Production.

29. EBITDA: Earnings before interest, taxes, depreciation and amortization expenses.

30. EPC: Engineering, Procurement and Construction. Describes a company or group of companies responsible for the implementation of the various phases of a project, involving materials procurement, contracting services and physical construction.

31. Exploration success rate: Number of exploratory wells where commercial oil and/or gas reserves are found in relation to the total number of exploratory wells drilled and evaluated over a specific period, typically one year.

32. Farm-in and farm-out: Process of partial or total acquisition of concession rights held by another company. The company that is acquiring the concession rights is in the process of a farmin, and the company that is selling the concession rights is in the process of a farm-out.

33. FOB: Freight (or free) on board, meaning that the seller pays for transportation of the goods.

34. Formation: Group of rocks or minerals that have specific similar characteristics of composition, age, origin or other properties.

35. FPSO: Floating Production Storage Offloading.

36. Friable sandstone: The friability of sandstone is directly related to the forces of compression, or the type of cementation and dissolution of the grains at the contact points. Cementation is the predominant factor in determining the consolidation of a sandstone. The most common cements are quartz, calcite (calcium carbonate) and dolomite (magnesium carbonate). The cementing agent reduces the porosity and permeability by filling the pores of the rock formations, so that confined environments with a low occurrence of cementing minerals will commonly result in high permeability reservoirs, which have a high potential for oil and sand production. The primary requirement for identifying friable sandstone is the definition of its geological deposition model, which allows us to choose the best technique for containing the sand from the reservoir being explored.

37. Fuel oil: A heavy fraction obtained from petroleum distillation. Widely used as industrial fuel in boilers, ovens etc.

38. Gas lift: A method used in various types of pumping to artificially lift the oil. The liquid is lifted by injecting a pressurized gas into the production column, through valves located close to the producing interval. The gas mixes with the oil which reduces the oil’s density and makes the reservoir pressure sufficient to lift the oil to the surface.

39. GCOS: Geological Chance of Success.

40. Gross contingent resources: Total contingent resources.

41. Ibama: Brazilian Institute of the Environment and Renewable Natural Resources.

42. IGP-DI (General Price Index): Calculated monthly by the Getulio Vargas Foundation, it is one of Brazil’s most widely used consumer price and inflation metrics.

43. In situ: Amount of oil or gas originally contained in place in any reservoir, before production.

44. Installed capacity: A project’s capacity, as authorized by the ANP.

45. Liquefied natural gas (LNG): Natural gas in a liquid state under a given surface pressure and temperature. Obtained in the field separation processes, in natural gas processing units or in pipeline transfer operations.

46. Liquefied petroleum gas (LPG): A mixture of high vapor pressure hydrocarbons which are separated from natural gas using special process units and stored a liquid state under special conditions on the surface.

47. MMm³/day: Millions of cubic meters per day.

48. Natural gas: Any hydrocarbon or mixture of hydrocarbons that remain in gaseous state in normal atmospheric conditions, extracted directly from oil or gas reservoirs, including wet, dry, residual and rare gases.

49. Net contingent resources: The company’s share of the contingent resources.

50. Non associated gas: Gas from reservoirs that contain little or no oil. Non associated gas from reservoirs that are not connected with any known source of liquid petroleum is known as dry gas.

51. Offshore: A location or operation on or under the sea.

52. Oil: The portion of existing oil in the liquid phase in the original conditions of the reservoir and which remains liquid in the conditions of temperature and pressure surface.

53. Onshore: A location or operation on or under the land.

54. OPEC: Organization of the Petroleum Exporting Countries. Its members are Algeria, Indonesia, Iran, Iraq, Kuwait, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela.

55. Operator: A company legally designated to direct and execute all operations and activities in a concession area, under the provisions of the agreement between the ANP and the concessionaire.

56. Petroleum: Any liquid hydrocarbon in its natural state, such as crude oil or condensate.

57. Possible reserves: Possible reserves are those additional reserves which analysis of geoscience and engineering data indicate the less probability to be recovered than probable reserves.

58. Probable reserves: Are the quantities of oil that, through analysis of geoscience and engineering data, estimate that have the same chance (50%/50%) to be reached or exceeded.

59. Prospective resources: The amount of technically and economically recoverable oil.

60. Proven reserves: Amount of oil or gas from known reservoirs which, after analysis of geological and engineering data, can be estimated with reasonable certainty of being commercially recoverable at a given date, under existing economic and political conditions and using existing technology.

61. PRMS: Petroleum Resources Management System.

62. Rating: Risk classification or evaluation.

63. Recoverable volume: Volume of oil, expressed in basic conditions, which can be obtained as a result of the production of a reservoir, from the initial conditions until its abandonment, through the best alternative indicated by the technical-economic studies performed until the time of evaluation.

64. Reserves: Amounts of oil or gas anticipated to be commercially recoverable through the implementation of development projects in known fields, at a given date and under specified conditions.

65. Reservoir: Sedimentary rocks in the subsurface with sufficient porosity and permeability to store and allow the flow of fluids/hydrocarbons contained in its pores.

66. Riser: Vertical conduit of a subsea oil well to transport oil or gas to a surface drilling facility.

67. Shallow water: Water depths of 400 meters or less.

68. Ultra-deep waters: Water depths of over 1,500 meters.