GLOSSARY OF TERMS

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

APA

Awards in Pre-defined Areas.  A system for awarding licenses in mature parts of the Norwegian continental shelf.

Abandonment

To cease work on a well which is non-productive, to plug off the well with cement plugs and salvage all recoverable equipment. Also used in the context of field abandonment.

Appraisal well

A well drilled as part of an appraisal drilling programme which is carried out to determine the physical extent, reserves and likely production rate of a field.

BLP

Bridge Linked Platform. A bridge that links two platforms together.

Block

A North Sea acreage sub-division measuring approximately 10 x 20 kms, forming part of a quadrant eg Block 9/13 is the 13th block in Quadrant 9.

Condensate

Hydrocarbons which are in the gaseous state under reservoir conditions and which become liquid when temperature or pressure is reduced.

DECC

Department of Energy and Climate Change. The UK government department responsible for energy policy.

Development well

A well drilled within the proved area of an oil or gas reservoir to the depth of a stratigraphic horizon known to be productive; a well drilled in a proven field for the purpose of completing the desired spacing pattern of production.

E&A

Abbreviation for exploration and appraisal.

E&P

Abbreviation for exploration and production. The ‘upstream’ sector of the oil and gas industry.

EGPC

Egyptian General Petroleum Corporation. The Egyptian Ministry of Petroleum-owned organisation that manages exploration and production operations in its affiliated joint venture companies.

Exploration well

Drilling carried out to determine whether hydrocarbons are present in a particular area or structure. Also known as a ‘wildcat well’.

FPAL

First Point Assessment Limited. A supplier management organisation for the UK, Dutch and Irish oil and gas industry. FPAL identifies, qualifies, evaluates and monitors suppliers on behalf of its members.

FPSO

Floating Production, Storage and Offloading vessel. Offshore production facilities that house both processing equipment and storage for produced hydrocarbons.

Farm in

When a company acquires an interest in a block by taking over all or part of the financial commitment for drilling an exploration well.

Field

A geographical area under which an oil or gas reservoir lies.

Hydrocarbon

A compound containing only the elements hydrogen and carbon. It may exist as a solid, a liquid or a gas. The term is mainly used in a catch-all sense for oil, gas and condensate.

HR

Human Resources. The discipline in an organisation that oversees a company’s people and talent.

HSSEQ

Health, Safety, Security, Environment and Quality.

IOD

Institute of Directors. The professional organisation that serves and supports business leaders.

IOSH

Institution of Occupational Safety and Health. The chartered body for health and safety professionals.

ITT

Invitation to Tender. The procedure for generating competing offers from different bidders looking to obtain an award of business activity in works, supply or service contracts.

KNOC

Korea National Oil Corporation. The state run oil company that carries out energy projects on behalf of the South Korean Government.

LTI

Lost Time Incident. Any work related injury or illness which prevents a person from working.

Licensing round

An occasion when a governmental body offers exploration acreage for leasing by exploration and production companies, typically in return for a fee and a performance or work obligation, such as acquisition of seismic data or drilling a well. Exploration licenses are initially of limited duration (about 5 years) after which there might be a requirement to return half or more of the licensed acreage to the state. If hydrocarbons are discovered, a separate production license or production-sharing agreement is usually drawn up before development can proceed.

NGO

Non-governmental organisation. A legally constituted organisation that operates independently of any government.

Operator

The company that has legal authority to drill wells and undertake production of hydrocarbons. The operator is often part of a consortium and acts on behalf of this consortium.

PESGB

Petroleum Exploration Society of Great Britain. A professional body for those in the Geoscience community.

PSC

Production Sharing Contract. An agreement between the parties to a well and a host country regarding the percentage of production each party will receive after the participating parties have recovered a specified amount of costs and expenses.

P2P

Purchase to Pay.  The business processes that cover activities of requesting (requisitioning), purchasing, receiving, paying for and accounting for goods and services.

Reservoir

The underground formation where oil and gas has accumulated. It consists of a porous rock to hold the oil or gas, and a cap rock that prevents its escape.

SME

Small and medium enterprise/business.

SPE

Society of Petroleum Engineers. The professional organisation for managers, engineers, scientists and other professionals in the upstream oil and gas industry.

Spud-in

The operation of drilling the first part of a new well.

TD

Total Depth. The planned end of a well, measured by the length of pipe required to reach the bottom.

UKCS

United Kingdom Continental Shelf. The region of waters surrounding the United Kingdom.