1P or proven reserves | Amount of oil which, after analysis of geo-scientific and engineering data, can be estimated with reasonable certainty of being commercially recoverable at a given date, in known reserves and pursuant to government standards, operational methods and certain economic conditions.
2C | Estimate of contingent resources with equal chances (50%/50%) of being reached or exceeded.
3C | High estimate of contingent resources to reflect a degree of uncertainty.
3P | The sum of proven, probable and possible reserves, equaling the highest estimate scenario.
Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP) | Brazil’s regulatory agency for the oil and natural gas sector.
Deep waters | Water depth of 401 to 1,500 meters.
Shallow waters | Water depth of 400 meters or less.
Ultra-deep waters | Water depth of over 1,501 meters.
API | Manner of expressing the relative density of an oil or derivative. The API scale, measured in degrees, varies inversely to relative density, that is, the greater the relative density, the lower the API degree. The API degree is higher when the oil is lighter. Oils with an API degree over 30 are considered light; oils with an API degree between 22 and 30 is medium; oils with an API degree under 22 are heavy; oils with an API degree equal to or lesser than 10 are extra heavy. The greater the API degree, the higher price of the oil on the market. Water depth of 401 to 1,500 meters.
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 cementing agents are quartz, calcite (calcium carbonate) and dolomite (magnesium carbonate). If we consider that the cementing agent reduces the porosity and permeability by filling the pores of the rock, we can deduct that formations confined to environments with a low occurrence of cementing minerals will commonly result in high permeability reservoirs that, on the one hand, have a high potential for oil production, but also have a high potential for sand production Cohesion is a feature of a producing formation to stay intact when subjected to the pressure and discharge conditions used in production. The greater the cohesion of a formation, the greater the consolidation; therefore, permeability is lower. The primary requirement for identifying friable sandstone is the definition of its geological deposition model. With this known, the best technique can be chosen for containing the sand in the reservoir being assessed.
Basin | Depression in the earth’s crust where sedimentary rocks accumulate, which may be oil and/or gas bearing, associated or unassociated.
Barrel of oil equivalent | Barrels of oil equivalent per day.
Barrel of oil or bbl | One stock tank barrel, the standard measure of oil volume, corresponds to around 159 liters.
Bbl/day | Barrels per day. Manner of expressing the relative density of an oil or derivative.
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 are developed.
Boe (barrel oil equivalent) | Measurement of volume of gas converted to barrels of oil using a conversion factor wherein 1,000 m3 of gas is equal to 1 3 of oil/condensate (energy equivalent) and 1 3 of oil/condensate equal to 6.29 barrels.
Bpd | Barrels per day.
Brent dated | Published daily by Platt’s 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.
Boed field | Area which includes the horizontal projection of one or more reserves containing oil and/or natural gas in commercial quantities.
Installed capacity | Project capacity of a unit, authorized by the ANP.
CCOS | Commercial Chance of Success.
Completion of wells | After completing a well for production the hole is lined with steel pipes. A layer of cement is placed around it to prevent undesired fluids from penetrating and collapse of its walls. The following operation is the cannonade: a special bit is lowered through the inside of the coating which is activated from the surface, making holes in the steel and cement, making openings in the oil or gas bearing areas and allowing these fluids to flow into the inside of the well. Another smaller diameter pipe (the production column) is introduced into the well to bring these liquids to the surface. A set of valves known as a Christmas tree is fitted to the wellhead to control production. Area which includes the horizontal projection of one or more reserves containing oil and/or natural gas in commercial quantities.
Concession | Government grant to access a certain area for a certain period of time, through which certain rights to any hydrocarbons discovered are transferred from the country to the concessionaire.
Condensate | Liquid from natural gas obtained in the process of normal separation in the field, which is kept in a liquid state under normal pressure and temperature conditions.
Discovery | According to the Oil Act (Lei do Petróleo), it is any occurrence of oil, natural gas or other hydrocarbons, minerals and, in general terms, mineral reserves located in a concession, regardless of quantity, quality or commercial prospects, confirmed by at least two methods of detection or evaluation (as defined by the ANP concession agreement). To be considered commercially viable, a discovery must present positive returns on an investment in market conditions for its development and production.
Downstream | Activities involving the refining of crude oil, natural gas processing, transportation and sale/distribution of derivatives.
E&P | Exploration and Production.
EBITDA | Earnings before interest, taxes, depreciation & amortization expenses.
EPC (Engineering, Procurement and Construction) | Company or set of companies responsible for executing the project phases, acquiring material, and contracting services, aimed at constructing a certain work.
Farm-in and farm-out | Process of partial or total acquisition of concession rights held by another company. In the same negotiation, the company that is acquiring the concession rights is in the process of a farm-in, and the company that is selling the concession rights is in the process of a farm-out.
FOB (free on board) | Sale price of goods plus all export expenses until reaching the market.
Formation | Set of rocks or minerals that have unique characteristics, in relation to their composition, age, origin or other similar properties.
FPSO | Floating Production Storage Offloading.
Associated gas | Natural gas produced along with oil.
Gas lift | A method of artificially lifting oil, such as various kinds of pumping. It consists of injecting pressurized gas into the producing column using valves located near the producing interval. The gas is mixed with the oil, lowering its average density and causing the pressure in the reservoir to be sufficient to raise the oil to the surface.
Liquefied petroleum gas (LPG) | A mixture of high vapor pressure hydrocarbons, obtained from natural gas in special process units, which are stored in a liquid state under special conditions on the surface.
Non-associated gas | Free gas in the reservoir or present in small amounts of oil.
Natural gas | Any hydrocarbon or mixture of hydrocarbons that remain in gaseous state under normal atmospheric conditions, extracted directly from oil or gas reservoirs, including wet, dry, residual and rare gases.
GCOS | Geological Chance of Success.
Ibama | Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renováveis (Brazilian Institute of the Environment and Renewable Natural Resources.
IGP-DI (General Price Index) | Domestic Availability Concept, calculated monthly by Fundação Getulio Vargas. It is one of the indicators of prices used in the national economy.
In situ | Volume originally contained in the reservoir prior to any oil or natural gas production.
Exploration success rate | Number of exploratory wells where commercial oil and/or gas are found in relation to the total number of exploratory wells drilled and evaluated in the current year.
Liquefied natural gas (LNG) | Part of the natural gas that is found in the liquid phase under a certain condition of pressure and temperature at the surface obtained in field separation processes, at natural gas processing units or in gas pipeline transfer operations.
MMm3/day | Millions of m3 per day.
Offshore | Located or operated at sea.
Fuel oil | Heavy fractions from atmospheric oil distillation. Widely used as industrial fuel in boilers, ovens, etc.
Oil | Portion of existing oil in the liquid phase under the original conditions of the reservoir and which remains liquid in the temperature and pressure conditions at the surface.
Onshore | Located or operated on land.
Operator | Company legally designated to conduct and execute all operations and activities in the concession area, according to the terms of the concession contract executed by and between ANP and the concessionaire.
2P Reserves | The sum of proven and probable reserves.
Probable reserves | Amount of oil which, after analysis of geo-scientific and engineering data, is estimated to have the same chance (50%/50%) of being reached or exceeded.
