Glossary
This glossary contains explanations and definitions of certain terms used in connection with our business. The terms and their assigned meaning may not correspond to standard industry or common meaning or usage of these terms.
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- 1C: Low estimate scenario of contingent resources.
- 1P: Equivalent to proved reserves; denotes low estimate scenario of reserves.
- 2C: Best estimate scenario of contingent resources.
- 2D seismic data: Geophysical data that depicts the subsurface strata in two dimensions (2D).
- 2P: Equivalent to proved plus probable reserves; denotes best estimate scenario of reserves.
- 3C: High estimate scenario of contingent resources.
- 3D seismic data: Geophysical data that depicts the subsurface strata in three dimensions (3D). 3D seismic typically provides a more detailed and accurate interpretation of the subsurface strata than 2D seismic.
- 3P: Equivalent to proved plus probable plus possible reserves; denotes high estimate scenario of reserves.
- AFE: Authorisation for expenditure.
- appraisal well: A well drilled to evaluate the quality of a hydrocarbon discovery.
- basin: Areas where sedimentary rocks have accumulated over time, which are regarded as good prospects for oil and gas exploration.
- bbl: Barrel.
- bcf: Billion cubic feet.
- Block 105: Block 105-110/04.
- boe: Barrel(s) of oil equivalent.
- boepd: Barrel(s) of oil equivalent per day.
- bopd: Barrel(s) of oil per day.
- CALM buoy: Catenary anchor leg mooring buoy.
- commercial: When a project is commercial, it implies that the essential social, environmental and economic conditions are met, including political, legal, regulatory and contracted conditions. In addition, a project is commercial if the degree of commitment is such that the accumulation is expected to be developed and placed on production within a reasonable time frame.
- condensate: A mixture of liquid hydrocarbons that exist in the gaseous phase at original reservoir temperature and pressure, but when the gas is produced and processed through the dew point, are in the liquid phase at surface temperature and pressure conditions.
- contingent resources: Those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations by application of development projects, but are not currently considered to be commercially recoverable due to one or more contingencies.
- contract area: A specified geographic area that is the subject of an agreement with the host government pursuant to which an operator and its partners provide financing and technical expertise to conduct exploration, development and production operations.
- CSR: Corporate Social Responsibility.
- DDA: Depreciation, depletion and amortisation.
- development pending: The project is seen to have reasonable potential for eventual commercial development, to the extent that further data acquisition (e.g., drilling, seismic data) and/or evaluations are currently ongoing with a view to confirming that the project is commercially viable and providing a basis for selection of an appropriate development plan. The critical contingencies have been identified and are reasonably expected to be resolved within a reasonable timeframe. Disappointing appraisal/evaluation results could lead to a re-classification of the project to “On Hold” or “Not Viable” status.
- development unclarified: A discovered accumulation where project activities are on hold and/or where justification as a commercial development may be subject to significant delay. The project is seen to have potential for eventual commercial development, but further appraisal/evaluation are on hold pending the removal of significant contingencies external to the project, or substantial further appraisal and/or evaluation activities are required to clarify the potential for eventual commercial development. Development may be subject to significant time delay.
- development well: A well drilled to obtain production from a proven oil or gas field.
- discovery: One petroleum accumulation, or several petroleum accumulations collectively, for which one or several exploration wells have established through testing, sampling, and/or logging the existence of a significant quantity of potentially movable hydrocarbons. In this context, “significant” implies that there is evidence of a sufficient quantity of petroleum to justify estimating the in place volume demonstrated by the well(s) and for evaluating the potential for economic recovery.
- DST: Drill stem test.
- E&P: Exploration and production.
- EBITDAX: Earnings before interest, taxation, depreciation, amortisation, geological and geophysical expenses and exploration expenses. EBITDAX is a non-IFRS measure.
- EHSMS: Environment, Health and Safety Management System.
- EHSS: Environment, Health, Safety & Security.
- EIA: Environmental Impact Assessment.
- EPCIC: Engineering, procurement, construction, installation and commissioning.
- exploration well: A well drilled to find hydrocarbons in an unproved area or to extend significantly a known oil or gas reservoir.
- farm-in/farm-out: Process where the owner of an interest in a contract area invites third parties to participate in and assume some of the risks of developing the contract area.
- field: An area consisting of a single reservoir or multiple reservoirs all grouped on, or related to, the same individual geological structure feature and/or stratigraphic condition.
- FID: Final investment decision. The decision by a joint venture to commence development of the relevant field pursuant to the relevant approved PAA, PPA or POD, as the case may be.
- FSO: Floating storage and offshore loading vessel.
- FWHP: Flowing well head pressure.
- geology: The scientific study of the origin, history and structure of the Earth (adj. geological).
- geophysics: Matters concerning the physics of the Earth and its environment, including the physics of fields such as meteorology, oceanography and seismology. In oil and gas exploration, this refers to geophysical methods of imaging the subsurface such as gravity, magnetic and seismic (adj. geophysical). gross reserves: The total volume of oil and/or gas anticipated to be commercially produced in the future.
- hydrocarbons: A compound made up of hydrogen and carbon, which are the chief components of petroleum and natural gas.
- IPO: Initial public offering.
- IOC: International oil company.
- jack-up rig: A type of mobile platform that consists of a buoyant hull fitted with a number of movable legs, capable of raising its hull over the surface of the sea.
- JOA: Joint operating agreement.
- JSA: Joint study agreement.
- km: Kilometre.
- leads: A project associated with a potential accumulation that is currently poorly defined and requires more data acquisition and/or evaluation in order to be classified as a prospect.
- lifting costs: Costs to operate and maintain oil and gas wells and related equipment, and facilities to bring oil and gas to the surface.
- mcf: Thousand cubic feet.
- MD: Measured depth.
- mmbo: Million barrels of oil.
- mmboe: Million barrels of oil equivalent.
- mmbtu: Million British thermal units.
- mmcf: Million cubic feet.
- mmcfd: Million cubic feet per day.
- MOPU: Mobile offshore production unit.
- MTN: Medium Term Note (MTN) Program.
- NSAI: Netherland, Sewell & Associates, Inc.
- NOC: National oil company.
- PAA: Production Area Application.
- petroleum system: Refers to geological components and processes necessary to generate and store hydrocarbons, including a mature source rock, migration pathway, reservoir rock, trap and seal. Appropriate relative timing of formation of these elements and the processes of generation, migration and accumulation are also necessary for hydrocarbons to accumulate and be preserved.
- platform: A large structure with facilities to drill wells, to extract and process oil and natural gas, and to temporarily store product until it can be brought to shore for refining and marketing. In many cases, the platform contains staff accommodation as well.
- play: A project associated with a prospective trend of potential prospects, but which requires more data acquisition and/or evaluation in order to define specific leads or prospects.
- POD: Plan of development, which is a plan that describes development and production activities proposed by the operator of a contract area. The description includes the timing of these activities, information concerning drilling vessels, the location of each proposed well or production platform or any other structures.
- possible reserves: Those additional reserves which analysis of geoscience and engineering data indicate are less likely to be recoverable than probable reserves.
- PPA: Production Permit Application.
- probable reserves: Those additional reserves which analysis of geoscience and engineering data indicate are less likely to be recoverable than proved reserves but more certain to be recovered than possible reserves.
- prospect: A project associated with a potential accumulation that is sufficiently well defined to represent a viable exploration drilling target.
- prospective resources: Those quantities of petroleum which are estimated, as of a given date, to be potentially recoverable from undiscovered accumulations.
- proved reserves: Those quantities of petroleum, which by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under defined economic conditions, operating methods and government regulations.
- PSC: Production sharing contract, which is an agreement with the relevant host government, which outlines the fiscal terms for exploring, developing and producing oil and gas within a specified contract area.
- psig: Pounds per square inch.
- realised oil/gas price: The price for which oil or gas is sold.
- reserves: Those quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions.
- reservoir rock: A permeable rock formation where hydrocarbons migrate to and are held underground.
- resources: All quantities of petroleum (recoverable and unrecoverable) naturally occurring on or within the Earth’s crust, discovered and undiscovered, plus those quantities already produced.
- RCF: Revolving Credit Facility.
- SGX-ST: Singapore Exchange Securities Trading Limited.
- seal or cap rock: A formation with low permeability that impedes the escape of hydrocarbons from the reservoir rock.
- source rock: Rocks from which hydrocarbons have been generated or are capable of being generated. They form one of the necessary elements of a working petroleum system.
- spud: Commence drilling of a well.
- sq. km: Square kilometre.
- TAC: Technical Assistance Contract.
- tcf: Trillion cubic feet.
- tertiary basin: A depocentre filled with sediments of Paleogene and Neogene Age, deposited between 65 million and 1.8 million years ago.
- TVDSS: Total vertical depth subsea.
- work program: An annual budget program that defines the seismic, well drilling and facilities construction plans.
- working interest: Percentage ownership in a joint operation associated with revenue and costs. Working interests do not take into account the terms of any royalties, government shares of production, or similar fiscal terms, and thus do not reflect net entitlement to any oil or gas produced.