Espirito Santo Oil & Natural Gas Yearbook 2021

GLOSSÁRIO item XVI of art. 6 of Law 9.478 of 1997, or even the vol- ume of oil or natural gas extracted during production, as one may see in the text, as applicable. Oil refinement: activity carried out by an industrial unit that uses as raw material the oil originated from an extraction and production unit of a field and which, through processes including heating, fractioning, pres- sure, vacuum, and reheating in the presence of cata- lysts, creates oil byproducts from the lightest ones (refinery gas, LNG, Petroleum Nafta) to heavier ones (bunker, fuel oil), in addition to solid fractions, such as petroleum coke and asphalt residue. Oil Well: drilling on the surface used for producing oil and/or natural gas. Oil: any and all liquid hydrocarbons in their natural state, such as crude oil and condensate, whose ex- ploration and production is governed by Law 9,478, of 8/6/1997. Onerous assignment: a model of assignment of an exploratory area to Petrobras - bilateral negotiation, in consideration for payment of a certain amount, which was regulated by Law 12,276, of June 30, 2010, limiting exploration to up to 5 billion boe. Onshore: terrestrial environment or area located on- shore. P Payment for area occupation or retention: amount paid by concession holders to land owners where oil and natural gas exploration and production activities are carried out. This payment is made in two ways: (i) on an annual basis, through unitary amounts in Reais per square kilometer of the concession area outliner in the Bidding Regulations and the contract, succes- sively applicable to the exploration, development, and production phases. The determination of this amount is made by the ANP and takes into account the geolog- ical characteristics and the location of the sedimen- tary basin; (ii) on a monthly basis, by multiplying the equivalent of 1% of the total volume of oil and natural gas production in the field, during the reference month by their respective reference prices. Permanent offer: continuous offer of fields returned (or in the process of being returned) and exploratory blocks offered in previous bids and not auctioned or returned to the agency (Article 4 of CNPE Resolution 17, 06/08/2017). Permanently abandoned well: well for which there is no interest in future resumption and operations were carried out to establish redundant sets of permanent barriers. Petroleum Coke: fuel derived from coal agglomeration and consisting of mineral matter and carbon fused. It is a solid and cohesive residue left over from the de- structive distillation of coal, oil, or other carbonaceous residues and contains mainly carbon. Petroleum consumption: an activity that consists of the use of crude petroleum oil to manufacture petro- leum products. Pioneer exploratory well: well used for testing the oc- currence of oil or natural gas in one or more objectives of a geological prospect not yet drilled. Pre-salt layer: a subsoil region formed by a vertical prism of undetermined depth, with a polygonal surface defined by the geographic coordinates of its vertices detailed in the Appendix of Law 12.351/2010, as well as other regions that may be outlined by the Execu- tive Branch, according to the evolution of geological knowledge. Producing well: well operating as a hydrocarbon producer. Production Sharing: oil and natural gas exploration and production model, which provides not only the payment of royalties, but also the physical division of hydrocarbon production, discounting the cost incurred in exploration and production activities. It is currently governed by Law 12,351, of 12/22/2010. Production stage: The stage where the accumu- lations of oil and/or natural gas are discovered and which have had their commercial viability proven and originate in a producing field, developed, and put into production to supply the market. Production Unit (Exploration and Production): a group of facilities intended to promote the separation, treatment, storage and flow of fluids produced and moved in an oil, and natural gas field. Proven reserves: A quantity of Oil or Natural Gas that the analysis of geoscience data and engineering indi- cates with reasonable certainty that it is an economi- cally viable well, and for which investments are com- mercially recoverable. لل R Repetro-Eligible: goods under a special export and im- port customs regime, which are intended for research activities and mining of oil and natural gas deposits, with a suspension of customs duties. Returned fields: area returned to the ANP through the Area Return Notice. The act of returning the field im- plies the interruption of all exploration activities on the returned portion, except for the activities concerning the decommissioning of facilities and environmental recovery. Royalties: a financial compensation owed to the Fed- eral Government, States, and Municipalities, by the holders of concessions for exploration and production of oil or natural gas to be paid on a monthly basis ac- cording to the volume of production in the month, in a given field, right from the start of production; S Sedimentary Basin: depression of the earth's crust where sedimentary rocks accumulate and which may store oil or gas, whether or not associated. Shallow waters: oceanic waters located at any distance from the coast with a seabed depth of 0-300 meters. Shallower prospection exploratory well: well used for testing the occurrence of accumulations or shallower favorable geological conditions in a given area Signing bonus: resources offered by the winning bid- der in the proposal to obtain the oil or natural gas ex- ploration concession, which cannot be lower than the minimum value set in the Bidding Notice/Regulations. Part of these resources are destined for the Federal Government and another part for the ANP; Special Share: this is an extraordinary financial com- pensation owed to the Federal Government, States, and Municipalities, following ANP Resolution 12/2014 by holders of concessions for exploration and produc- tion of oil or natural gas, in cases of large production volume or high profitability. Special well: well used for specific objectives that do not fit the previously defined purposes. Storage Well: well intended to allow natural gas stor- age operations, including injection, withdrawal, and monitoring. T Temporarily abandoned well with monitoring: well which there is interest in future resumption of opera- tions and for which work has been carried out to estab- lish redundant sets of barriers, which must be periodi- cally monitored and/or verified. Ultra-deep waters: oceanic waters located at any dis- tance from the coast with a seabed depth greater than 1,500 meters. Upstream: a segment of the petroleum industry that includes the activities of exploration, development, production, and transportation of oil to refineries. W Well operating for disposal: a well operating for dis- posal of fluids produced by other wells or disposal of various effluents generated in exploration and produc- tion activities, in areas that do not produce at that time. Well producing and injecting: well operating simulta- neously producing hydrocarbons and injecting fluids (at different intervals). Well temporarily abandoned without monitoring: well which there is interest in the future resumption of op- erations and for which work has been carried out to establish joint sets of barriers not monitored and/or verified. Well under observation: instrumented well used for monitoring pressures in a reservoir producing hydro- carbons or storing natural gas. Well withdrawing stored natural gas: well operating to withdraw natural gas from a storage reservoir. WTI (West Texas Intermediate): oil extracted from the Permiano Basin, in West Texas and East of New Mexi- co, traded on the New York Stock Exchange. Its quote serves as an international reference for the price of oil.