Glossary

Amount of oil which, after analysis of geo-scientific and engineering data, can be estimated with reasonable certainty of being commercially recoverable at a given date, in known reserves and pursuant to government standards, operational methods and certain economic conditions.

Estimate of contingent resources with equal chances (50%/50%) of being reached or exceeded.

The sum of proven and probable reserves.

High estimate of contingent resources to reflect a degree of uncertainty.

The sum of proven, probable, and possible reserves, equaling the highest estimate scenario.

The regulatory body of the oil and natural gas sector in Brazil. API – American Petroleum Institute.

An expression of the relative density of an oil or derivative. The API scale, measured in degrees, varies inversely with the relative density, that is, the higher the relative density, the lower the API scale. The API scale is higher when oil is lighter. Oils with API scales greater than 30 are considered light; between 22 and 30 are considered average; below 22 are considered heavy and oils with API scales equal to or less than 10 are considered extra-heavy oils.

Depression in the earth’s crust where sedimentary rocks accumulate, which may be oil and/or gas bearing, associated or unassociated.

Barrel, equivalent to 0.159 m3.

Barrel per day

A small location in a sedimentary basin where oil and natural gas exploration and production activities are carried out.

The acronym for Barrels of Oil Equivalent. Typically used to express oil and natural gas volumes in the same measurement unit (barrels) by converting 1,000 m3 of gas to 1 m3 of oil. 1 m3 of oil = 6.289941 barrels of oil.

Barrels of Oil Equivalent Per Day.

A mixture of oils produced in the North Sea, from the Brent and Ninian oil systems, with an API grade of 39.4º and a sulfur content of 0.34%.

When wells are completed for production, they must receive a steel tube coating.

Government grant to access a certain area for a certain period of time, through which certain rights to any hydrocarbons discovered are transferred from the country to the concessionaire.

A liquid obtained in the standard natural gas field separation process that is kept in a liquid phase under normal pressure and temperature conditions.

Water depth of 401 to 1,500 meters.

According to the Oil Act (Lei do Petróleo), it is any occurrence of oil, natural gas or other hydrocarbons, minerals and, in general terms, mineral reserves located in a concession, regardless of quantity, quality or commercial prospects, confirmed by at least two methods of detection or evaluation (as defined by the ANP concession agreement). To be considered commercially viable, a discovery must present positive returns on an investment in market conditions for its development and production

Activities involving the refining of crude oil, natural gas processing, transportation and sale/distribution of derivatives

Exploration and Production.

Earnings before interest, taxes, depreciation & amortization expenses.

The number of exploratory wells with commercial oil and/or gas in relation to the total number of exploratory wells drilled and assessed in the current year.

Process of partial or total acquisition of concession rights held by another company. In the same negotiation, the company that is acquiring the concession rights is in the process of a farm-in, and the company that is selling the concession rights is in the process of a farm-out.

Sale price of goods plus all export expenses until reaching the market.

A floating, production, storage and offloading oil unit built on a vessel.

Heavy fractions from atmospheric oil distillation. Widely used as industrial fuel in boilers, ovens, etc.

Natural gas produced along with oil.

A method of artificially lifting oil, such as various kinds of pumping. It consists of injecting pressurized gas into the producing column using valves located near the producing interval. The gas is mixed with the oil, lowering its average density and causing the pressure in the reservoir to be sufficient to raise the oil to the surface.

Project capacity of a unit, authorized by the ANP.

Brazilian Institute of the Environment and Renewable Natural Resources.

Volume originally contained in the reservoir prior to any oil or natural gas production.

Part of the natural gas that is found in the liquid phase under a certain condition of pressure and temperature at the surface obtained in field separation processes, at natural gas processing units or in gas pipeline transfer operations.

Millions of m3 per day.

Any hydrocarbon or mixture of hydrocarbons that remain in gaseous state under normal atmospheric conditions, extracted directly from oil or gas reservoirs, including wet, dry, residual and rare gases.

Located or operated at sea.

Portion of existing oil in the liquid phase under the original conditions of the reservoir and which remains liquid in the temperature and pressure conditions at the surface

Located or operated on land.

Company legally designated to conduct and execute all operations and activities in the concession area, according to the terms of the concession contract executed by and between ANP and the concessionaire.

Pre-salt is a sequence of sedimentary rocks formed over 100 million years ago in the geographical area created from the separation of the ancient Gondwana continent. More specifically, with the separation of the current American and African continents, which began nearly 150 million years ago. Great depressions were initially formed between these two continents, creating large lakes. In these areas, throughout millions of years, pre-salt oil-generating rocks were deposited. As all rivers on these separated continents flowed into lower regions, large volumes of organic matter were deposited. And, as the continents shifted, the organic material accumulating in this new area was being covered by the waters of the also newly formed Atlantic Ocean. Thus, a layer of salt began to form, which is currently up to 2 thousand meters thick. This layer of salt was deposited on the accumulated organic matter and was retained during millions of years, until thermochemical processes transformed it into hydrocarbons (oil and natural gas). The discoveries in the pre-salt area are among the most important in the entire world over the last decade. The pre-salt province is comprised of large accumulations of light oil that has excellent quality and a high commercial value.

Amount of oil which, after analysis of geo-scientific and engineering data, is estimated to have the same chance (50%/50%) of being reached or exceeded.

The relation between the volume of reserves incorporated in the year and the total volume produced in the same year.

The vertical portion of a flow line used for transporting oil/natural gas from the well to the platform.

Water depth of 400 meters or less

Water depth of over 1,501 meters

Exploration and production activities.

API grade oil between 38 and 40, and approximately 0.3% of sulfur, whose daily price in the spot market reflects the barrel price delivered in Cushing, Oklahoma, in the United States.