Espirito Santo Oil & Natural Gas Yearbook 2021

GLOSSARY GLOSSARY A Adjacent pioneer exploratory well: well used for test- ing the occurrence of oil or natural gas in an area adja- cent to a discovery. Area Return Notification: written communication is- sued by the Concession Holder to ANP relative to the return of areas, in the circumstances governed by the Contract, which contains the list of Reversible Assets existing in the portion to be returned and the outlining of the polygon of the areas to be retained. B Barrel of equivalent oil (boe): barrel of equivalent oil (1,000 m³ of gas ≈ 6.28981 bbl) - measure that sums the volumes of oil and gas production Barrel of oil per day (bpd): unit used to reference the daily production of barrels of oil. Bidding rounds: a process held by the ANP for the pur- pose of having an auction between companies and/or joint-ventures interested in acquiring exploratory areas on concession or sharing basis. Brent: oil extracted in the North Sea and traded on the London Stock Exchange, its quotation is an interna- tional reference for the price of oil. C Closed well: a completed well that has already started production or injection operations, but which is closed, awaiting normalization of surface conditions, addition- al studies for decision making, or intervention with a probe for reassessment, re-completion, restoration, abandonment, among other purposes. Concession Holder: a company incorporated under Brazilian law, with headquarters and management in Brazil, with which the ANP enters into a concession contract for the exploration and production of oil or natural gas in a sedimentary basin located in the na- tional territory. Concession: a modality of assignment of an econom- ic activity by the government, usually through a bidding process, to an economic agent that proves the capaci- ty to perform it, at its own risk and for a predetermined period. In Brazil, the administrative contract for the delegation is made by the ANP, which grants compa- nies the right to carry out exploration and production activities of oil and natural gas in the Brazilian territory. D Declaration of commerciality: written notice from the concession holder to the ANP declaring a deposit as a commercial discovery in the concession area. Declarations of hydrocarbon traces: the concession contracts set the terms and work programs for ex- ploration and production activities. Under these con- tracts, the concession holder is required to notify the ANP of any discovery of hydrocarbons or other mineral resources within the concession area within 72 hours after the occurrence. Decommissioning: a set of legal actions, techniques and engineering procedures applied in an integrated way to a Pipeline, for ensuring its decommissioning meets the conditions relative to safety, environmental preservation, reliability and traceability of information and documents. Deep water: oceanic waters located at any distance from the coast with a seabed depth of 300-1,500 me- ters. Deeper prospection exploratory well: well used for testing the occurrence of accumulations or deeper fa- vorable geological conditions in a given area. Destroyed well: permanently abandoned well in which all equipment related to the wellhead assembly was re- moved and the surface and the casing at the bottom of the preboring was cut. Development plan: the instrument for planning devel- opment and production, covering the entire life cycle of the oil field. It describes the activities and investments that will be made/carried out, whereby all other me- dium and short-term plans will have to be consistent with it. E Exploration phase: this phase has the goal of discov- ering and surveying oil and/or natural gas deposits. Ex- ploratory activities involve the acquisition of seismic, gravimetric, magnetometric, geochemical data, drill- ing, and evaluation of wells, among others, and which must comply with the Minimum Exploration Program (PEM) agreed with the ANP. Exploratory Block: geographically delimited areas re- ferring to a sedimentary basin, where oil and natural gas exploration activities are carried out. Exploratory extension well: a well used for limiting the accumulation of oil or natural gas and/or to investigate contact between fluids, communication between re- gions of a reservoir, and properties that allow charac- terizing it. Exploratory injection well: well used for injecting flu- ids into the reservoir to improve the recovery of hydro- carbons. Injecting well for storage: well operates as a fluid in- jector for the storage of natural gas. Injecting well: well operates as a fluid injector to im- prove the recovery of hydrocarbons from the reservoir. M Marginal fields: inactive areas in which there was no production of oil and/or natural gas or production was interrupted due to lack of economic interest. Mature Basin: sedimentary oil basin whose produc- tion is already in decline. Exploratory production well: well used for draining Mature fields: oil fields whose production is already one or more deposits from a field. Exploratory stratigraphic well: well used for learning the stratigraphic column and obtaining other surface's geological information in a basin or region that is little explored; F Federal Petroleum, Natural Gas and Biofuels Agency (ANP): regulatory body for the oil, natural gas, and bio- fuels markets in Brazil, except for regulation of natural gas distribution, which is governed on a state level. Financial Compensation: amount owed to States, Mu- nicipalities, and the Federal Government for the use of natural resources, since these entities are affected by the exploration and production activity. G Government Shares: payments to be made by the holders of concessions of oil and natural gas explora- tion and production activities, pursuant to Articles 45 to 51 of Law 9.478, of 1997, and of Decree 2.705, of 1998. H Hydrocarbon: A chemical compound composed sole- in decline. Minimum Exploratory Program (PEM): exploratory activities to be necessarily carried out by the conces- sion holder during the exploration phase, defined by the ANP, according to criteria for surveying the areas to be explored. Mining: a set of coordinated operations for extracting oil or natural gas from a deposit and preparing for its handling/transportation. 0 Offshore: maritime environment and land-sea transi- tion zone or area located in the sea. Oil byproducts: products resulting from the transfor- mation of petroleum. Oil fields: area producing oil or natural gas, from a con- tinuous reservoir or more than one reservoir, at vari- able depths, encompassing installations and equip- ment intended for production. (Source: Law 9.478, of 8/6/1997. Oil production chain: a group of activities in the pro- duction chain, from the extraction of crude oil to the last phase of adding value in the sector, segmented into four branches: exploration, refining, petrochemical ly by carbon and hydrogen atoms. Oil and natural gas industry, and transformation industry. are examples of hydrocarbons. Oil Production: a set of coordinated operations for ex- tracting oil or natural gas from a deposit and preparing its handling, according to the definitions outlined in