Glossary

Barrel of oil equivalent (Boe): Unit used to convert a volume of natural gas into an equivalent volume of oil, based on the energy equivalence between oil and gas, measured by the calorific value of the fluids. > As a general rule, the following approximation is used: 1,000 m³ of gas is equivalent to 1 m³ of oil. (Source: Portuguese Language Oil Dictionary)

Barrel of oil or bbl: A depression in the Earth's crust where sedimentary rocks accumulate, potentially containing oil or gas, whether associated or not. (Source: Law No. 9,478/1997)

Basin: Standard unit of liquid volume measurement in the oil industry. ? 1 barrel = 158.98 liters. (Source: Portuguese Language Oil Dictionary)

Block(s): Portion of a sedimentary basin, defined as a vertical prism of indeterminate depth, with a polygonal surface outlined by the geographic coordinates of its vertices, where oil and natural gas exploration or production activities are carried out. (Source: Portuguese Language Oil Dictionary)

Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP): The Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP) was established by Law No. 9,478 of August 6, 1997. It is a special regulatory agency linked to the Ministry of Mines and Energy, responsible for regulating, contracting, and overseeing the economic activities of the petroleum, natural gas, and biofuels industries. (Source: Law No. 9,478/1997)

Brent: Blend of crude oils produced in the North Sea, originating from the Brent and Ninian petroleum systems, with an API gravity of 39.4 and a sulfur content of 0.34%. (Source: Portuguese Language Oil Dictionary)

Concession: A concession is a form of delegation of an economic activity by the government, generally through a competitive bidding process, to an economic agent that demonstrates the capacity to perform it at its own risk and for a defined period. In Brazil, the administrative contract for such delegation is granted by the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP), which authorizes companies to carry out oil and natural gas exploration and production activities within Brazilian territory. (Source: Portuguese Language Oil Dictionary)

Condensate: Liquid fraction of natural gas obtained during the primary field separation process, which remains in the liquid phase under the pressure and temperature conditions of separation. (Source: ANP Resolution No. 852/2021)

Contracted area: Area covered by the contract for the exploration and production of oil and natural gas. (Source: ANP Resolution No. 889/2022)

Crude oil: Viscous natural liquid, whose color ranges from green to brown to black, composed of a mixture of hydrocarbons (including paraffins, unsaturated hydrocarbons, naphthenes, and aromatics) and small amounts of oxygen, nitrogen, and sulfur compounds. (Source: dicionariopetroleoegas.com.br/dictionary/upstream/)

Declaration of commerciality: Notification submitted at the sole discretion of the concessionaire to the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP), declaring the commercial viability of one or more discoveries within the concession area and, consequently, confirming the intention to develop them. > Marks the end of the exploration phase and the beginning of the production development phase. (Source: Portuguese Language Oil Dictionary)

Discovery: Any occurrence of oil, natural gas, other hydrocarbons, minerals, or, in general, any other natural resources within the concession area, regardless of quantity, quality, or commerciality, verified by at least two detection or evaluation methods. (Source: Portuguese Language Oil Dictionary)

Downstream: Term used to describe activities related to crude oil refining, natural gas processing in gasoline plants, and the transportation, marketing, and distribution of petroleum products. (Source: Portuguese Language Oil Dictionary)

E&P: Set of operations aimed at the exploration and production of oil and/or natural gas. (Source: Portuguese Language Oil Dictionary)

Economic and financial feasibility analysis: Analysis that includes projections of revenues, costs, expenses, and investments, as well as key indicators such as net present value (NPV), internal rate of return (IRR), and payback period, highlighting the underlying assumptions. (Source: ANP Resolution No. 852/2021)

Farm-in: Process involving the partial or full acquisition of concession rights held by another company. (Source: Portuguese Language Oil Dictionary)

Farm-out: Process involving the partial or full sale of concession rights. (Source: Portuguese Language Oil Dictionary)

Field decommissioning: Set of operations that comprises the permanent abandonment of wells, deactivation of production facilities, and environmental restoration of the areas previously occupied by such facilities. (Source: Portuguese Language Oil Dictionary)

Free consumir: Natural gas consumer who, under applicable state legislation, has the option to purchase natural gas from any producer, importer, or marketer. (Source: ANP Resolution No. 51/2011)

Hydrocarbon: Compound composed exclusively of carbon and hydrogen. (Source: Portuguese Language Oil Dictionary)

In situ: Estimated volume of oil present in the reservoir, expressed under so-called standard or basic conditions. (Source: Portuguese Language Oil Dictionary)

Integrity assessment: Systematic process based on pipeline inspection, evaluation of inspection indications, physical examination of the pipeline using various techniques, assessment of the examination results, characterization of identified defects by severity and type, and verification of the pipeline's integrity through structural analysis. (Source: ANP Resolution No. 6/2011)

Mature fields: Oil or natural gas producing fields whose production profile is in its final decline stage, approaching the decommissioning phase. (Source: Portuguese Language Oil Dictionary)

Midstream: Segment encompassing the activities of transfer, transportation, and storage of oil or natural gas. (Source: Portuguese Language Oil Dictionary)

Natural gas: Any hydrocarbon that remains in a gaseous state under normal atmospheric conditions, extracted directly from oil or gas reservoirs, including wet, dry, residual, and rare gases. (Source: ANP Resolution No. 41/2013)

Natural gas conditioning: Containment of natural gas in gaseous, liquid, or solid form for transportation or consumption purposes. (Source: Joint Resolution ANP/Inmetro No. 1/2013)

Natural gas liquid (NGL): Mixture of hydrocarbons with two or more carbon atoms that behaves as a gas in the reservoir but can be recovered as a liquid through condensation and absorption during natural gas processing (Gas Processing Unit - UPGN). (Source: Portuguese Language Oil Dictionary)

Offshore: Exploration, drilling, and production activities carried out at sea, off the coast. (Source: Portuguese Language Oil Dictionary)

Oil or natural gas field: Area that produces oil or natural gas from a continuous reservoir or from multiple reservoirs, at varying depths, including facilities and equipment intended for production. (Source: Law No. 9,478/1997)

Oil refinary: An industrial facility that uses crude oil—sourced from a field's extraction and production unit—as raw material and, through processes including heating, fractionation, pressure, vacuum, and reheating in the presence of catalysts, produces petroleum derivatives ranging from the lightest (refinery gas, LPG, naphtha) to the heaviest (bunker fuel, fuel oil), as well as solid fractions such as coke and asphalt residue. (Source: ANP Resolution No. 852/2021)

Operador: Legal entity, or consortium of legal entities, authorized by the ANP to operate the terminal and provide handling services for regulated products at the facility. (Source: ANP Resolution No. 881/2022)

Probable reserves: Oil and natural gas reserves for which the analysis of geological and engineering data indicates greater uncertainty in recoverability compared to proven reserves, but greater certainty when compared to possible reserves. (Source: Portuguese Language Oil Dictionary)

Proven and probable reserves (2P Reserves): Sum of proven reserves and probable reserves.

Proven reserves (1P Reserves): Proven oil and natural gas reserves are volumes from discovered and evaluated reservoirs that, based on geological and engineering data analysis, can be estimated with reasonable certainty as commercially recoverable from a given date, under defined economic conditions, operational methods, and regulatory requirements applicable to oil and gas exploitation activities. (Source: Portuguese Language Oil Dictionary)

Reservoir: Geological formation with specific properties capable of storing oil or gas, whether associated or not. (Source: Law No. 9,478, dated 08/06/1997)

Risk assessment: Analytical and systematic process in which potential hazards related to pipeline operations are identified, and the likelihood and consequences of potentially adverse events are determined. Depending on the operator's objectives, risk assessments may vary in scope and be conducted at different levels of detail. (Source: ANP Resolution No. 6/2011)

Upstream: In the oil industry, the segment of the value chain that precedes refining, encompassing exploration, development, production, and transportation activities for processing.

Well abandonment: Set of operations aimed at isolating fluid-bearing formations through the placement of cement plugs, removing surface equipment, and restoring the well site. (Source: Portuguese Language Oil Dictionary)

WTI (West Texas Intermediate WTI): Type of crude oil used as a commercial benchmark, originating from the Permian Basin in West Texas, USA, with an API gravity between 38 and 40 and a sulfur content of 0.3%. (Source: Portuguese Language Oil Dictionary)