'-OIL&GAS

HANDBOOK

J

r

""litE 1NTERNA.11ONAL REPUTAnON OF BANK OF
SCon.AND WAS

IN ENSURING OUR OFFER WAS TAKEN

SERIOUSLY
BY 'litE SEU.ERS, AND 'litE SUPPORT OF 'litE BANK WAS INVAWABLE IN ALLOWING US TO COMPLETE 'litE ACQUlSmON. 'litE OIL AND GAS TEAM UNDERSTOOD OUR REQUIREMENTS AND QUICKLY CREATED A FUNDING S1'RUC1URE TO MEEI' OUR NEEDS."

J

J

LOOK

AT

TH!NGS

OlFHRENTLY

.>!<- BANK

Of SCOTLAND
CORPORATE

FOREWORD

r

A UNIQUE

GUIDE TO

MOST IMPORTANT
INDUSTRY
__ 1think you'll enjoy this new edition of our Oil & Gas Handbook. Over the years, it's become an indispensable workplace companion for oil industry people and service operators here in the UK and, ncreasingly now, abroad. It's become a teaching aid in universities - a unique guide through the peculiarities of practice and idiosyncrasies of language which the indelible hallmarks of the world's most important strategic industry. We're constantly updating the content, of to keep pace with the dynamics of this ~;n+"'m'Ot;r'n,,1 business sector. And we've refined e presentation to make it even easier to use as reference work - whether you're in Aberdeen I

THE WORLD'S

J

been thoroughly immersed in it for more than three decades. We were one of the first funders of BP's giant North Sea Forties oilfield in 1975. And we're the only bank to have continuously stayed in the sector as a senior upstream lender over that time. We've systematically built on that experience to enhance the solutions opportunities we offer clients. In the UK Continental Shelf and elsewhere, we've developed an integrated lending package that we'll amend and stretch to meet clients' differing needs.

Br@adening

01.111" horizons

S'il:sying power

in a gr@ulI'uj[ubreak§ng

and inl!1l@vali:ive industli'Y

We're more than a lender. This is a sector whose specialised capital requirements we understand completely. That's why we've moved up the risk curve to diversify the scope of our funding as experienced investors, too. As well as reserve-based senior debt lending, we provide both mezzanine-type funding and equity coinvesting with selected enterprises.

It's an industry that's always fascinated and us at Bank of Scotland Corporate. We've

LOOK

tiT

nl!NGS

P~FFE:R;::;N1LY

Page 4

Oil & Gas Handbook

->r(,BANKOF SCOTLAND
CORPORATE

It's one of our distinctions. We're the only bank with a dedicated equity team covering this arena. So, whether it's £20m for a relatively small management team, or a 5: 1bn deal for an 011 major, we bring a comprehensive suite of banking skills to bear on the full range of Oil & Gas financing opportunities.
The main player on a global stage

accountants and petroleum engineers to opine on the technical issues. That's another difference. OUf in-house technical expertise sets us apart a unique capability for fast, early-stage diligence which also gives clients the assurance of team consistency throughout a project's lifetime. This expertise is deployed behind our onestop suite of creative funding structures for all profiles - M&As, refinancing, buyouts, working and growth capital and hlqhly-reqarded syndication leadership. And it reinforces our strong capability in downstream financing, for gas storage, pipelines, refineries, liquid natural gas, even domestic meters. At Bank of Scotland Corporate we've built and extended a reputation for our long-term commitment - to individual clients, and to the dynamic industry as a whole. It's a partnership ethos of which we're proud.

And we have a wide geographical reach. Ours has to be a global operation. The North Sea remains a highly important province for us, but this is a global industry and clients expect us to operate alongside them worldwide, confident that we're familiar with the international legal conventions. We have sister offices In Sydney covering Australasian waters and in Houston handling the Gulf of Mexico. We're active around the North African and Mediterranean coasts. We're doing business in Canada and we're working with companies in Norway, Switzerland and France. And we're increasing our footprint in Asia Pacific and the former Soviet Union.
SieHill'llg l1..li5 aparrt from the resil:

AHasdair Gardner Head of Energy Bank of Scotland Corporate

After three decades in the business, we've built a highly specialist team of bankers,

J

Page 6

Oil & Gas Handbook

*. BANK Of SCOTLAND
LOOK AT THINGS DiFfERENTlV

CORPORATE

Oil & Gas Activity Map

Oil/Gas

FPSO

Nitrogen plant

Pipelines

Ammonia plant

Gas storage

Metering

Methanol

Gas transportation

Paper mill

LOOK

AT THHiGS

DIFFERENTlY

Page 8

Oil & Gas Handbook

->* BANK

OF SCOTLAND
CORPORATE

Edinburgh New Uberior House 11 Earl Grey Street Edinburgh EH39BN Scotland teD: +44 (0)131 659 0123 fax: +44 (0)131 659 0872 Lond@n Bank of Scotland Corporate Level 6, Bishopsgate Exchange 155 Bishopsgate London EC2M 3YB England tel: +44 (0)20 7012 9415 fax: +44 (0)20 7012 9448 Australia Level 24/27 45 Clarence Street Sydney New South Wales NSW 2000 Australia tel: +612 8299 8846 fax: +612 8235 0700

CiOIll'iIada Suite 5310 PO Box 415 First Canadian Place 100 King Street West Toronto Ontario M5X 1E3 Canada tel: +1 6474277014 fax: +1 6474264186 USA 1021 Main Street Suite 1370 Houston TX 77002 USA tel: +1 7136500662 fax: +17136519714

tOOK

AT

TH.INGS

DifFERENTLY

Page 10

Oil & Gas Handbook

.)5(0 BANK Of SCOTLAND
CORPORATE

INTRODUCTION

r

THESE "NEW FRONTIERS"

NEED

EXCEPTIONAL INGENUITY

AND INVESTMENT

J

The Oil & Gas industry has entered an era of unprecedented challenge on costs, price, technology and politics. Here, Economics Professor ALEX KEMP of Aberdeen University's Business School, reviews the volatile influences on the world's most important sector.

T

he world oil and gas industry has been experiencing buoyant activity

reflecting the dramatic increase in oil prices of the past few years. These reached a peak of nearly $1 50 per barrel early in 2008 before moderating for two main reasons. First, oil consumption, particularly among developed OECD countries, had in any case been falling already for some three years. And this decrease in demand was widely expected

companies; deliberate restrictive depletion policies by some host governments. The conflict in Iraq and US sanctions against Iran inhibited investment in those countries. And elsewhere, such as in the UK and the Lower 48 of USA, natural depletion was so strong that new investment had been unable to stem the decrease. "9t's ull'lllikeDy tl:hat there win be a further major sustained! price faU Hll'ii the lI'IIextfew years." Future activity levels will certainly depend in substantial part on the behaviour of oil prices. Forecasting these is notoriously difficult, as there are many unpredictable factors influencing supply in particular. Over the next few years, it is unlikely that there will be a major price fall from its mid-October 2008 levels. This could occur only with a combination of a world recession and a substantial increase in

to continue, as the pace of growth in the world economy itself slowed. The severe problems in the financial sector have greatly increased the likelihood of a world-wide recession and this has been reflected in the sharp fall in price to below $70 per barrel at mid-October 2008. Second, the industry had experienced considerable 'above ground' problems - supplyside disruptions in Nigeria, for instance; inadequate investment in producing facilities; lack of access to reserves by international oil

LOOK

AT

THINGS

DIHE.RENHV

Page 12

Oil & Gas Handbook

,*·BANKOf

SCOTLAND
CORPORATE

production. In practice, the latter would have to come from OPEC countries, as net non-OPEC production can only grow relatively slowly, with some countries exhibiting noteworthy decreases and a relatively few showing substantial increases. The much more likely prospect is that oil prices will remain relatively high over the next few years. This should be the case if the world economic downturn is relatively short-lived, but, even if world oil demand increases only quite slowly, the market should remain tight because the net supply response for the world as a whole is still very likely to remain sluggish. A critical factor here is the huge effort needed to replace natural depletion, let alone enhance production. Natural depletion in many areas where the oil is relatively easy to recover means that more and more exploration and production will take place in difficult areas - the very deep waters off Brazil and West Africa, for example, the Barents Sea, and the Arctic. Exploiting unconventional oil, like tar sands and shale oil, is likely to become increasingly important. Conversely, there will be precious few projects with very large, low cost reserves. "Investment costs will be huge EOilnd imagiinative financiing packages wiRI have to be devised." The likelihood is that over the longer term, the oil market will remain tight with relatively high

prices, and interesting opportunities will remain for both oil companies and contractors. The exploitation of oil and gas in difficult areas will require much ingenuity and technological progress. Drilling rigs and production platforms have to be adapted to very deep water and Arctic conditions. The demanding logistics of operating in Arctic waters will require innovatory solutions. The investment costs in these frontier areas will be huge, and imaginative financing packages will have to be devised. In the more conventional oil producing areas of the world, the investment opportunities will increasingly concentrate on the problems of enhancing recovery from mature fields. This will require the much more widespread application of technologies such as polymer flood schemes, steam injection, C02 injection and microbial EORln an era of relatively high prices, these technologies should become economically viable in many parts of the world. As with the exploitation of frontier areas such as the Arctic, success will depend on further R&D being undertaken by the industry. "R~s@ll!lll"«::e nati(maHism will nmit some! @perati@nal scope but will als@ open maJor opp@riuniiti~s." Inevitably in this industry, Government policies and politics will have a major influence on the evolution of the oil and gas sector. Currently resource nationalism is strong, with host

Governments and their national oil companies playing a dominant role in many of the countries with large reserves. This puts limitations on the scope for international oil companies, but it is noteworthy that contractor companies still have major opportunities. Often national oil companies do not have the knowledge of the latest technologies available in house, and contractor companies endowed with such knowledge are generally welcome as business partners. International oil companies, well-endowed with the most up-to-date technologies and with proven project management capabilities, should also be able to form fruitful partnerships with national companies in many countries. While resource nationalism is currently strong, in the long-run fashions may change, and, for the more demanding, frontier projects, the international companies should continue to have interesting investment opportunities. But projects with very large, low-cost reserves are unlikely to be widely available. "4 new order of experiise and iechnol@gy is n@w neelliled from oil companies .llIl'IId iheiill' c@ntractors;" Government intervention in consuming countries will also continue to have a major influence on the industry. Thus the perceived need to reduce C02 emissions is likely to be a continuing major preoccupation of most

Governments around the world. How strongly abatement policies will be pursued remains uncertain, but it is quite conceivable that they will be implemented such that they will have a noticeable effect on the behaviour of world oil demand over the longer term. The effect could be sufficiently strong to modify the world depletion profile with the effect of reducing the plateau level and extending the economic life of the whole industry. While strong abatement policies are likely to be pursued in many Western countries, the position in other major consuming countries such as China and India is much less clear. It is also noticeable that oil consumption in OPEC countries is rising quite rapidly. The net effect is thus difficult to predict. In summary, the long-term prospects for the industry provide substantial opportunities for oil companies and contractors, but these require the provision of a new order of expertise and technology to permit the exploitation of reserves in difficult, frontier conditions and in mature fields in more conventional oil producing regions. As ever, Government policies and political uncertainties will have a major influence on the Investment climate.
Professor Alex Kemp

October 2008

Page 14

Oil & Gas Handbook

*. BANK Of SCOTLAND
lOO~
AT

THH~GS

OIFfEREIHlY

CORPORATE

Page 16

Oil & Gas Handbook

*' BANK Of

LOOK

AT

TH!NGS

P~FFERENTlY

SCOTLAND

CORPORATE

Alkylation
A refining process used to produce improved gasoline components with for example lower pollutant effects. Also used in plastics manufacture.

AII"IlUmknock compoumils
methyl lead (TML) or methyl tertiary butyl ether (MTBE) to prevent gasolines detonating (knocking Dr pinking) under compression. This enhances their octane rating. Anti-pollution measures will in future

Adciitivessu~h as tetra ethyl'I~~d '("'T=E:C-L""')-a-nd""""-tetra

r

Final plugging of wells, and/or permanent dismantling of a production platform or other installation.

Aliphatic

hydrocarbons

A group of hydrocarbon substances, including the alkanes and most of the other fractions found naturally in crude
011.

largely eliminate lead-based additives.

See page 147.

Appraisal well A well drill~d to confirm the size Dr qualitY
(commercial potential) of a hydrocarbon discovery. Before development, a discovery is likely to need at least two or three such wells.

The ability of a gas, liquid or solid to attract and retain another substance without chemical combination. A quantity of such a substance that has absorbed as much of another as is physically possible is said to be saturated with it. Some refinery processes use th is ability to separate different hydrocarbons.

A9h.llwialfan

A pattern of sedimentary deposit frequently laid down by streams or rivers where they spread out onto plains. Alluvial fans from past geological eras are potential reservoir structures.

;:------,--.,--------,-,--,---.

Aquifer
An underground iotmetion of rock containing water. Such formations may be, and frequently are, the same as those containing oil or gas reservoirs .
......

American (API)

petroleum

institute

._---------_

API is the world's foremost authority on oil industry See Stimulation. standards and practices. API Gravity is a reference system for the den sity of crude oils and constituent hydrocarbons.

Area of mut\YIaD mnterest (AMI)
Area where two or more companies agree to explore exclusively in concert.

Aclt'e..footl;
Unit used to measure the rock volume of an oil or gas reservoir structure.

Anll"llulus
The ring-shap~dc~~itYb~tween two concentric The group of hydrocarbon products, which include benzene, tal uene, etc. and provide feedstocks for many of the main petrochemical processes, as well as high octane rating gasoline blends. So called from their sweet smell. See Page 147. lubes, egoinner and outer strings of casing, or

Finance for exploration and production provided in return for a first claim on production. Typical sources of such finance are US refiners and pipeline companies.

between casing, or drill pipe, and the well borehole.

AlI"Ilode
See Sacrificial Anode.

Ariiiculated pRati'orm ----cAnticlill"llte
A geological structure sometimes described as a dome or inverted saucer. Such a structure would be an anticline with four way dip closure which if covered by an impermeable layer of rock would make a potential oil or gas reservoir. Not all anticlines are this perfect shape.

__ c------c

A se mi- buoyant structure anchored to the seabed by means of a universal joint coupling, which allows it to move with the forces of the sea, etc. Such structures need less rigid strength than fixed platforms and so are relatively light and cheaper to install. Two views of an articulated flare platform

The attraction exercised by a solid in drawing a gas or liquid to its surface without ebsotbinq it.

J

Alkanes
Naturally occurring paraffin fracti~;;s of which the molecules are based on a straight chain of hydrogen-saturated carbon atoms. See page 147.

Ariificial drive
Methods of producing oil when natural reservoir pressures are insuffici ent or have decli ned, such as injection of gas or water into the reservoir structure.
---------

~OQK

AT

THINGS

tHHE;.R!;:NHY

Page 18

Oil & Gas Handbook

9!(.

BANK Of SCOTlAND
CORPORATE

GLOSSARY
--,.---_ ..

A solid petroleum and pitch.

residue, similar to bitumen, tar

_

... ,,-------_

...

------,._

...

AquantityOf42-US
oil volume.

Barrel/barlf'elagje
-g~lI;ns (appro;imateiy

(Bird cage 011' belly pew

Black oil/black

cOlllrgo

35-

The small net-enclosed platform used offshore to transfer people by crane from, for exam pie, boat to platform, or rig.

Crude oil, or dlstillecicrude c;ntainingth~f~actions heavier than middle distillales.

imperial gallons). The traditional unit of measure of Barrelage
..
---

._-",,'

--_

...

_

.. ,_-

---_

,._ .... _--,.

Natural gas found as part of, or in conjunction with other constituents of crude oil, as opposed to such gas found on its own. The expression has come to include natural gas necessarily produced along with crude oil.

__

is a term for oil flow quantity measured

by volume.

Sit
A drilling bit. Those chiefly in use are the steel roller-cutter, and the diamond-insert bit for hard formations. The diamond-insert bit penetrates by scratching or abrading the rock rather than by crushing or pulverising like the roller bit. In addition, PDC (polycrystalline diamond compact) are used often With down hole motors to achieve exceptional rates of penetration. There is also the annular diamond-insert core bit, for cutting and retrieving rock samples (in conjunction with a core berrel).

See blowout preventeripipe

rams.

\Basket
A hollow tool used to retrieve junk from the well when fishing. The name is also sometimes given to the bird cage.

Biock
1. A Ecence-~r concession area. It may be ~Imost any size or shape, although usually part of a g rid pattern.

2. An arrangement of pulley wheels used in lifting,
on a derrick or crane.

Originally known as the American Society for Testing and Materials. In conjunction with the API and Institute of Petroleum, they publish authoritative standards and calculation tables used by the oil industry. (ASTM tables).

\Batier
The inward slope of the legs of a steel platform for stability, so that the base of the jacket covers a larger area than at deck level.

Bloom
The rainbow-like fluorescenceshownby;il:fOr instance, when floating on water.

Bead
The fused metal resulting from a welding operatio~or "pass" in a major weld, as in a pipeline. There are normally three: the root or stringer bead, the filler bead and the cap bead.

Blowdown ... _--1. The process of releasi~
atmosphere. 2. Primary production gas.

pressurei~~

example a refinery pressure vessel by venting to of a crude oil or condensate

Back@ff ,,---_._,._." _ .... _ 1. In drilling, to pull the drill string out of, or partly
--..... .. _

...

Bean
A choke, the orifice In a flow control valve. To bean up or bean down means to install a larger or smaller orifice, or to open or close a variable valve.

reservoir us ing the pressu re of th e assooiatcd

out of, the borehole.

2.

To unscrew a joint of drill pipe.

Diamond bit

Roller-cutter

bit

Blow@ut
Uncontrolled or unco-ntrollable release of downhole pressure upward through the wellbore or casing. Although the main danger is fire, the gases are also toxic, and in floating operations a gas blowout may include a threat to the stability of the rig itself. See mud.

3. To slacken off a line or block. \Bentl:onite
See mud Water taken aboard a tanker, semi-submersible etc. to maintain stability and to distribute load stresses (e.g in the case of part cargoes). Modern tan kers have seg regated ballast tan ks so that the water does not become polluted with oil. rig,

\Billion
In oil and gas usage, a billion means 109 not 1012. One billion cubic feet (BCF) ~ one thousand million cubic feet.

Diamond core bit
Three types of bit - Source: Whitehead

An emergency shut-off valve installed~n

.... _--_.

the ...

wellhead during drilling or testing of a well, which A very heavy substance used as a main component of drilling mud, to increase Its density (mud weight) and counterbalance downhole pressures.

J

incorporates hydraulic pipe rams capable of closing the space around the drill pipe against very high pressures.

Bitumen
A form of heavy, solid petroleum. See asp-~

Page 20

Oil & Gas Handbook

.* BANK OF SCOTLAND
LOOK AT THINGS DIFFl,;:rU::NHY

CORPORATE

GLOSSARY
B@omer
This expression normally refers to a compressed air, or electrical source of sound used in marine seismic survey work

BotiomSaUp
Circulation of drilling fluid in a well, until the bottom hole-mud and cuttings reach the surface, Indicating that normal circulation can commence,

Caliper
---

The walls surrounding storage tanks used to contain the contents in case of rupture or spillage,

A tool for checking casing in a wellf(J"rdeformation before, for example, running drilling tools, which might become stuck, or packers which might leak

BU!!iIke!l"c'

A well, es'pecially referring

B@reh@le

Ahe;~y to the face of the rock A propeller mounted transversely in the bows of a vessel to assist in docking, manoeuvring and keeping station, See thrusters,

residual fuel(J"il obtained as a-result of The quantity of heat produced by complete combustion of unit weight of a material. Expressed in jou les or as eith er calories per gram, or Britis h thermal units (BTU) per pound, or BTU per standard cubic foot of gas,

distillalion of crude oil, used as fuel primarily for marine steam generation,

outside or below the casing, Test boreholes are also sunk to examine the suitability of a site for major foundation work, and to examine geological formations at points where no hydrocarbons are expected,

Bureau weritas
...

_-

--", ...

See certification.

The hollow, or female end in a threaded connection, such as found in drill pipe, See maturity See bead,

lBo-titles
1, Small pressure vessels of various kinds, used to absorb pressure fluctuations,

Bridge plug
A downhole packer assembly used in a weI/to seal off or isolate a particular formation for testing, aCldising, cementing, etc. Also a type of plug used to seal off a well temporarily while the wellhead is removed,

Burry barge
A vessel used to bury completed submarine pipelines in the seabed, This is done by scouring away the seabed under the line with high-pressure water jets, usually mounted on an underwater vehicle known as a bury sled or jet sled, The An impermeable layer of rock above a discovered or potential hydrocarbon reservoir, providing a seal to contai n th e reservoir fl uids,

'2, Cylindrical flotation tanks such as those
temporarily attached to a platform jacket during placement

B@ttom-h@le etc.
The deepest part of a well, thus:

Carb@!!iIblack
Carbon derived from petroleum in soot-like form,

Bottom-hole assembly (BHA) includes the
drilling bit, drill collars, stabilisers and other drilling components run into the well on the end of the drill pipe, See drifl string,

A circular

Brucker

capsule
escape-and--s-urv---:-iv-'al--::li::-fe--:-boat desqued

pipeline settles into the trench so formed and is covered by re-settlement of the seabed sediment

to be lowered automatically on a single wire cable,

Carbon

dioxide

(C02) injection

A method used in secondary recovery from an oil reservoir, in conjunction with water-flooding, The pressure at which a saturated hydrocarbon liquid releases gas out of solution, See absorption. A commercial arrangement, Whereby expenditures due from one participant in a joint venture are met EqUipment-for propane or butane LPGs as liquids under pressure,

Bottom-hole payment. A cash payment to the
equity participants in a well, on its reaching target depth, by other parties interested in acquiring the information it yields,

Bottom-hole pressure. Formation pressures
measured at reservoir depth,

drilling-a well by the outdated cable

by another, usually in exchange tor increased equity or repayment out of production revenues,

method, Specifically, the heavy sharpened bar or bit, which penetrates by being repeatedly dropped in the borehole on the end of the cable,

Bottom-hole pump (also downhole pump). A
pump installed in the lower end of the wellbore, to increase productivity,
._---

Casiingetc.
The steel pipes with which a well is lined, for protection against collapse of the borehole and unwanted leakage into or from rock formations, or at the surface, Joints of casing are around 33 fl! 10m long and are normally screwed

A telescopic joint inserted at the upper end of the string of drill pipe in floating drilling operations, to com pensate for vertical motion of the rig with reference to the wellhead on the seabed,

BoH@m of th.e barrel
See fuel oil, heavy ends, etc.

Page '2'2

Oil & Gas Handbook

.*. BANK OF SCOTLAND
LOOK AT TH!~GS DIFFER:ENTl'l'

CORPORATE

GLOSSARY
together as they are run into the well. Particularly in offshore drilling, it is normal to set large diameter casing, (such as

Casing point. The depth of the lower end of a
string of casing.

Cellar deck
1. The deck or 'floor beneath the working floor of a drilling rig.

Ceriifiicati@n (cHassificatiion)
The process of certifying the origin, quality and 'fitness for use or operati on to given standards of a platform structure, process, item of equipment, etc. Certification originated in ship construction and insurance classification. Major certification authorities acceptable to Government agencies etc. are Lloyd's, American Bureau of Shipping, Bureau Veri/as and Det Norske Ventas.

30

in) called the

Casing shoe.

A reinforced section of casing run

conductor (or surface) Pipe after the well has penetrated the layers nearest the surface, and cement it into place, after which the drilling continues with a smaller diameter bit. The next string of casing, the Surface String is cemented inside the previous string and down to the new casing point (see below) which may be at, say 1,000/1 ,500 m and forms the base for the wellhead. This is followed by one or more intermediate strings depending on the target depth and expected conditions in the well. Finally, the Innerlproduction string is set and cemented

into a well at the lower end of a string, to protect against buckling or deformation.

2. The deck below the main superstructure of an
offshore platform.

Casing tong. A large mechanical wrench for
screwing or unscrewing casing joints. (Now usually power -operated)

Cementell:c.
... _--_.

Cement is used to set casing in the well bore and seal off unproductive formations and apertures. It is also used as a coating to add weight to submarine

The drum of a power winch accessible from a rig floor or ship'S deck for hoisting, pulling and tightening operations.

pipelines, which might otherwise float or be easily displaced, particularly when filled with gas.

Cellalllle 11\!iI.!Imber A measure of the performance of diesel fuel in
working conditions (i.e. under compression), similar to the octane number used for gasolines.

Cement log bond (CBL) The measurement
made by a tool run in a well to measure the extent to which the Cement has bonded with the adjacent surfaces and provided an effective seal. See page 120.

Cat cracker
See Cracker.

through the reservoir zone, and perforated to allow hydrocarbons to enter the well.

Chaiintong A power wrench for tubular connections in which
--~-------------

Catenary
The curve assumed by a chain or cable suspended between two points (e.g an anchor chain). Outer conductor (20") Hole call per 24" Surface string [13%,

Cement slurry See slurry. Cement squeeze in a well is the injection of
cement under pressure between casing and borehole wall, especially where bonding is poor, to

the pipe is gripped and rotated by an endless chain-belt running on rollers.

ChanneUillllg

Cathodic protection A method of neutralising the corrosive static
electric charges in a submerged steel structure. See sacrificial anode.

..............

-.- ..~-------;----:--:-:---:

fill any cavities and to infiltrate the rock to further seal it off.

During production from a reservoir, which is being supported by pressure from contiguous water or gas, the water or gas tends to travel towards the

Centipoise

(CP)
-----

wellbore faster through channels or layers of more permeable rock (see permeability) bypassing and holding back production from the less permeable rocks.

Intermed iate string
(9")

A unit of measurement of viscosity. It expresses the

Oil String (7") Drill string (5" bit) A casing programme ~ Source: Whitehead

Catwalk .._, _---_ . A narrow elevated platform or walkway for access
to equipment

force needed to overcome resistance to flow, and to maintain unit velocity of flow, in a given field.

------

Cave-in
Collapse of part of the wall of a borehole, usually in

_

._--,...

CheckvaDve
--

........ _ .....

_-

A separator operati ng on the principle of differential acceleration of particles of different mass, an effect produced by eqoipment similar to a turbine spinning the feedstock in an enclosed chamber.

A non-return valve, allowing only one-way flow.

J

a poorly consolidated rock formation.

Checkerib@ard leasing
A phrase used in exploration to describe granting concessions or leases on alternate blocks. A discovery will tend to increase the value of contiguous blocks still unlet.

Casing hanger.
The lug or bracket from which a string of casing is suspended at the upper end.

Cavern storage
Underground natural or man-made storage chambers in suitable impermeable or artificially lined rock formations. They may also be designed for cryogenic storage. See jug.

Centralisers
-"

..":---:-----

Spacing collars attached to the outside of casing when run in a well, to keep it central in the bore and ensure an evenly-shaped annulus in which cement can circulate and set.

__

---,,----

Casing head. The flanged top of the casing at
the surface to which the blowout preventer is bolted, and, in production, the wellhead.

Page 24

Oil & Gas Handbook

.*.BANK Of SCOTLAND
CORPORATE

GLOSSARY
Caeancal"g@
An aperture restricting flow in a well or flowline. See bean.
-----,
...

C@nce5sion
A licence, lease, or other p~-r-mitfor exploratTo~--and/or production In an area or block. It usually denotes a government lease.

1.

Any white oils such as gasolines, naphtha, or middle distlflales, from the "lighter end of the barret', i.e. excluding black oils.

Carbon extracted from crude oil, usually as a result of thermal cracking. It is much like ordinary coke in appearance, but its purity makes it preferable in several industrial processes, including aluminium smelting.

Christmas

tree

2. Oil with less than 1 per cent basic sediment and
water, egofor pipeline shipment

The manifold, or arrangement of pipework connections and valves that is installed on the wellhead prior to production. As well as outlets for

C@nclI'ete platform
See gravity structure.

Closure
F-our~way (all round) closure

C@mmercial

wen Condensate
Light hydrocarbon

production, the tree will provide for the injection of mud to kill the well, and 'for the insertion of downhole maintenance tools.

or se~neces~ary,

A well capable of producing profitably.

(gas condensate)
fractions produced with natural

over tho top and down the gradients on the sides of a potential reservcu, before it can trap or reta n hydrocarbons. Closure may be structural as in an trapping or salt intrusion. Preparatory work, servici ng, etc. usually on newly installed equipment, and all testing prior to full production testing. See start-up. anticline, or may be partly due to an impermeable fault, or stratigraphic

gas, which condense into liquid at the normal temperatures and pressures associated with surface production equipment

CI@ud pOill'llt
The temperature at which paraffin waxes will solidify and give a cloudy appearance to the oil of which they form part. The legal status of some pipeline companies, primarily in the USA.

Conductor pipe provides a guide and access to the well, and seals it externally to enable circulation drilling fluid On land and in offshore jack-up or platform drilling, this is driven rather than drilled in to the soil/seabed. In a floating drilling operation, the cond uctor extends from the rig down to the wellhead on the seabed. of

C@mpletion

Coal gasificatioll'll
Conversion of coal into methane, still at the pilot-plant stage. Conversion in the coal seam by downhole process is also under study.

1.

Installation in a well of production tubing and equipment, wellhead and Christmas tree.

-------

Q. Fulfilment of a contractual obligation.

Conformati@1I'II ell w
An early appraisal or step-out well. The procedure specified In, for example a construction contract, or project financing agreement, for determining whether the plant, field development, etc in question meets the operating specifications laid down. A completion test may in some cases extend over several months.

A Christmas Tree

J

Coat.ing (pipeline)
1. Cement applied externally, weight-coating.

Coning
If an oil well is--produced at excessive rates, th-e-reduction in reservoir pressure may tend to draw up underlying water towards the well in a cone - like shape. Likewise, gas can be drawn downwards from an overlying gas cap.

2. Anti-corrosion compounds applied internally. Circulati@n (dI"DlHiing) Cofferdam
In platform construction, the floatable wall used to seal a dry construction dock. When the dock is filled with water for platform float-out, the cofferdam is de-ballasted and floated to one side to allow egress. The passage of fluids, primarily drilling mud, down the interior of the drill slem and back to the surface via the annulus.

Reverse circulation is in the opposite direction. Circulation bottoms-up. See bottoms-up.

A platform capable of swaying to absorb sea forces. See articulated platform.

Rock, which has been formed from the sediment and detritus of other rocks, egosan dstone, shale, conglomerates, etc.

Page 26

Oil & Gas Handbook

.*. BANK Of
Af

La OK

THINGS

plfFEOfl-ENTl'f

SCOTLAND

CORPORATE

GLOSSARY
network of necessary actions of known sequence The depth to which a well is to be drilled under, for example, a turnkey drilling contract. and duration, and aims at identifying priority points at which actions "critical to" (holding up other progress on) the project need improvement or elimination. The small chips or flakes of rack retrieved from a well by the circulation of the mud durind drilling. They are studied and logged by the well site geologist.

Core/core

barrel

A-vertical section of reservoir or other rack taken in drilling a well, used for detailed study and analysis. In order to retrieve the core as intact as possible, it is cut from the rock by an annular core bit. The column of rock passes through the centre of the bit and, as the bit cuts deeper, is received by a hollow cyli nd rical core ba rrel above the bit, where it is Coning An unrefined mixture of naturally occurring hydrocarbons. Because It is essentially a mixture, th e density and properties of crude oil vary widely. Light crude normally has an API gravity of 30° or more. Gravities of 20° to 30° include the medium gravity crudes, while those below 20° are known as heavy. Heavy oils are found right down to the residual solid state. Sour crude has a significant sulphur content. Lowsulphur crude is described as sweet.

Crowl'll block
The upper fixed pulley assembly at the top of a drilling derrick.
~~------~~~~--~----

Daisy chain
name given to a series of interdependent contracts for future purchase and sale of oil.

J

retai ned and protected by a series of rubber baffles. When the bit has cut deep enough to fill the core barrel, it is withdrawn from the hole and the core extracted. In this way, the actual sequence of rock strata is preserved.

Darcy
The unit of measurement of rock permeability, the extent to which it will allow a fluid loflow through it. The permeability of most oil and gas reservoir rocks is measured in millidarcies (thousandths of a darcy).

Connate water
The original water content of a reservoir rock. Connate water reduces the pore space (poros ity) available to hydrocarbons. interstitial water. Sometimes called

l.e,

Cracker
"A refinery plant or process, which uses heat (thermal cracker) and/or the presence of a catalyst (catalytic cracker) under pressure to break down long-chain-molecule, heavy fraction distillates, into such as

Consortium
A Joint venture enterprise used by the oil industry as a vehicle for joint operations where a distinct local legal entity and, 'for example, joint staffing are required. It may have the legal status of a partnership, limited partnership, Joint-stock or jointguarantee corporation, etc. according to local law.

Cryogenics/cryogenic

storage Data
Although applied to any factual information, this term most commonly refers to seismic data: the computer records and output of a seismic survey.

more complex and reactive hydrocarbons gasolines. See reforming.

In oil industry terms this refers to very low temperature handling, processing or storage of hydrocarbon substances. See cavern sl6rage.

"A-n exp~ession reflecting the fact that the largest reservoirs in a prospective petroleum province tend to be found first, followed by a predictable, progressive decrease in the size of discoveries.

Cut/cuI!; point
A cut is a hydrocarbon substance or group of

Deadi oil

substances extracted from a wider mixture in a refining process. For instance, primary distillation will usually yield a naphtha/gasoline cut, a middle The load-carryi ng capacity of a vessel, the 'live' weight being the displacement weight of the unladen vessel. distillate cut, and a residual fuel oil cut, with an overhead cut of gases. The specific gravity at which each cut is separated by the process is the cut point. Cuts are made with progressive fineness and accuracy as the oil proceeds through the refinery.

Contaminated
with 011.

balnast

In a tanker, ballast water, which has become mixed

Criisial contrad shelf
Contract regarding a supplement to tanker liability for oil pollution.

Continental

The -~-hefarea covered by shallow water around major land masses. It may be 50 -100 miles/SO 200 km in width and merges into the steeper continental slope. Below the slope is the continental rise, which merges into the ocean floor.

Criiiical path iimalysis
A project' planning tool normally used in large construction/development projects. It is based on a

Dead_ell
A well, which will no longer produce without fu rther sti mulation.

tOOK

AT

THINGS

DifFERENTlY

Page 28

Oil & Gas Handbook

.)j<r

BANK OF SCOTLAND
CORPORATE

GLOSSARY
DefallJlBl: DehydratclJIl" (gas)
Equipment for the removal of water from a gas "options". Their most common use is to control price risk fluctuations through the markets rather than in conflict with them. See diagram opposite.

A cracking

.-

---

"_ ..

,

--_

...

"_.

proces~f

which the main products are

There are many uses of this term, but it is of major importance in jOint ventures, whereby a participant which fails to meet its cash contribution obligations may, in specified circumstances, lose rights in the

aromatic hydrocarbons. depr@pa!l'l!isell' etc. A proces~vessd(col umn) set to cut or extract
a specific hydrocarbon

stream, for instance prior to transfer by pipeline. Delurt'lleatii@nwell A name for an appraisal well, usually one drilled
specifically to determine the boundary of a

DebllJltaniiser,

concession

in question.

lrectior: Deficiency g<llls In a Take or Pay gas sales contract, this is an
...

A-pylon-i ik-e- steel tower whch~ provides the -verticaf··
lifting capacity needed for drilling a well. The derrick man is the member of the drilling crew who works up within the derrick on the tubing board or 'monkey island', a platform where the upper ends of stands of drill pipe or casing are handled, and hung onto or detached from the kelly or hooks. See drilling rig, and diagram.

discovered reservoir.

Dec@mpressi@rt'II/dec@mpressi@n chamber
Theproc~ssof
-.

__ .-.,,_.,_

'_-

amount of gas, which must be paid for, although not taken.

DemllJlrrrage
Originally, charges for keeping shipping waiting outside the times allowed in the freight contract. It m a nIy relates to oil tenkem. but can be applied to any major facility, e.g pipeline demurrage is chargeable for late delivery to or from a pipeline system.

gradually reacclimatising deep

divers to surface pressure conditions. For relatively shallow dives this is achieved by a controlled rate of ascent. For longer, deep, 'saluration' dives, the divers are recovered under pressure into a decompression chamber, where pressure reduction may take some days.

Degasser 1. A separator which removes from the returned mud flow any entrained gases from formations
down the well. Gases can cause a potentially dangerous reduction in the density of the

Apparatus for re·~~ving sai"t and salt water fr~·~--

mud and hence its ability to contain downhole Deep rig
pressures. designed and equipped to withstand 2. Any process which removes gases of various kinds from an oil flow.

DelliHetii@rt'II etc.
Prog ress ive red udion in reserves as a result of

crude oil.
allowance, In some The drive is

A drilling rig

production. Depletion

the loads and pressures associated with drilling to deep objectives (eg. over '20,000 ftl6,000 m),

countries, is a type of tax-allowable amortization recognising this reduction. Depletion

maximC";; size and" frequency of wave

that

an

offshore structure must be able to withstand.

DeepweDH ·See rig. The deepest so

deep

primary production, i.e as a result of expansion of reservoir gases with decreasing pressures.

DeweD@pment
Any major construction such as a reii~ery, or a

far-d~ilie'd-by-th~'····
A rei ief map of a sub-s urface geolog ical structu re, where the contou rs relate to depths from the surface datum level (i.e. sea level). This is a further

r

industry is approximately 30,000 ftl9,000 m.

production project. It has com e to
to abandonmenl. a reservoir.

IT1 ean, or cover,

the whole life of a production project from design Strictly speaking, it refers to the planned, and actual production of reserves from

<Derivative

Oil Market ego 'Brent Blend'>

<Physical

Market>

interpretation of a seismic time map.

Derivatives
Oil Sales
Contract

=
~

... _-"",.

1. Hydrocarbon

derivatives.

See page 153.

Any well drilled in the course of extraction of

_ .. "..

---

....

--_.

-

=
NB: The trade customer might also hedge similarly against rising prices

related to Spot Market Price

'2. Financial Derivatives.

The type most

=
J

frequently used in the Oil & Gas industry are pse.rdo-sales transactions (rather than physical sales of oil, etc.). The simplest is the forward sale of oil, which
IS

reservoir hydrocarbons, whether specifically a production well, or injection wei/. See exploitation well.

not intended to be delivered, A well, of which the path has been deliberately diverted from the vertical. Although relatively costly

but matched with a suitable purchase at some intervening time. Derivatives include 'swaps' and

Typical 'Swap' Hedging

LOOK

AT

THINGS

DIffERENTLY

Page 30

Oil & Gas Handbook

.>!<. BANK

OF SCOTLAND
CORPORATE

GLOSSARY
to drill, they are used particularly offshore to reach distant parts of a reservoir from a single platform. Deviated, or directional drilling up to 60° to 70° from the vertical is now fairly common. Greater deviation is possible with special equipment. See horizontal drilling and slant drilling.

Dip, diipmeter

Diveriell'
A safetY

with the resultant signi-ficant fitted in the earlystage~ of a well, processing costs.

savi ngs

in water

1.

The inclination from the horizontal of the top surface of a geological structure. A diprneter indicates dip relative to a wellbore. See page

device

instead of a blowout preventer, to divert and vent off any shallow gas encountered.

117:HDT. 2.
Measurement of the contents of a tank by the lowering of a weight and prepared line into it. See tank dipping.

D@gReg
Wh-ere a well has bee~ deviated and later returned to the vertical. The expression may also be applied to any similar double bend in a pipeline or well.

_---'------,__

__ ___Jtraight

run gasoline

30°C to 175'C

Platform

Directional

drilling

See deviated well.

D@ghouse

The driller's enclosure or shacks which serves as a

-----c---

Lj.---_'-kerosine

Distillate

150°C to 250"C

Dirty cargo
Crude oil, or any cargo containing black oj! or residual oils.

wellsite office and control room.

L:__).""""-"",,, _Distillate gasoil
200°C to 350°C

Dope

A grease-like
----

substance

~sedto protect and seal

joi nt threads of tubulars such as casing. A successful exploration well, or wildcat. The first successful well on a new prospective reservoir structure.
~ Oil Reservoir ~ Water

Downmlliip
An area of astruct~;e-~here the top ofihe formation is lower (e.g offshore, deeper below sea

Development!

deviated

wells

J

Distillation/distillation column/distillate
The process of heating and flashi~g (bOiling off) of successive fractions (component hydrocarbon

level) than th e point under consideration.

Downhole
Down a well. -rhe expression covers any eqlJipment, measurement, etc. in a well or designed for use in one.

Crude oil distillation fractionating tower

process

in a

Source: Whitehead

J

Dewpoiint pressure
at reservoir temperatu reo

---",.---

-

substances) from a crude oil feedstock, or a product of earlier distillation. A distillation column is an elongated vertical process vessel designed to give optimum physical

The pressure at which liquid condenses from a gas

Downstll'eam
Downstream is a relative term (the opposiieOt Upstream) in oil industry operations. For instance, a refinery is downstream of a crude oil production unit, and a petrochemical plant usually downstream of a refinery. The term has also come to mean all operations occurring after the delivery or lifting of saleable quality crude or gas from the production unit or associated delivery terminal. A 'downstream' company has no production of its own.
------------~-----

D@wnhole sepOillration
Traditionally, well fluids,-n-am-e,----Iy-, o-il- nd-wate~ g-a-s-, a have been separated at surface in a wellhead separator and the resultant fluids are then individually processed. Recently, downhole equipment utilising the principles of centrifugal force have been introduced, which can allow two and sometimes three phase separation to occur near to the formation from which they have been produced. This technology, when coupled to multilateral wells, provides the capabi lity of disposing with the need to bring water to surface,

Diamond bill:
See bit.

separation of required fractions flashed inside it. The products of distillation are known as distillates.
------,._---

Diapir

See flash off/flashing.

An up-thrust intrusion of lower density rocks through overlying formations, egoa salt dome.

Ditch cuttings
See cuttings. Originally retrieved from the dit~hOf early land-based mud systems.

Differential

pressure

The difference between the pressure in a well due to the mud column and the pressure in the surrounding rock at any point. See sticking.

Page 32

Oil & Gas Handbook

.*.

LOOK

AT

THINGS

DIffERENTLY

BANK OF SCOTLAND
CORPORATE

GLOSSARY
Dowll'Iltime
A period-when any equipment is unserviceable or out of operation for maintenance etc. well. Penetration is achieved by "weight on the bit", or the weight of the drill string minus the weight of the eq uivalent volume of mud in the well. diagram of a typical offshore rig is shown on this page. The rig comprises a derrick, a draw-works or source of power, lifting tackles and blocks, a kelly and rotary table to rotate the drill string, a mud pump and mud circulation system, a blowout prevenler, and a system for handling drill pipe, casing etc. Modern improvements include top drives, which replace the rotary table and "iron roughnecks", which provide automated pipe handling operations.

Dvygas

Natural gas, methane and ethane~;';:;itho~t~rlY sig nif Icant content of heavi er hydrocarbon fractions.

._---,,-----

Drillw«.!lown
The difference between shut-in and flowing-bottom hole pressures.

Drilling

ClI'ew

DlI1I'hoBe
An unsuccessful well. Sometimes called a 'duster'.

The crew on a drilling rig is supervised by a senior drilling engineer known as a loa/pusher. Other members of the crew include the driller in charge of a shift, who ensures adherence to the drilling programme and maintenance of the shift's operating log or tour sheet. He controls the lifting mechanism and hence the weight on the bit (see drill siring). Other skilled members, may be motor men, derrick men, 'floor men, pump men, etc. A low ranking member of the drill crew is known as a roughneck. Partly skilled or unskilled members are known as roustabouts.

Dynamic

p@sitioll'lliill'llg(DP)

Drm coBBiIllI"
See drill string.

A system of computer~o~t~olleddlrection~lih~uster propellers which enables a DP floating rig or drill ship to maintain position over a subsea well Without using anchors. It is mainly used in deep water where anchoring would be impractical, but may also be used in the viCinity of vulnerable seabed installations.

DrriRI Pipe
Pipe, usu-ally of 3.5 in to 5 in outside diameter, which is supplied in joints normally of around 33

ftli0 m in length, each being fitted with thicker, or
'upset' reinforced threaded couplings at each end, male and female or pin and box respectively. To save time, drill pipe in use, but not In the well is stacked in stands.

Drilling flMid
Drrnl shiip
A maritl~e vesselmodifled to include a drilling rig, for exploration in very deep waters. Although less stable than a semi-submersible rig it has greater load carryi ng capacity and is therefore more self-contained when far from land. See mud.
... _.

Drilling

---,----,--,---_

OMt

Progressive reduction in the vaiue of a:p~od;:;drlg--asset as a result of production. See depletion allowance.

When a well must be deviated or sidetracked, either as planned or to avoid a fish, it is normally necessary to cut a hole in the casing wall and drill out on the new path.

DlfiU stem/l!lhrill

stem

test
Driniing rrepori
Every twenty-four hours the driller's log and the geological cullings log, together with the observations of the toolpusher and any other Significant data, are sent, usually by telex, to the area drilling manager and other interested parties. The report will also include the usage of materials,

The assemb!;;ddrill pipe in the well is known as the drill stem, and serves three main purposes: to rotate the bit, to convey drilling mud or cement down lhe well, and to flow to surface the fluids in primary assessment of a discovery (drill stem testing/DST). See drill string.

It may take 60 days 10 sink an exploratory weI! akm into the sea bed. As it goes down, steel tubes, decreasing in diameter from 30inr 760mm 10
7in. 180mm are cemented in at different depths to line the hope - up

The area of the seabed over which an adjacent state can claim rights of exploitation (currently up to 200 miles).

10 500 torts of st-e-elmay be built in as a consumable in this way whether the weI! is successful or not, and in all, with dril!ing mud, cement and other consumables up to 3,000 tons of material wHi be used.

J

EUedric
See log.

log

A semi-submersible

rig

Egedrric sWlweU (top dhriive)

DroOl string
The asseinblYof bit (for penetration), drill collars (for weight, rigidity and torque transmission), slabilisers (to ensure straight hole and help transmit torque), and the length of drill pipe in use in the

stock levels, and requirements for supplies. See drilling crew.

Drilling tools
A term applied generally-to-any-downhole' accessory includi ng, for Instance, stabilisers, Jars, fishing equipment and directional drilling apparatus.

A powered ;wivel, which rotatesthed;il'-;tem above the rig floor, thus replacing the kelly and rolary table.

from

----_-'

..

Almost all drilling is now carried out by rotary rigs. A See conductor pipe.

_-

LOOR

tiT

THINGS

D~FF:E.RENTlV

Page 34

Oil & Gas Handbook

.X<- BANK OF SCOTLAND
CORPORATE

GLOSSARY
source. Similarly, gas may be entrained in a stream A bltpo~ered

IExpl@itati@n weHI
A development well, e.g an all or gas producer, or gas or water injector to SLIp port production.
--~-------------

stated depth for a 25 per cent equity in the licence.

by an electric

--,."_

downhole

motor, which

of other fluids.

operates without the need to rotate the drill siring.

EPIC contract
:A:nall-in contract for engineering, procurement,

Saturated or under-saturated Exploration is the process of identifying a prospective hydrocarbon geochemical, geological region and structure, and geophysical (seismic) mainly by reference to regional, and specific, surveys. An exploration well is a well drilled to test

oil. Fat oil could, for absorbed

example, be saturated with gasolines

A cl~mp

usedi~dr;iling

rig t~tch

-",

..

'-

on to and grip

installation and construction. In the many variants such as EPCI etc. "I" normally signifies inspect or install.

from a gas slream in a refinery. The oil is lean when the gasolines have been distilled out again, and the oil recycled to the process. See lean gas.

drill pipe, casing, etc. when lilting them.

Emulsion
Water droplets, each encas~n an oil film so that

Equity crude
Crude oil belongi ng di redly to the equ ity participant in the oilfield, as opposed to Farmer's crude, royally oil, government penicip« tion crude, etc.

they can not break free to separate by gravitation. An emulsion treater normally uses heat to break down this resistance.

a potential, but unproven hydrocarbon trap or structure where good reservoir rock and a seal or closure combine with a potential source of hydrocarbons. relative movement. There are various causes of fault fractures, such as the movement of tectonic plates relative to each other. In oilfield terms a fault block is a compartment of a rock formation surrounded, or partly surrounded by faults, which (colloquia!). may have sealed
In

-_

..

,--

Tech~iquessometimes

described as tertiary

EXPRO
Exploration and production

recovery. They include, for example, injection of surfactant or polymer into the reservoir, fire flooding, steam injection, and microbial action.

hydrocarbons

separately from

the rest of the formation.

Field
-------------------

See oilfield. A field may also be a gas or gas

(b) Polymer Flood

t

I
~m~~lerd~~ EI~ttrc'm\!~etlc

0>, ~
- Polymer

0;1 --

---:

f'il>Soluiion

;;J ------sweep flood

1~
+
~~~eabililY

condensate

field.

Fill
In Geology, the appearance and hence the composition and characteristics of a rock formalion. Cores are taken from a well, for example, so that the reservoir facies can be studied. A facies trap for hydrocarbons is one in which the seal or closure is
--------------------

See Line fill.

F6nell"li:tead
See bead.

EOR improved with a polymer

efficiency

provided by a change in rock characteristics, a form of stra ligraphic trap. In welding overlapping surfaces, the weld makes a fillet in the angle formed by the end of the overlap. Landowner's royally-in-kind>

Source: SREA

J
ETIBIE
mechanisms

Filter cake/fiiltrate
Build up of mud solids or filtrate on the wall of a well. This helps seal and stabilise the rock face, but

EOR recovery

Source: Oil & Gas Journal

J

See MTBE.
--------------

Sm~tIamounts

Entrained oil/gas
of oil, which may form part of a gas stream, due to the difficulties of separation at

A bend

Expansiion

loop

In a normal farm-in, a company acquires equity rights to a concession by drilling a well at its own cost, for the benefit of the company or companies farming-out. For example, it may drill one well to a

too much can cause sticking of the drill string. See differential pressure.

or loop installed in a length of pipeline to

absorb longitudinal expansion with changes in outside temperature, the passage of hot oils, etc.

LOOK

Il.T

THINGS

D!HERENHY

Page 36

Oil & Gas Handbook

.>.!(.

BANK Of SCOTlAND
CORPORATE

GLOSSARY
!Fines
Small particles of rock or other solid.

!Fingerprinting
Crude oil is a mixture of hydrocarbon components or fractions and other minerals. The composition of

!Flange up
To connect, to complete, to put into operation.

Drilling/workover saml-submerslbla

_-

Semi-submersible F.P.F.

!Fingering
Uneven advance of water and/or gas towards an oil well due to inconsistent permeability tend to be excluded. in the reservoir. When the finger reaches the well, oil will

each crude is different, leading to differences in gravity, etc. Nowadays, the source of a crude - e.g an oil spillcan be determined by analysis known as 'fingerprinting'.

!FlareJ'flare slack
A vent foro·burning off hydrocarbons,

off unwanted

gases

~~·toburn

which due to temporary

malfunction or maintenance of process plant, cannot be safely stored or retained in process vessels. A flare stack is the tower, from the top of which, the burn-off can safely take place.

!Fire flooding
A form of enhanced oil recovery in which otherwise unproduceable heavy oils are ignited in the reservoir. The cracking effect enables the resulting lighter fractions to be recovered.

A typical floating production

system

J

!Flash off
_.
----

.... _.----,-.,,----

To vaporise or boil off a hydrocarbon

by heating.

!Floating production storage and offloading vessel (!FIPSO) A versatile and relatively low cost floating
----

!Fish/fishing
Any unwanted object down a well, commonly the Fingering lower end of a drill string that has broken off. Fishing is trying to recover the fish, using various attachments to the drill stem or wireline. These attachments are known as fishing tools.

!Flash pOint
The lowest temperature at which a vapour will burn or explode when Ignited.

production production

facility for small, difficult, isolated or deep facility.

water reservoirs. See diagram of turret moored

J

!FloaUfloating

casing
----

!Floating roof tank

A method of inserting heavy lengths of casing into a well without overstressing join ts and seals due to the weight of the total string. The bottom end is

Crude oils (and some other oils) are normally stored onshore in tanks, of which the roofs float on, and are in contact with, the oil, thereby avoidinq a cavity in which volatile and dangerous gases could build up.

--~--

!Finger boards
Th"ese comprise of drill pipe. a rack forth~ uppe-r" ends of

stand-;

!Five~spotwaterflood
A standard method of development, production where a well is surrounded by four water

sealed, and the hollow string then becomes buoyant in the drilling fluids in the well, which are gradually displaced. Afterwards, the seal is drilled out and the casing cemented into place.

!Finger pier
A jetty at right angles to the shoreline, so that tankers can moor to load and unload in deep water.

injection wells to sweep the maximum amount of oil towards the producer.

IFI0at-ouUfHotationJ'flo!tation

can

The launch or load-ing out of jackets or other

A Fixed-bed catalyst remains in place in the feedstock, as with a fluid catalyst. Pier head Tidal shallows

!Fixed-bed catalysUfluid catalyst ._-_ ..
".

!Floating production

facility

(1F1PiF)

structures for installation offs hore, on a flotation barge or other vessel, or in some cases using their own buoyancy. Flotation cans are hollow tanks attached to a jacket to assist buoyancy or help control the lowering to the seabed.

A vessel designed to provide offshore field production control and processing for smalierfields, more cheaply than a fixed platform. The tension~leg platform is specifically designed to meet this need in deeper waters, but lransporl barges, semisubmersible dnlling rigs and tankers are all capable of modification for the purpose, depending on water depth and environment. See diagram opposite.

reactor vessel rather than being pumped in with the

!Flame-jet drilling
The use of a rocket-fuel flame to penetrate rock by fusing (melting) it. The flame also glazes and seals the walls of the well with fused rock.

-----_

!Flowing bottom-hole
... ".

pressure

Pipeil nelroadway

BoUom-hole

pressure measured at a given flo;;V--

rate.

!Flowline bundle
An integrated assembly ofprod~Ziion a subsea/satellite pipelines~nd hydraulic and/or electrical control lines, connecting weI/to its parent installation.
lOOK AT THINQS D-IFFER£N'fLY

A finger pier

J

Page 38

Oil & Gas Handbook

.>l<. BANK OF SCOTLAND
CORPORATE
._--------_

_-.-

GLOSSARY
Flood!
To let or pump water into ballas/tanks. flood and fire flooding. See water

Formation

damage
by water

Gas cap/gas

cap drive
of associated gas in the of

Gas iill1ljecll:iOIfll
A secondary recove!}' method by which gas is injected into and passed through the reservoir to maintain pressure and/or entrain heavier hydrocarbons left behind by primary production. The reservoir can in this way also serve as storage for produced gas until the reservoir pressure can be reduced, and the gas sold.

Damage to the reservoir rock arou nd a well d ue to, 'for example, plugging with mud, infiltration from the well, crumbling rate, etc. under pressure or high flow

The natural accumulation

top of an oil reservoir. Gas cap drive, or primary production, utilises the pressure and expansion this gas to drive the oil to the surface. Sometimes called depletion drive.

FOo'WmeterJ'flo'W chari

A meter
24

used tZ-measure

the rate at which a fluid chart or flow graph See log.

passes a given point. A flow provides a permanent hour period.

graphic record, usually over a

......

_--_ .....
molecular

A hydrocarbon substance See catalytic cracker. composition, substances, extracted

of specific

Producing wells

Gasiin pDace
See in place.

or a closely related group of such from a crude oil or natural by distillation In a

Gaskiick
Increase of downhole pressure above that exerted by the column of drilling fluid In a well, allOWing gas to escape to the surface. If not controlled, this could develop into a blowout.

Flush phase
The primary production phase of a reservoir.

gas stream, predominantly fractionating

tower or fractionator.

Foam bUanke't
Afire-protection device. Inert gas foam is floated on of the surface of liquid hydrocarbons In storage to exclude contact With air and reduce evaporation combustible fighting hydrocarbon 'fires. gases. Foam blankets are also used in

Fracturing
The process of cracking open the rock formation around a well bore 10 increase productivity. This is normally done by applying hydraulic pressure down the well bore. A gas cap drive

Gas lift:

J

Increasing decreasing

the production flow of oil by injecting the average density of fluid and the pressure gradient and flow rate. The

gas down a weI/to mingle with the oil, thus increasing

Fueloiil FootageJ'iootage
Penetrati;n-rate be a form of remuneration

rate
rate may also under a drilling contract.

The bottom or 'heavy end' of the barrel after removal of middle distil/ales and lighter {ractions. There are various grades of light and heavy fuel oil,

in drilling. Footage

Gas chromatography A very accurate laboratory method of separating
and analysing the components hydrocarbon mixture. of a volatile

gas can then be recovered and re-injected

Gasohol A motor fuel that includes a proportion of plant alcohol processed from vegetable waste. Gas oil A middle distillate product fraction.

Often referred to as ROP (rate of penetration).

Footprint 1. The limit of radius of action of an underwater vessel or veh lcle,
2. The lrnpact/lmpression jack-Up facility. on the seabed of a

Gas column
See oil column/gas column.

Gas condensate Gamma ray log/gamma-gamma log
See log. Light hydrocarbon frac'!ionsenirainedin production, which condense gas" into liquid when

Gas/Oil ratio (GOR)
The proportional occurring expressed amount of gas to oil liquid from a reservoir, usually in production

Formation
A rock deposit or structure appearance. of homogeneous

brought to the surface. Changes in reservoir pressures as a result of production may cause the hydrocarbons to condense in the reservoir, when See much of it may then become irrecoverable. retrograde condensation.

as cubic feet per barrel.

Supervisor

of a pipelaying

crew.

tOOK

AT

THINGS

DIFFERENTLY

Page 40

Oil & Gas Handbook

'>!<r BANK OF SCOTLAND
CORPORATE

GLOSSARY
Gasolines
See page~ 136, 147, 150.

Geophysics/geophysicist
PhysiCS applied to the measurement of the earth and the study of its composition. A geophysicist in the oil and gas industry usually specialises in the interpretation of seismic survey data.

Grass~roots
,,-

_. ----Oescri ption of a refinery or other development infrastructu re, i.e construction on a greenfield site,

Group shoot
A seismic survey shared by;~~~~8.1sponsors.

project where there is no existing plant or

Gasser
A.gas

Grout/grouting
Concrete filling the cavity around egoste~lpiles of an offshore platform, as a result of a cementing

we/I.

Gravel pack Geothermal gradient
Where the prod~~ing formation ina~~ij is The increase of temperature with depth in the earth's crust (about 2 crumbling or caving into the well bore and plugging the perforations, the cavity so form ed is fi lied with fine gravel. This supports the formation and keeps potential of an the interior

Gate
A pipeline valve.

operation similar to setting casing.

OF per

100 feet).

Guide base/posts/lines
The seabed framework or template throughwhicha subsea well is drilled. It is fitted with guide posts from which guide lines extend to the surface. This enables the wellhead to be located ready for drilling, and for installation and control of. For example the blowout preventer.

Geochemical

survey Gin pole
A frame used as a vertical su pport for hoisting. The highest point of a drilling derrick is usually the gin pole.

Analysis of the hydrocarbon-bearing

of the

well clean.

area by studying shallow cores and subsurface water for evidence of seepage or kerogens.

Gravimeter
A.n instrument thai Ill",asures minutevariation-;'-Inthe earth's graVitational pull at different surface points due to the density of the underlying rocks. A gravimetric survey uses this principle in the search for sedimentary rocks, which normally have a relatively low density.

Geology/geologist
The study of the history of the earth and its rocks. The geologists in the oil and gas industry tend to specialise in sedimentology, palaeontology and other branches of the science relating di rectly to the pros pecti ng for hydrocarbon deposits.

Gooseneck
The curved connecting pipe or nipple on the drilling swivel, to which the rotary hose from the standpipe is attached.

Gumbo
A sticky, clogging mud formed in some wells by the mixture of drilling fluid with certain types of shale.

Graben Geological column/geological eras (ages)
This is a name given to the vertical succession of geological deposits from successive eras, found in any specific place. These columns vary considerably, but a general reference sequence is shown on pages 100- 103. Ch iefly of interest to oil and gas geologists are those showing evidence of life-forms deposited long enough ago to have generated hydrocarbons. A structure which has become displaced downward from its original geological setting.

Gravitometer
An instrument that measures differences in the specific gravity of liquids, and is used to identify interfaces between batches of different products in a pipeline.

Gunk
Th"'8.cc~mul8.tiona until it is pigged rubbish, rust, detritus and petroleum deposits that accumulates in a pipeline

Gun Gravity platiormJ'structure
Offshore platforms,
...... _--

etc. which rely on weight alone

1. 2.

See pe~io~~iio;;: A source of sound for seismic surveys.

to keep them stable and in place. They are frequently made of concrete with steel as a major component. Steel gravity structures are also used, Structures of such size are floated into position, the buoyancy being provided by hollow chambers in the

Gusher
An old name for a successfuloii~~/1 ;vith a hig h pressure leading to a blowout. Now uncommon.

Geophones
surveys. See hydrophone.

----_

..

Sound wave receivers primarily for onshore seismic A graben type fault trough

__

..

"

..

__

large base of the platform. Subsequently, these are

J

flooded with water and can be used for oil storage. See diagram of production platform.

Geosyncline
See syncline.

Grieil' stem
See kelly.

Hanger
See casing and i;J.6ing.

i.OOK

AT

THINGS

DI!'FEREf.!TE.V

Page 42

Oil & Gas Handbook

.>i(o BANK OF SCOTLAND
CORPORATE

GLOSSARY
tmoriz@ns
Tensioning a string of casing while cementing by See crude oil, The formation at a given depth in a well, usually identified by geological age, egomiddle Jurassic horizon
----

A filler bead - see bead.

letting it hang from the wellhead. This helps to offset later expansion due to the passage of hot fluids.

Hedging
See derivatives.

Inserting a branch line into

a pipeline or vessel-th~t

Horizontal
Suspending drill string or casing from slips or wedges placed in the rotary tab/e. A helicopter landing deck or onshore landing area. Atec:llniqLJe

for deviating

drilling
wells through up to 90°

is still in operation.

from the vertical, but more importantly, horizontal to the reservoir strata. While the main purpose of normal deviated drilling is to reach remote parts of

Huff and puff
A steam-injection method

a enhancecToil

recovery.

Hazard z@!I'IIe
An area where special safety precautions apply. The part or parts of geological structures which are nearer to surface datum/sea level. J-fydrocarbons tend to accumulate in highs. The term is also used on a regional basis, where rocks of one geological over a broad area. A process vessel, which typically uses the passage of one fl uid throug h a set of internal tu bes to heat up or cool down another fluid in which they are immersed. There are many different designs and uses. era are nearer the surface

a reservoir, with horizontal drilling the purpose is to keep the well bore within a given productive horizon or formation, to Increase potential productivity. and multiple completion commerciality of a well, The diagram illustrates the potential of horizontal drilling technology to enhance the

Heading
Intermittent flow of oil from a we/I, usually from a lack of reservoir gas pressure.

Cyclic Steam Soak "Huff"

Steam Injection

...

_----_

.....

The quantity of hydrocarbons of a plant.

that is retained, in

normal operations, in the process lines and vessels

Steam

See tracing.

H@ne temperature
...... _---_ ..

"Puff" Oil and water recovered

Formation temperature at a given depth in a wei/. is installed

The vertical motion of a floating vessel or platform with the waves. A heave compensator

Ho@ks
The part of the travelling block of a drilling rig from which the swivel and drill string or other load is suspended. Horizontal drilling - Source: Sperry/Sun

on floating drilling rigs to counteract this movement as regards the drill string and marine conductor.

J

---

Heavy or residual fractions of a feedstock after The activity following offshore development installation during which all connections and services are made operable for commissioning start-up. and bottom or "heavy end" of the barrel.

Oil sand

distillation, etc. Sometimes referred to as the

water

Steam, oi I and

Horst
A structure such as a fault-block, which has become A cyclic steam soak - Source: SREA up-thrust from its original geological setting.

J

LOOK

AT

TH!NGS

D~FFEf!E.NTlY

Page 44

Oil & Gas Handbook

.>i(- BANK Of SCOTLAND
CORPORATE

GLOSSARY
Hundred year storm
For construction design purposes, the worst weather conditions that can be statistically predicted within a hundred year period, principle to a diving bell. HyperbariC chamber is also the name given to a pressurised surface chamber or habitat in which returning deep divers are gradually reacclimatised to surface pressure.

Induction log See Log. Inert Gas
Chemically unreactive gases used to flood
-;;----,:--

Inside prevenler
A blowout prevente; that isfitled to the inside of the drill string,

Hydrates
Compounds of water with another substance, e,g

compartments where there is fire or imminent danger of fire, Inert gases are also used in the mixture breathed by divers.

In situ combustion See enhanced oil recovery Instrument pig
.

natural gas in wells or a pipeline, They may cause
plugging or corrosion.

A pipeline pig fitted with monitoring and gauging

Inertinite Hydrocarbons Organic compounds of carbon and hydrogen. See
page 147,

devices, used to check for damage or distortion of the line.

Ice platform

.......

-

_ ...

See kerogen

An ice island strong enough to support drilling operations, artificially created by sprayi ng sea water to freeze on top of an exisli ng ice s u rface,

Hydrocrackiing/hydrc:tforming Catalytic cracking and reforming processes using
hydrogen and a catalyst

Inim driiUing Production wells drilled between existing wells to increase recovery of hydrocarbons.
-~-----

Interlace
--------..

term is widely applied in the industry as in other industries. However, usage specific to oil products is in the interface between two batches of different products in a pipeline system. Unless separation is critical and maintained by an intervening pig or sphere, the products are allowed the small amount of mixing that occurs, and the combined product or interface is drawn off separately at its desti nation.

Impermeable

rock
will not flow

A rock with restricted or poorly communicating pore spaces, such that hydrocarbons through it.

Inhibited mud .. __ Mud containing chemicals to prevent loss of water,
.... -_.,_

.",._".

Hydrodynamic
In the oil and gas industry these studies apply mainly to the migration of hydrocarbons earth's crust in the

which could damage surrounding formations, and cause build up of filter cake in the well. See

Impressed current protection
The active or Anodic method of preventing corrosion in submarine steel structures. Unlike the

differential pressure, Injection well (injector)
Sometimes called an input or service well. A well through which water or gas is injected to maintain

Hydrophones
The instruments that detect returning sound waves in offshore seismic survey/sonar operations.

cathodic protection system, the self-potential of the
structure is counteracted by passing a large low voltage current through the surface to be protected.

Intermediate See casing. Interruptible

string

.............................

_ _----..

reservoir pressure and improve 'sweep' or a real recovery of reserves, In place
Description of the total hydrocarbon content of a

gas

HydrostatiC pressure/head
The pressure exerted by a column of liquid at a given depth, such as that exerted by drilling fluid in a wei/.

Inclinometer A downhole instrument for measuring the angle
from the vertical or slope of a deviated wei L

A supply of gas to a customer which can be reduced or cut off in specified conditions of short supply or emergency,

reservoir, as distinct from reserves, which can be Independent producer
recovered or produced. Oil or gas in place (OIP, GIP) before the start of production is known as oil or gas originally in place or initially in place, (eq, STOOIP = stock tank oil originally in Place, GIIP = gas initially in place). An expression describing an oil producer who sells their production on the market, not having their own

Hydrostatic testing
Pressure testing vessels by pumping water into them.

Interstitial water See connate water. IOPCfund
The International Oil Pollution Compensation is a worldwide inter-governmental from laden tan kers. Fund organisation

Hyperbaric welding/chamber
Welding under high pressure conditions, i.e. subsea in an air chamber (hyperbarIc chamber) similar in

relining facilities. It has come to be appl ied to all exploration and production companies apart from th e large vertically-integrated ones, and those
nationally owned or controlled.

providing compensation for oil pollution damage

Page 46

Oil & Gas Handbook

*. BANK Of SCOTLAND
LOOK AT THINQS D~H!;:rlt;"nt'f

CORPORATE

GLOSSARY
Dnllernatl«:mal energy agency (lEA)
Organisation of major oil consuming countries with a function analogous to OPEC (q.v.).

Jack rabbit
A gauge which is run through casing or i"ubing before use to check for correct sizing and freedom from obstruction or distortion.

-

management structure and voting procedure approval of operating programmes and budgets cash contributions, costs and accounting control and custody of joint properties and equipment Sale risk, default, withdrawal, assignment, etc.

Isobath
1. A line con·~ectingpoints line. 2. In mapping subsurface geology, a line connecting points on the top of a formation of equal depth below surface datum/sea level. on the seabed of equal Drilling rigs, production barges, etc., which once floated onto location, can raise themselves clear of the water by jacking themselves up their legs. They then offer the operating advantages of fixed platforms but unlike piled steel structures, their stability and load capacity depends on the strength and stabllity of the seabed and closely underlying strata. depth below the surface - a seabed contour

Kelly
The square section pipe at the top of adrilf string (sometimes hexagonal). Another name is the grief stem. It fits into the squared hole in the rotary table, which in turning It, imparts torque to the drill string.

disposal of petroleum confiriential.ty, force majeure, Iitigation, etc.

---_-. __ ._-_._----_--. __ ..._ ..... A common form of risk sharTng in -oil ancfgas-----

operations, especially exploration and production. Although they may have many of the characteristics of partners hips and are often referred to as such, they are usually legally constiluted specifically to avoid parlnership implications. See joint operating agreement. An emergency blowouipreventervalve between the
SWIVel

Isochore
A contour connecting points of true vertical thickness of strata, reservoirs or other rock units.

inserted

and the kelly

.liars Isomers
---

Kelly spinner
A mechanism attach~cJ to the swi~~iforrotatin-g-th-e kelly in or out of the top joint of drill pipe, e.g when adding another stand.

Downhole tools inserted in the drill string when fishing, used to jerk or [ar tho fish free by repeated sudden blows. They may also be used while drilling to avoid the drill string becoming stuck.

Compounds, which have the same number and types of atoms in each molecule, but differ in molecular structu re, ego butane and iso-butane, octane and iso-octane, etc. See page 147.

J1P'lJIels
Fuels produced to specifications for jet propulsion(aircraft) use.

.let sled
See bury barge. A line joining points of equal stratum thickness. Reservoir formations are sometimes mapped in this way.

An automatic valve atthe lower end of the kelly,

JlJIg

._--- ..,_ ... ,-_."._-----

which closes when the kelly is disconnected from the drill stem, thereby preventing spillage of mud.

1. A geophone. A Jug hustler is the mem ber of

J@int

-

__ ._---,--,-----,--

a land seismic survey crew who places and retrieves geophones.

A single length of pipe. Coupled or welded to other lengths, Joints become a string. The term joint may also refer to the couplings or Joints themselves.

Ker@gen
Organic material from which oil or gasm~tllr~s-with time, under burial temperatures and pressures. They differ with origin, for example marine seaweeds, or terrestnal trees. Of the marine types, the presence of algal sapropel and waxy sapropel in a formation is prospective for oil, while of the terrestriallypes, vitrinite is generally prospective for gas, and inertinite is not prospective. In addition, the degree of reflectivily of vitrinite samples is used as an I nd ication of the matu rity of a formation for the presence of hydrocarbons.

2. Artificially made cavern storage in a salt rock
formation.

Joint operating
"-"--_

....

agreement

(J10A)

Junk

-_'--'------_ .._------

The document governing operations in a Joint venture, 0-[ prime imparlance to all participants,

1. Any small unwanted object lost down a well. condition tubulars, for instance, are no longer fit for their intended use.

2. To discard or scrap unwanted equipment. Junk

J1acket
1. The leg structure of an offshore steel-piled platform. 2. A concrete coating applied to add weight to submarine pipelines. See cement.
---

as under it they secu re, or may lose, rights to production, etc. A typical joint operating agreement will inc!ude sections to cover most or all of the following topics: scope, duration, legal status interests, rights and duties of the operator and other participants

Page 48

Oil & Gas Handbook

*.

lOOK

AT

'fH1NGS

DjfFE.RENTlY

BANK OF SCOTlAND
CORPORATE

GLOSSARY
Kick --See gas kick. Kick off
To start the plan ned deviation of a well from the vertical. The depth at which this occu rs is th e Kick off point (KOP).

f
Licence
1. A rig he-t e-to-e-x-p-:-lo-r-e--=rC-o-r o-r a-n-dC-/C-p-rodu~~

Line fill
---

The volume of oil or gas that is ~eeded to fill a pipeline before any deliveries can be made, thereby representi ng a permanent inventory requirement.

hydrocarbons

Issued by a government agency,

where rights to underlying minerals are not the property of the landowner. Exploration, drilling,

Landing casing Lowering a string of casing into a well, to rest on
-----

development,

etc. may be licensed separately, of acreage after an policy of ::..::...-The study of rocks a~d hence the desc~ipti()nofdifferent formations encountered by a well.

over varying lengths of time. Many licences require part-relinquishment initial period or primary term and make the operations subject to the hydrocarbon

Uthology

the step in the hole, where drilling at a smaller

Kill/killer well
ur;r:;Qrmal operations, to kill a flowing well is to inject mud, to the density needed to overcome

diameter commences.

Lay barge/pipelay

reselVoir pressure, thus stopping the flow.

A vessel designed

barge

the country concerned.

for welding together pipelines

2. Various other forms of perm it or authorisation
affecting operations.

Live oiil Crude oil co~taining vol~tile gases. Lloyd's

2.

Getting under control a well, which has blown out. A killer well is one drilled near a blowout, and deviated into or close

and laying them on the seabed. A reel barge lays previously connected lengths of pipe from a reel. to

to the blowout well,

LIFO
The last-in-first-out meth~d~tinventory valuation, chiefly significant in the oil and gas industry because historically it was the basis of US computations. Pipellne Sea-bed
,'(/,2.'

Chieflyre-fe-r-s-to-t-h~certifica lion autho~itY. -------

inject mud, etc. to kill it This is usually because the blowout has caught fire.

Local drainage
The movement ~f re-se-IV-o-ir-f-Iu-jd~in-th;'; immediate vicinity of a flowing well.

tax

Kitchen
A colloquial term for rock deposited in conditions rich in organic sediments, which with the necessary burial history has become a significant source of

/,//0

2«/

Z'/Z,/2?c//c ..,,>77/;, '

Lifting 1. Collection of a production shipm~-~t of crude oil,

Location
The si-te-o-f::-a-w-elccl,-or operation. ~-ther

hydrocarbons. These may have migrated to traps
elsewhere.

A semi-submersible

pipelaying

barge

J

etc. at the point of sale. Also covers bulk movements of any hydrocarbon example contract entitlements. against, for

Log/logging

etc.

There are variou~<-lpplic-a-tio-n-s-, -bu-t-chieffy:

A drum

Knock out drum
or other process vessel used for

rapid separation of water, etc from a stream of hydrocarbons.

Lean gas Gas undersaturated

2. Stimulating production flow from a well.
with hydrocarbons, and able to See gas lift.

1. Written chronological records such as shift logs, maintenance logs, tour sheets and mud logs
(which also record cuttings recovered from a well).

absorb more. See fat oil/lean oil.

ILight crude

Generallyappl-C-ie--cd--:t-o -c-ru--cd-e-o-c-il APi gravity of -w---:ith<-l~·

Knuckle joint
Auniversal joint in a drilling tool for deviated drilling, which enables the bit to rotate at an angle to the existing borehole.

Lease
In the oil and gas industry, a legal instrument giving the right to explore/exploIt acreage, primarily onshore. Lease operations has come to mean any

-2. Various devices for taking measurements of formations, physical conditions and fluids encountered by a well, together with the records
produced by them. The main types of well logs, electrical, magnetic, mechanical, sonic, nuclear, etc. are listed on pages 11 7-11 9.

30° or over. See American Petroleum Institute. Light ends
The least dense, m;~~~olafl'le parts of a crud'; oil

exploration/production Lens

field operation.

stream in distilla tion.

A body of potential reservoirrock frequently lens shaped.

enclosed on

Lost circulation
Failureto recover-to the surface all the rlrilliflgfiulds at the same rate as they are pumped down a wel/, usually because of loss into surrounding formations.

all sides by sealing strata, so called because

Page 50

Oil & Gas Handbook

.*. BANK Of SCOTLAND
CORPORATE

LOOK

AT

THINGS

DIF,e~!n::~TI.._Y

GLOSSARY
Casing would normally be set through the relevant
formation before proceeding.

Malllrgiill'llal Ii. well, development

capacity cranes have meant that modules can be etc, of which the commercial See distillation, cut, etc. Fewer, larger, more efficient and less costly to the project.

profitability is in doubt.

LNG See natural gas.
The collar, which fits into the rotary table and

Migration 1. Hydrocarbons
through which the kelly passes. petroleumgases - propane and A structure placed on poorly consolidated, soft or unstable seabed as a footing for jack-up rigs, etc.

are often found in formalions

---_._ ..,--, ...

other than those in which their organic source was deposited. This movement often over considerable distances is known as migration. 2. A process applied to data recorded, for example ina 3~D seismic survey, to adj ust for the effects of the oblique angle at which it was gathered.

LPG
Liq~ld/Liqliefied butane, which are readily held as liquids, their

vapour pressure being close to one atmosphere.

Maturity
The function of burial pressures, temperatures, and time, which determines whether a source of

MiDRidiall'cy
See darcy.

hydrocarbons will provide oil or gas. Magnetic
A~~n desi;u~tive

particle testing testing method whereby the

Mazut
Russian name for residual fuel oil.

Mill A bitfm cufti ng throug h steeioiJstructions fish. Mill scale

01 & 02--W(;lltLead

I!d~1 & west

Q3-Se~arallon

su~ha~

O~-CQlTlpH!SSCr & oil expert OS-·-NGl & rer(jg~ratioll 06- & 16---~flflc'ilJl'l {:l)mprl:l~Sors

Ol-~··Acwmmodatjon
15- Temp. accum/workshop

object is magnetised and minute particles applied externally. Cracks, etc. can be discerned at the surface. Welds in wellheads, etc. can safely be examined in situ.

17-Accommodatlon
2f·~-~h!ljrll;!(;k OB-MeG mom.& uhliht's

Measurement

while dllI'liliinSi

Oxides, which form on the surface ofa sieel-~ate after heating during manufacture.

----

18--SwBc,," gear ~ rower qeneraucn
28-ExhOlu(;! slack 1 j (Ii l2-S~~Gdi~g module west & eas 13 & H-Drimn~ mouule west & east 2~ & 22--SuIJ-S-LnJchlfc west & east 3-1l-W(Jrk~h[Jp/lilh 3~ ~ J2---0crric~ 57 & 58-MocMe west & east slippal1 structure: &

(M.W.D.)
Downhole instrument systems used to monitor and control continuously the direction of the wellbore to

A preliminarYexploratl';-;:;te~hnique
Make up/break
To assemblelscrew

MagnetiC survey

----------------_

west

east

based on the

the high degree of accuracy needed by, for example horizontal drilling. Mwn tools can also provide Information on the drilling mechanics and

An injection/displacement

process developed

relatively low magnetic field of sedimentary

rocks.

recently to obtain greater oil recovery in many

reservoirs. Miscibility is the ability of two or more
substances to mix, without the existence of an interface. The fluids are injected together into a reservoir in a

Module configuration (Brae 'B' UKCS)
Source: Marathon Oil . Molecular

J

out
out is the opposite.

may also contain a gamma ray sensor.

together the sections of joints The boundary between the offshore mineral

of a string of pipe. Breaking

sieve

secondary or tertiary recovery programme, for
example gas and LPG, or carbon dioxide followed by water.

A process of sepa~ating hydrocarbo~7;:~Zii-;;;;~:~tc. by passing the feedstock through successive absorbent su bstances, wh ich offer d iHering degrees of resistance to its passage.

Manifold
An assen=;blyo't'pipework with several branches to gather fluids from, or distribute them to, different poi nts. It us ually incorporates valves so different flow patterns can be selected.

extraction JU risd ictions of two states, by convention drawn equidistant from the nearest points of land on each side.

Metamorphic

rock
offshore construction, as far as possible selfcontained, designed to be lifted into place and connected to other modules offshore. Modern large See single buoy mooririg~-----------------------

Rock-w-hTchunderthe action of pressure, heat and water has become dense and crystalline, egoslate, gneiSS, marble, etc.

LOOK

A"f

THINGS

!J~FI'"l:::Rl=-l'-inY

Page 52

Oil & Gas Handbook

il

I

'>i(o BANK OF SCOTLAND
CORPORATE

GLOSSARY
M@n@po«:li
addition, the mud is continuously circulated down to pTatform, resting on a single the bit, and returns in the annular space outside the drill string, bringing with it rock cuttings for inspection and for the purpose of keeping the well clean, It is also engineered to maintain a thin protective layer of filter-cake on the borehole wall, An opening
III
-- - -_._------------------

MuRtiphase

fD@W'
Gas originally discovered III a reservoir, as distinct from injected gas. See associated gas.

A small offshore

Simultaneous flow of liquid and gas, or of different liquids, through a pipeline or other vessel (eg. oil/gas, gas/water, oil/water).

columnar leg, mainly for small satellite developments in shallow waters,

Producing a reservoir by means of its natural pressure - without pressure maintenance, (Also flush phase, primary production, etc)

the floor of a platform or base of the

without excessive weight, which would decrease the weight on the bit and hence penetration (see drill string). Excessive mud weight could also possibly lead to differential sticking and formation damage. Mud is pumped from the mud pit (or tank) via the standpipe, rolalJl hose and gooseneck to the swivel, and into the drill stem. On return from downhole it is recovered and rock cuttings removed by the shale

Well fluids, namely, oil, gas and water are separated from each other In a separator and the resultant individual fluids measured using conventional single phase meters (vortex/orifice/turbine flowmeters).

hull of an offshore vessel giving access to the water below through which, depending on the vessel's function, the drill string, risers, or divers, etc. can be lowered in calm surface conditions, inde pendent of sea slate,

fNiaturra9 gasfNGL's
Natural gas is primarily Methane and also some Ethane with small quantities of entrained heavier fractions such as propane, butane, etc. These, and others, are readily condensed from the natural gas flow and are known as natural gas liquids, or NGLs, as distinct from liquid natural gas (LNG), which is methane/ethane state. refrigerated to liqUid

Over the last ten years, reliable multi phase metering capability has been developed.

a is based

on the successful integration of conventional metering techniques with new multiphase technologies and allows well fluids to be accurately measured. This has the potential for dispensing with the need for individual flowlines/pipelines the resultant cost savings, Savings can be particularly significant In a subsea environment. MlIJImtupfie c@mpgetio!l'1l A well perforated and completed to produce simultaneously but independently from more than with

A heave compensator, Fitted to cranes, etc. to counteract vertical motion caused by the sea,

shakers before re-circulation, To mud up is to increase mud weight and downhole pressure. To mud off is to seal off a formation with heavy filter cake. A mud log ISthe record of drilling parameters and analysis of cuttings recovered. The composition of mud used in a well is normally supervised by a mud engineer.

See octane rating,

The time that elapses between successive occurrences of any phenomenon, such as two successive wave-crests or the resulting movements of heave, roll etc. of a floati ng vessel.

The tubular hole In the floor of a drilling rig in which Ihe next stand of drill pipe is stored ready for addition to the drill string, The seabed, or bed of any body of water where drilling is taking place. Methyl tertiary butyl ether, A hydrocarbon product significant as one of the major lead-free octane enhancers for gasolines. See anti knock compounds. ETBE (ethyl tertiary butyl ether) has similar properties.

one formation. Also known as a multipay

well.

Mullet
An inexperienced investor in oil exploration.

A mixture of natural and petroleum based synthetic rubber, which is highly resistant to chemical attack.

Mu6tilaterral (Well)
------

A well, which has two or more production/injection arms, connected together downhole and subsequently produced via a single weI/head. The

----_ ..._._ ..

A collective name given to a range of distillate fractions covering heavy gasolines and some of the lig hter kerosene distillates. Naphtha is frequently a product of primalJl distil/ation, being the major refinery feedstock for gasoline, and aromatics manufacture.

_

.... -

The net revenue from sale of crude oil, products, etc. after deduction of all costs occurring downs/ream of the point of nelback, but not the cost of the crude, etc. itself. Thus the netback on crude oil at the production loading po.nt might be the price of the refilled products it represents, minus refinery costs and losses, and minus transportation costs and losses and also minus relevant taxes, all incurred after the point of loading.

-------

Mud is the name given to drilling fluid, which is mainly a mixture of water, or oil distillate, and heavy minerals such as bentonite or barites. Mud is pumped into a well at densities calculated to provide

concept reduces cost by the requirement for drilling only one access hole to the top at the reservoir. This can have significant additional cost savings in an offshore environment, where there is usually a limited number of surface slots for drilling. See horizontal drilling for diagram.

a hydrostatic pressu re sufficient to overcome downhole formation pressures (see gas kick). In

lOOK

AT

THINGS

DIFFERENtlY

Page 54

Oil & Gas Handbook

.)i(.

BANK OF SCOTLAND
CORPORATE

GLOSSARY

r

--------------

A short length of pipe with connections Tubing strings ends. To nipple up is to assemble especially a blowout preventer. A nipple

at both chaser is

Ancillary or service plant, which is distant from the main process plant, ego Water treatment, generation, laboratory, etc. applied to service installations at refineries. In It is sometimes power

pipe valves, etc.

a materials man whose job it is to obtain and have ready for shipment to the rig the various tools, supplies, etc. needed.

Obligation
a concession.

well
as part of the process of earning

general, particularly

A well undertaken

Offshore (Oal.IM.)
responsibilities ship's captain.

insl!:allaUon managl!!llf'

The colloquial name for conventional wellhead production beam pumps.

onshore

OBOwessl!!lU
An oil/bulk ore carrier, a versatile form of tanker.

The person on an offshore platform with statutory for safety, etc., similar to those of a

Octane
components in a conventional steel platform jacket.

If'alti!l1lg
octane number (RON) is used as a of gasoline.

The research There are several on each leg and also at the meeting of cross-members.

0.1.1. ••
Oil Insurance Limited.

measure of the anti-knock

properties

Premium grade motor gasoline for instance, is normally blended to produce 98 RON and Regular about 92 - 94 RON. Clear octane signifies a RON Drilling mud in which the solids are suspended' operational technically detection advantages, particularly

Ina-

Simplified

diagram completion

of a multiple-zone - Source; Whitehead

Non desirl!.adiiwe testing

(NDT)
which do not of

blend before addition of anti-knock compounds. Pump octane is as sold to the consumer. n umbers re present the percentage quality of gasoline under test. Motor number under conditions See page 146. analogous of iso-octane octane

hydrocarbon distillate rather than water. This has in deeper or difficult wells, but can make the of formation hydrocarbons more difficult.

J

Methods of inspecting

and testing the quality or

integrity of vessels or equipment, representative sections.

involve removal or testi ng to destruction

that must be blended with heptane to produce the (MON) is similar to RON, but is measured to climbing a steep hill.

A low risk form of participation makes no further contribution operations

in which the
.....

beneficiary, who is usually farming out his interest, to the cost of of all costs, but is entitled to a s hare of any net profit

---"-, ..,,-----,,, ... -

See in place.

Any equity participant

in a joint venture operation

other than the operator.

on production revenues after deduction including in some cases, Interest.

Odorant Noll'll Recourse FinanCing
In a development project the A substancewiih-apenetrating of leaks, etc. Although methane detect. smell, or sten~h Lending to a participant which is added to a gas supply to assist detection toxic and highly inflammable, and hard to is colourless, odourless

The vertical distance between

pointsoftiig-tiest

and

lowest known oil or gas in a reservoir.

on the security provided by the development Another form of net profits interest, but normally without deduction charges. of capital costs or financial revenues and assets alone. Sometimes financing covers participation in several development borrower. See log. A gamma-gamma log. See log.

An oil well, particularly

an oil discovery well.

projects, which provide mutual A well drilled to mirror a production well drilled near the boundary of a neighbouring common production. concession, on a reservoir, in order to secure a due share of

OiiU'ield
1. A group of hydrocarbon reservoirs in a common geological setting. 2. A single reservoir, the subject of actual or planned development.

security, but without further recourse to the

lOOK

AT

THINGS

DIFF"E_~!ONHY

Page 56

Oil & Gas Handbook

.>l<r

BANK OF SCOTLAND
CORPORATE

GLOSSARY
On$tll"«Ml:Im
Specialised sedimentary hydrocarbons. In control on the rig floor, ego the driller. On the
._--------,,_._ .._, .... _ .... _._----_. __ .. A colloquial reference to exploration

OPOL
is flowirq, or plant is in operation. (Ottsho~e P-;lIutlon Liability Association operators Ltd) in the An industry co-operative European continental etc. up. insurance and self-

geology, which deals exclusively basins and the sources of

with

When production

insurance scheme between brake refers to the control of weight-on-the-bit, and production See drill Siring.

r

Closure

shelf and adjacent coastal

areas, covering the costs of major pollution clean

activity.

OPEC/OAPEC Olin Pr@vince
See petroleum province. The Organisation and Organisation of Petroleum Exporting Countries of Arab Petroleum Exporting

Organiic.lO!l"gannc chemicals
Substances derived from living organisms, such as

?Bg

OIL SAND (reservolr rock sedimentary) CAP ROCK (impermeable)

oil in the natural state.

Countries. Historically,

both have been dominated

Oil Shage
See shale/sh-al'---e-oC"CIJ-an-d tar sands.

by Saudi Arabia, their Originator.

Oll"iifice meter
An instrument that measures the flow of a fluid ina a controlled flow through a pipeline by monitoring or beans. small aperture.

A vertical cross-section showing a typical

of strata

Open flow 1. Producing a weI/without
Any accidental emission of liquid hydrocarbons,

fault trap and outcrop

J

2.

Unrestricted maintenance

produclion purposes.

normally for testing or A ring-shaped gasket for flanged pipe joints.

from general shipping, oil tankers, or operations onshore or offshore.

Overheads 1. The iighlends-p-r-o--'-du-c-e--:d--;fr-o-m-t-:-h-eC-to-p-o--;f a
distillation vessel.

Open h@le
An uncased section of well borehole. casing in a well. An equity interest in a The lower end of the oil column in a reservoir with underlying water. This may be graduated where it is hard to detect. or occur in formations appropriate

OrCligeny

2.
of

Standing expenses

not related to, or variable

with, specific operations. The proc-e-ss-of"-f"-o-'-ldC"Cin-g-,--'fa-u-lt-in-g-an-d-co-m-p-re-s-sion ~f the earth's crust, leading to the formation mountains, synclines, anliclines, etc.

concession.

which pays an

share of the costs and receives an Part of a rock formation appears at the surface. or mineral vein that

Collecting

more crude oil, etc. than a production

equivalent share of residual income after prior charges such as royallies.

parli ci pant or pu rchaser is entitled to at anyone time. See under/ift.

._._---_._--_

.... _-

Op~lf'ator
known as alkenes. See for conducting

Overriding
any deduction

royalty
production revenues before for costs, taxes, etc.

The group of hydrocarbons page 147.

1. The company or other organisation operations

-----c,--------------------------

responsible

A royalty payment-f~~~

on a concession,

on

behalf of itself and any oth er concession
............................

On Line

_ ... _-"._".

holders, (non operators). The operator usually
--------------

1. Any vessel or equipment and permanent online computer).

which is a normal (eg. an

h as the largest s hare of equ ity participation. 2. An oil industry worker, someone process plant, etc. 3. The mechanism activating controlling

OV~iI'shot j.. :fishing tool with a socket to fit over, enclose, and
grip the top end of the fish for pulling out.

part of the operation

2. On Line can also mean in working serviceabl e.

order,

a valve, etc.

Page 58

Oil & Gas Handbook

*' BANK OF SCOTLAND
"laOK AT THINGS DIFFERENTLY

CORPORATE

GLOSSARY

-----------

The production or inner string of casing.

A specialist in the properties and behaviour of hydrocarbons in their natural reservoirs and under production conditions. While a geologist normally

r
ValveopclI ~ Valve closed

A formation containing productive hydrocarbons.

provides estimates of hydrocarbons-in-place, a petroleum engineer would normally provide the estimate as to how much of it could be produced,

A seal used to isolate a section of a well, egofor
testing or production from one of several forma/Ions. Packers are also used in operations such as cementing and acidising. A type of gas sales agreement under which deliveries can be interru pted by the buyer when not needed in periods of high demand, or peaks. Sometimes this right applies to only part of the production, or is backed by a guaranteed minimum The study of fossil organisms as related to their geological setting. Holes punched in The study of pollens and plant spores. Identification of fossilised forms of these in a geological formation can help determine the environmental origin of sedimentary rock, and periods of exposure as land rather than seabed. zone to be prod uced, to allow oil or gas to enter the well. A perforating gun is a cylindrical tool loaded with explosive charges, which are triggered opposite the pay zone, perforating the casing in many places. an nual offtake. See take or pay.

--------------------

(recoverable reserves) under what conditions, and at what rate.

9

A pig launcher/receiver

J

A large area where reservoirs show common orig ins an d characteristics.

Piles
1. Tubular steel shafts driven into, for exam~e, the seabed to anchor a structure. Sometimes known as pins, piles are usually driven through the centre of tubular platform legs or through external sleeves or skirts attached to the legs.

The study of rocks, their origin, chemical and physical properties and distribution.

2, There are numerous uses of piles in ports
A scale of alkalinity or acidity running from 0 to 14, with 7 representing neutrality, 0 maximum acidity and 14 maximum alkalinity. and in foundations for all heavy plant, onshore and offshore.

A liquid mixture consisting mainly of a/kane hydrocarbons. See pages 146~ 147.

The degree to which a body of rock will permit a fluid to flow through it. It
IS

Collapsible synthetic rubber/fabric See set back/pick up.

storage tan~

a function of the shape

which can be easily transported and deployed in, for example, military operations or difficult terrain.

of the capillary pore spaces and the degree to which pores are connected. This usually refers to rights retained by a state when granting a concession, primarily to acquire part of the production at stated terms, but sometimes also to partICipate on a full equity basis in any production development. Literally "rock oil". Can Include products, but normally means crude oil. Petrochemicals are chemical feedstocks and intermediates derived from petroleum. See page Bullet-shaped, cylindrical or spherical capsules, which are inserted Into a pipeline flow and travel along It with the fluid. Their primary purpose is to scrape the pipeline clean of rust, wax, or other deposits, or in a gas pipeline, slugs of liquid from low points in the line. Caliper pigs also measure the pipeline as they travel, and smart or intelligent pigs contain various instruments to monitor pipeline condition and integrity. Pig launchers and pig traps are the arrangements of valves, etc. th rough which pigs are inserted into and extracted from a line.

Pun
1. See piles. 2. The male end in a threaded connection.

The thinning out and disappearance over-a-----distance of a formation such as an oil bearing sandstone between layers of impermeable rock.
Piiil'lgiEllII'

150.
When accumulated revenue from an operation equals the accumulated cost to date including investment cost. This is normally expressed as a period of years from starting to earn revenue.

A source of sound (eg. an air underwater seismic survey.

g~n)or an f

Page 60

Oil & Gas Handbook

.*.BANK OF SCOTlAND
LOOK AT THINGS DIFHlfEN'rLY

CORPORATE

GLOSSARY
_---_

PUail:eau pfi'@ducil:ii@n ra!l:e
.....

properties, eg. polyethylene . A small, basic distillation plant for lise in remote

...

In drilling, a collar fitted to a stnng of pipe to stop it dropping if the slips fail to hold it.

See production plateau.

P@n1i:@@n
1. AflatbotiOme(fvessem;arge)fo~t;:-;~-p;-rti~g One of various types of offshore structures. structures, etc. to an offshore installation site.

production areas to extract locally needed fuels from the crude oil.

Pipe facing

machine
and prepar'lng the butt ends

A machineforcleaning

2. A submerged or semi-submerged part of a Plati@lI'mell"
See reforming. floating drilling rig structure, designed to assist flotation, containing ba/lasttanks. A downhole pressure recording capsule used in well monitoring.

of pipe joints for welding.

Plati!:s @iillgram
A dally reference publication forthe industry,

P@@I
1. An oil pool
---,:----:--------,:IS a reservoir

or group of reservoirs

A sealed chamber in which divers can rest between shifts without decompression.

Pipe rack
Where stands of drillpipe are stacked vertically in; derrick ready for use. Racks or frames are also sometimes used to store tubulars horizontally in yards and on offshore decks, and when transporting them offshore.

containing spot and other market price data. It has become a standard for indexation of prices, etc. unde r long term contracts.

sharing a common pressure system.

'2. In a refinery or blending plant, the gasoline pool
is the average octane value of the gasolines produced! available. The process of keeping reservoir pressure at the optimum level during production, normally by water or gas injection to replace fluids extracted.

------

An enclosure such as a control room, where for safety reasons, the air pressure is kept higher than outside, to prevent infiltration by inflam mable or poisonous gases.

P@P~lIIP blll@y.flll'fecann bu@y
A buoy, which is normally submerged, but will surface in response to an acoustic signal. Often used to mark the position of wellheads. (Also, colloquially, Yoo-hoo buoy).

A sloping ramp from the pipe storage area up to the working floor of a drilling rig.

A tank or process chamber built to hold fluids under pressure, whether for production, refining, or other purposes.

Ph.llg/plug
Hydraulic rams in a blowout preventer, which are shaped to fit around the drill stem and seal the annulus. Blind rams are designed, in extreme emergency, to shear through the drill pipe and seal the well completely.

all''U'lI

aband@n
The volume of free space between the grains of a rock capable of holding fluid (gas or liquid). It is expressed as a percentage of total gross rock volume.

To seal a well, or part of a well with cement, eg. before producing from a higher formation, sidetracking, or leaving the well permanently sealed and abandoned.

Price

swap

..... _---------_

.. __ ..

",.

See derivatives.

Primary recovery/primary production
See natural depletion.

P@g@plan
A financing arrangement for high cost exploration. The investors usually take stock etc. in a company set up for the purpose. Official price of a type of crude oil for export from some producing countries. Historically, they were the basis of tax assessment rather than the price actually paid.
------

Pitch
See asphalt.

Primary refinery process
Thedislillation of~rude ~;iintoits-m-a--'j-o-r --components for further processing or sale, i.e, LPGs and gases, naphtha, middle distillates, residual fuel oils.

An offidal concession map in the USA - hence any official concession map.

Hydrocarbons, of which the carbon atoms form a ring or rings, eg. cycloh exane.

P@UI" point depressani (PPE»
Chemical compounds added to very viscous or waxy oil to prevent it thickening at low

Plate tectonics
See tectonics. Two or more molecules of the same kind, combined to form a compound with diHerent physical

temperatures to the point where it will not flow.

Page 62

Oil & Gas Handbook

.*. BANK OF SCOTLAND
t
o og

AT

r

arao

s

OlFfERENTlY

CORPORATE

GLOSSARY

The initial period of an oil or gas concession, during which, if the operator's obligations are fulfilled, rights to a second term, often over a reduced area, can be acquired. See relinquishment.

A loan repayable out of production from a well or field

-------_

.. ,_ ... ,_ ....

A type of concession in which part of the return to the host government is delivered as produced hydrocarbons, on a scale normally calculated after deduction of production and other agreed costs. It

A pay zone. See horizon.

The continuous productive capacity of a well. The index is measured as volume produced (eg. barrels per day) divided by the drop in pressure

The period during which a field is capable of

works particularly well in areas with less developed taxation regimes, and relatively little local petroleum industry activity.

Prroi!.lluct yield!
See yield

producing at or near its maximum average rate.

(p.s.i) to achieve that flow rate starting with a shutin pressu reo

Proi!.lluciion

Production platforms are of varying types depending on environment (water depth, etc. and reservoir needs). Semi-submersible and ship shaped vessels developed from the respective offs hore drilling rig concepts are also used as production facilities.

Pr@c;!Iucti@ntestillllg

1.

The

scale extraction of hydrocarbon operations resulting in a

A prod uction test concerns the capability to produce (productivity) of a well and its effects on the reservoir produced. A production test may continue for several months where extensive data is necessary, prior to final comm itment to development expenditures, etc.

._----

reserves. (Also the reserves extracted) 2. Refinery/petrochemical yield of products.

_,...

--

Petroleum fractions. See pages 146, 147 and 150,

--,..

Proc;!lucti@1llIcasing

string

Where several interdependent platforms are clustered in a development, they are known as a production complex.

Shallow seismic sUlVeying by echo sounder techniques.

The innermost steel lining of a well, cemented in place and perfora ted for production in the pay zone. Note that production tubing is inserted inside this casing.

The string of pipe installed inside the casing of a production well, to a point just above the reservoir, through which the fluids are produced. It may be 2in - 5in diameter or more, depending on the production flow and pressures anticipated. A loan for development costs, which is repayable primarily out of revenue created by the project in question. Non recourse project finance is only repayable out of such reven ues or the project assets offered as security, and any shortfall is at the risk of the lender.

Concrete Gravity

Floating Production Systems

Underwater Manifold Centre (U MC)

Steel Piled

Floating

Guyed Tower

Tension Leg Platform (TLP)

Producti@n
reservoir fluids.

weU.fproc;!lucer

A development well specifically for the extraction of Sand, gravel or other particles or beads used in hydraulic fracturing of a formation, to allow all to The assembly of casing head, lubing head, con nection s and well control valves fitted to a producing well. The Christmas tree is the name gIVen to the complete assembly of valves, con necti ng flanges, etc. Primarily data obtained from the owner of a seismic survey record under a confidentiality undertaking. It can also include all confidential information acqu ired as part of sole or joint operations. Production platforms - Source: UKOOA flow more freely by wedging into the cracks, etc. created and thereby preventi ng them reclosi ng.

LOOK

AT

THH..eG5

DIFfERENTLY

Page 64

Oil & Gas Handbook

-)j(. BANK OF SCOTLAND
CORPORATE

GLOSSARY
IPrroll'atno!l1liing
Restriction of production in a multi-concession syste min proportion to field capacities and ownership interests. This may be by government regulation or due to a period of under capacity or, for example, maintenance in a pipeline system.
--------------------------_... -- -----

Re~e!lT!tlfW
A hole in the drilling floor, in which the kelly joint is kept when not in use. Inserting the drilling, testing or logging string, etc. into the wellhead.

Natural gas before removal of water, sand and In the oil and gas industry, the US definition is used, other impurities. ego 1015 not 1024 as internationally accepted.

Plant and processes such as distillation, cracking, etc. where crude
011

and other hydrocarbon

Prr@ve!l1l.prr@bOlllbleand possible lI'esell"'!8es
See Reserves.

feedstocks are converted into marketable commodities. See pages 146, 147 and 150. A tool designed to enlarge a borehole. It may be included in the drill string just above a conventional bit. A secondary refining process, which like cracking, changes the molecular structure of the feedstock. The use of platinum as a catalyst in these See pop-up buoy processes has led to the alternative name Platforming.
--------

~

-----------

Quiet

Rig
---:--':"----;-.:--;--;--

A drilling rig insulated and equipped to operate with the minimum disturbance of sensitive onshore Winching the end of a subsea pipeline or flowline into a connecting chamber or wellhead, or through a J-tube riser guide to the platform deck. A document giving up an interest in a concession environments such as built-up areas.

PuDDing casing
Retrieving caslllg from a well (where possible) before abandonment.

or lease.

_ ..-

--,_,

....

The ratio between the volumes of oil and/or gas

Q Unut
--------------------------

produced and produceable from a reservoir and the oil and/or gas originally in place.

A standard oil industry measure of vapour pressure, in p.s.i. at 100 OF (38°C),

A unit used in overall assessment of energy

Pulling

@ut
the well.

resources. It ISequal to 1018 British thermal units (BTU). Re-inJedion of produced gas into a ga8/ A second well deviated from a safe distance to a bottom-hole location close to a blowout well and produced so as to reduce the pressure In the blowout. See killer well. A reservoir, usually limestone, deposited in marine condensate reservoido maintain pressure for optimum recovery of condensates.

Retrieving and stacking thedrli/sir/ngfrom

Pup Joinil:

A joint of pipe of non-standard length, to make up a string of tubulars to an exact required total length.

----;-----,------:----,--;-~-.

the interior of pipes and vessels to eliminate inflammable matter, usually with a safe gas such as nitrogen.
----------------

conditions. As the name Implies, it is frequently A small pig for flowlines. elongated, and early high production may not be sustained without pressure support. See tubing board.

It is a common feature of government concessions or licences that at the end of the primary term a proportion, commonly half, of the area concerned must be released by the licensee (relinquished). This encourages early exploration activity to identify

Pressure/volume/temperature

data usually related

A vessel for laying underwater pipelines from a

the most highly prospective parts of the concession.

to a test of a reservoir formation or well.

ROIldiloi'!lldive Dog
See log.

rotating drum large enough to hold a continuous length of pre-welded pipeline.

See pipe rams.

LOOK

AT

THINGS

CJ~FH_IH_NTl'f

Page 66

Oil & Gas Handbook

->:<. BANK OF SCOTLAND
CORPORATE

GLOSSARY

A petroleum engineer spec.alisinq in the behaviour An example of relinquishment in the UK North Sea. The original licencees discovered two reservoir structures in Block 16f21 , and retai ned th e maxim um relevant acreage which became Block 16f21a. Another gmu p took the rest of the bloc k 16f21 b, and when relinquishment in turn fell due released the Northern area 161 21d. Since part of 16/21 b thereby became detached it was renumbered as 16/21c. of relinquishment or potential behaviour of reservoirs and ·their fluids under production conditions.

Drill Ship
(5000 ft.)

The heavy turntable at the centre of a drilling and in turn rotates the kelly.

ng

floor, which is rotated by the main rig power supply,

15121

RCPI!Jlglillneck
The pressure at reservoir depth in a shut-in well. Types of mobile The dense, viscous heavy ends of the barrel, remaining after extraction of higher-value fractions. with approximate water offshore limits drilling rig See drilling crew.

of operating

,
: Pipe LIne

depth - Source: UKOOA

J

Recovering the drifl string from the bottom of the well to the surface and returning it to continue drilling. This may be, for example, to replace the bit.

An example

J

Retr@grade condensation
In some reservoirs, mainly deep gas/condensate reservoirs, (gas/oil ratio between 5,000 and Also rig superintendent, rig boss. The senior individual onsite in a drilling operation. He may also be an offshore installation manager. Royalties are payable on operations which are See dolling crew.

Re-search oclane

number

(RON)

100,000 cu. It. per barrel) where temperatures and
pressures are high, a progressive decrease in reservoir pressure as result of production will gradually lead to separation of liquids (heavier molecules) from natural gases in the reservoirs. These liquids are mainly lost to production, being bypassed by the more mobile gas. Recycling, reinjection of produced gas to maintain pressure, used to postpone this problem until an acceptable proportion of recoverable liquids has been produced.
IS

See octane rating and anli knock compounds.

ResenlesJ"recoveli"able
Technical reserves

li"eSEl!nles

Ring fence
A fiscal segregation of revenues and profits fr;m oil and gas production to prevent costs and losses from olh er corporate activities being offset ag al nst them, and production tax revenues "lost" there by.

subject to prior rights of other parties, such as land owners of production leases, patent proprietors of refi nery processes, etc. Royalty oil is taken by those to whom royalties are due "in kind" in place of cash payment.

Oil or gas that it is antici pated can be prod uced. are theoretically producible at a gross operating margin by, for example, normal primary or secondary recovery methods, while commercial reserves are restricted to volumes recoverable at an acceptable profitability. The detailed definitions are important in oil and gas financial and other information, and are quoted more fully on pages 120-125 in the form currently approved by the Society of Petroleum Engineers.

A pipe through which fluids flow upwards, as from a subsea wellhead or gathering pipeline to the deck
......

...... _-,----",.

Inserting any tubularortoolinto casing is running casing.

a well is known as

running-in. Assembling and lowering in a string of

Maintenance work on a well to stimulate production. This may involve cleaning out silt deposits, etc, or stimulation techniques such as fracturing or acidising.

_---_

.

of a platform. Risers may be rigid or flexible (the latter more common for floating production facilities).

Rese-nloir
A porous, fractured or cavitled rock formation with a geological seal forming a trap for producible hydrocarbons. A common exploration maxim is that a pros pective targ et must possess a related source rock, structure and seal.

A rotary drilling bit, which penetrates by pulverising the rock with its toothed wheels. A collective term to describe the permanent equipment needed for drilling a well. It has come to include the onshore and offshore vehicles, mobile platforms, or vessels on which the equipment is installed. The mud supply hose from the standpipe to the swivel.
lOOK AT l"HH1GS
DIFf~REIH!.Y

R@tilllrYbit
See bit.

...... _-----_.....

----

-

Cement, mud, chemicals and other solids used in drilling are supplied to the the well in sacks.

ng and

measured into

Page 68

Oil & Gas Handbook

*<. BANK Of

SCOTLAND

CORPORATE

GLOSSARY
SapropeH
In a cathodic protection system, a block or bar of non-ferrous metal attached to the submerged part of a steel structure, is gradually eroded in prevention of structu ral corrosion. See kerogen.
...... - .__ ._._-,-------,-------The process by which tides and currents carry away

--

-

------

-

-

Production of fluids from a reservoir by water or gas injection and pressure maintenance rather than blowdown or natural primary recovery.

loose sedimentation, etc. from arou nd a fixed object

SatelBiite Development/platform/well
._--;-_.

on the seabed such as a platform leg or pipeline.

An installation dependent on the existence and

SOJIfi'etyboat
A small vessel, employed to remain in the vicinity of an offshore installation for emergencies such as "man overboard".

services of a gathering platform/facility. They are usually relatively small, but profitable because of the lower capital investment required per barrel of reserves.

A person

......................

_ ...

employed to glean information on results

Processes, which go beyond the primary distil/allon of crude oil into its component fractions.

of seismic surveys and wells in an area.

Section IOf land (U.S.)
A device for cleaning the inside of casing In a well, One square mile, as defined for leasing purposes. or as with a scraper pig, the inside of a pipeline.

A large accumulation of salt, which due to relatively low density is extruded to th rust upwards into overlying formations or raise them from below in a hump or dome. The impermeable salt creates potential traps for hydrocarbons.

Satellite navigation/communications
Communications satellites are now extensively used to fix or locate positions offshore to the accuracy necessary for oil and gas operations.

Scratchers
Collars with wire bristles fitted to the outside of casing to remove filter cake from the wellbore and help ensure a good cement bond.

Sedimentary rocks

basin/sediment.ary

An area, which in a past geological era has been depressed, acquiring deposits of sedimentary rocks such as sands, silts or limestones. These are mostly formed from detritus or erosion, etc. of exposed formations and deposited in land or seabed depressions, or as, for example, wind-formed desert dunes. See alluvial Ian.

Saturated

hydrocarbons SCll'een
A tubular sieve inserted in a wellbore to hold back loose sand and rock, while letting oil and gas enter the well.

Hydrocarbon molecules, which cannot absorb any more hydrogen atoms without subdividing to release carbon valencies for further hydrogen.

Segregated
------

banast

See saturated hydrocarbons, faloil, etc.

Scrubber
A separator for removing liquids and solids from a gas stream.

Tankers take on bo-a-r--:-d-w-a-;-te-r-Cb:-a--;":-as-I"'t-o-re-·duce buoyancy and load stresses under different cargo conditions. This is now almost always done using specially filted ballast holds so that on deballasting, the water is not contaminated With oil.

------

Diving performed over long periods at high submerged pressures. Instead of depressurising after each shift, the d.ver lives in a pressure chamber, either below the surface, or hoisted on to the diving support vessel. See decompression chamber.

Seal

See reservoir. An impermeable fault or stratum of rock, beneath or behind which, hydrocarbons can accumulate.

------c---

Seismic obligation
A seismic survey committed to, in wi nning an award of a concession.

Secondary Saybolll: universal seconds
Formation of oil and gas reservoirs of a salt dome - Source: Whitehead Unit of measurement of oil viscosity, mainly used in

porosiQy Seismic sURey
A survey conducted to map the depths and contours of various prospective rock strata by timing the reflections from strata-tops of sound waves released on the surface or down a borehole. This is called shooting seismic: originally an

Porosity developed after the original deposition of a formation, for instance, by the action of water on soluble components of the rock, or well stimulation techniques. The flow of fluids through a reservoir under production conditions can cause development of secondary porosity.

by

intervention

J

commercial specifications.

----------~--~----~

LOOK

AT

THINGS

DIFE=E!1ENTLY

Page 70

Oil & Gas Handbook

.:$:. BANK Of SCOTlAND
CORPORATE

GLOSSARY
explosive charge was used in land surveys as a sound-source. At sea, an air-activated gun is the normal source. A survey is usually based on a grid pattern of shotpoints where the sound is released. Returning seismic echoes are recorded and computer processed to produce contoured maps or vertical sections of the lines between datum points. 2-D seismic measures depths from reflections along such a line. 3-D seismic takes Simultaneous oblique recordings parallel to a line, giving more accurate measurement. 4-0 seismic is 3-D seismic applied repeatedly over the productive life of a reservoir, the time dimension being designed to show, by comparison, the progress of fluids through the reservoir, etc. Permanent receptor cables are laid over the surface or seabed to ensure comparable results. This technique is known as aBC - ocean bottom cable. In addition to 4-0 it also permits 4-C analysis. That is to say, use of the shear wave components of the sound refledion that can only traverse solids as opposed to liquids (and hence not receivable with a conventional towed hydrophone array). These waves can contain very useful data when correctly processed and interpreted including information on the fluids and Momentum absorber Inlet Serpentine vane mist extractor A process vessel used to separate gases and various liquids in a hydrocarbon stream. A wellhead separator is the first process vessel in a production operation, operating at or near wellhead pressures. See Log.
-------_._-

---

The port installation from which an offshore drilling or production operation is maintained.

The strengthened fitting on the lower end of a string of casing to protect the tubulars and help direct the cement to the annulus.

Semiasui»mersi!i:Jge/ semi~submell'siibge rig

A floating platform, vessel or drilling rig, which
ach ieves its stabil ity by ballasting down, i.e. taking

--------" ...

Seli'll'iicewelD
S~e Injection Well.

Shoestring up

sand
-c--~

Thin, often elongated streaks of reservoi: sand,

water into ballast compartments in its hull. All seagoing floating rigs except drill ships are of this type.

Sei back/pick

completely surrounded by impermeable layers.

Tubulars removed from a well are set back in the racks (see tubing board), and picked up for re-running into the well.

Shori trip A trip, during whi~h the drill string does~()t reach
the surface. It may, for instance, be withdrawn 'from downhole into previously set casing for protection.

Setting

pOint (casing) _ __:o-:::__

_

The depth to which a siring of casing is set and cemented.

Sh@tgun tank
stripper production.

A tall, narrow separator column used in onshore Sevell'llsisters
The seven most influential oil companies in the development of oil as a major force In world politics, namely: BP, Gulf, Royal Dutch/Shell, Standard Oil New Jersey (Exxon), Standard Oil of California (Chevron), Standard Oil New York (Mobil) and Texaco.

-----:---

Shotp@in1!:
See seismic survey.

Show
Evidence of hydrocarbons in a formation, such as fluorescence in cuttings or gas in the mud returning

Severance

tax

from downhole.

A production tax in some areas of the USA.

rCila/l,

Shutmin pressure
Oil and gas horizontal separator - Source: Whitehead

fluid contacts within a reservoir formation
l._CL>.J-..

J

Shale/shale

oil

Very fine-grained, muddy sedimentary rock With low porosity and consequent poor resetvolr potential. Oil shales or kerogen shales contain bituminous deposits, which if found at the surface, can be

-------

The pressure in a shut-in well; static pressure.

generator
/
J

'C.:..~-. Sonic

Hydroph~ne _Hydrophone Hydrophone
I I

Sialic layer
The upper layer of the earth's crust, in which prospective reservoirs are found, so called from the predominance of silicon and aluminium in its composition.

I

Refracted
wave

Sandstone

-·-·l-"'~..

The proportion of time available, during which a piece of equipment or whole installation is, or can be expected to be, fully effective. Ineffective time or downtime may be due to weather, maintenance needs,etc.

extracted by heating to form shale oil.

~/

I

.-

"-...., ..~//

ShaDe shakers
---

........

See mud Screens for extracting rock cuttings from circulating drilling mud.

_-----

Sidescan

sonar
------

Acoustic survey equipment towed close to the seabed, used for surveying pipelines. See sonar.

Seismic

survey - typical

reflection

and refraction

wave patterns

J

LOOK

AT

THHIEGS

OH'FERENTl'f

Page 72

Oil & Gas Handbook

.>t<. BANK Of SCOTLAND
CORPORATE

GLOSSARY
Sloughing
A well re-drilled from an intermediate are re-d ireded encountered or sidetracked but usually because of technical
... _ .. ",,-------

S@IiIJltion gas
of the wall of a borehole. See associated

depth. Wells

Moving the derrick to a position above another

Crumbling

or disintegration

gas.

for various reasons, problems

wellhead, or slot where a well is to be drilled or worked over, etc. Skimmer

- ---------------

S@lvent extraction
of liquid, for example, condensed A refinery process where a soillelltis selectively process flow. used to isolate and remove part of the

deeper in the original well. Equipment for removing aSllrface layer of oil from

An accumulation accumulate

water, in a low point of a gas pipeline. Slugs tend to when flow rate is low or interrupted. without disrupting the gas A slug catcher is a large separator for removing the slug at its destination flow.

SiidiewalUcoring
Obtaining rock samples from the sides of a
~--------------------

an oil spill, or 'from an effl u enl water separator tan k, which is designed for the purpose.

well bore using a special tool.

----------

An acronym for sound navigation

and ranging. The

SignaOling pig
See

use of sou nd echoes to locate objects un d srwater.

pig.
production well pressures and flows of, for example, formation damage.
1. A mix of cement cementing. 2. Solid particles or crushed fragments for pipeline transportation. Drilling a well from a non-vertical surface position. in a liquid and water used in drilling! Nitroglycerine. It is used in explosive fracturing of a
.._ ..... ,,"--,-

Single anchor leg m@@ring(SALIMI)
A compliant monopod version of the SBM tankerloading buoy, used in deeper water. See single buoy

downhole formation SOlUll"on/gas

mooring.

U sed offshore to reach distant parts of shallow A single-point unloading buoy mooring for loading and

Smoke
kerosene

pOint
at which· will burn without smoking; used as a of JP fuels

Oil or gas with a-r-eC-la-t-iv-eC-ly"""Ch-ig--ch-cont~~t~f (odorous, poisonous or corrosive) sulphur compounds such as hydrogen sulphide.

reservoirs where depth is insufficient deviated drilling.

for normal

The maximum flame height in millimetres, measure of the burning effectiveness and kerosene.

tankers. The oil is fed to or from the
RedUCing the cost of a well, where technically feasible, by the use of specially designed diameter equipment. small

centre of the S8M from below, and the mooring gear and loading hoses can swivel above the buoy through a full circuit. The tanker moors bows-on, and "weathervanes" wind and sea. A wire or rubber-and-fabric strop used in lifting around the buoy, presenting forces of the minimum frontal area to the combined

Source rock
The sediment!rock
"--;-;-----;--,------,--:--:--;-

in which fossil deposits are which may then migrate

Snubbers
Tackle for exerting a downward high well pressures. force on a string of

formed

into hydrocarbons,

into different

porous formations. See kitchen.

tubulars when Inserting it into a well against very Spacing
The density expressed solid at normal A very large manned SBM incorporating oil storage.

pattern

Of development

----------------

drilling on a reservoir~well.

Sitting
Thi~usually

@na wen
describes the role of the wellsite

tubulars. Slips
Metalwedge~ which are set in the annulus at the drilling floor to grip and support tubulars while sedions are added or removed.

Solid alkanes HydrocarhoniractiollsthaCi3.re
temperatures.

in acres per producing

geologist. Sizing pig
See

See alkanes and page 146.

Sole risk
participant

pig.

A provision in joint ventures whereby the only wishing to incur the costs of an activity proceed with the well at its own cost, rights to any oil or is also such as drilling a well, may, under certain water. conditions, and thereby secure enhanced theoretically

-:--:-:---------

SD@ptank
Temporary storage for-·oil contaminated

gas found. Sale risk development

poss ible, but very rare.
«t

-LOOK

nnHGS

DIFFERENTLY

Page 74

Oil & Gas Handbook

.>* BANK Of SCOTLAND
CORPORATE

GLOSSARY
SqlUl@@::!I:e
The part of an offshore exposed alternatively spray, and is consequently rust corrosion. structure that is regularly to atmosphere and water or highly prone to salt and Inserting cement under pressure into the poorly sealed annulus of a well, past the existing material.

Stack
',.... A v~rti'~al ent chimney or flare. v 2. The process of laying up an out-of-work other equipment 3. A compilation of seismic signals in the of survey data. rig or

Squibsh@'il:
An explosion set off In a producing weI/to stimulate production See stimulation and soup .

processing

A short section of pipe with flanges or thread
T"""'~r Le<!dn~I'

.... ---,_

....

-----------

!!,,~

&'_{}[){]oTnr"

tir

connections

at each end, thus appearing

spoolTo make a connection: to Insert one device into anoth er, eg. one stand of dnll pipe into the stri ng in the hole. To do this the derrick man stands on the

The daily charter rate for a rig in read iness, but not incurring drilling costs.

9.1"'~~~ C::",?3C~.DOO 11Ill

S~u Il""o'~i<>ul\.ol~ IQ(),QoIKII!rn.Pllt

shaped. It may be of any length required to make up pipeline or casing to an exact required length.

Stand of pipe
A short length of drill pipe pre-assembled time in operations and stored vertically derrick ready for use, usually in lengths
~c----

IloSI~<D~

(;"""",ulm~~I'

Spe»tchariell' A one voyag e tanker charter or one, well rig ch arter,
as opposed to a time charter.
---

stabbing

board high in the derrick.

to save in the of three

StabiliseI'

1.
A fishing tool for recovering
penetrating A spar buoy and gripping downhole tubulars by

A distillation column for stabiliSing stabilised crude 01Y.

crude oil. See

JOints, known as 'Thribbles', 'Fourbles' and Twobles'

(four joints)

(two joints) are also known.

2. Part of a drill string, a tool with external fins to give rigidity to the string.

them from the inside.

Standpipe
.._---,
..
,.

J
Placing cement, etc. accurately at a certain level ina well.

3. External fins on the hulls of shipping to minimise
motion due to the sea.

The fixed pipe taking mud from the mud pumps under pressure, up to the level of tile rotary hose and swivel.

Sparker
Part of an echo sounder for gauging of soft seabed deposits.
-;-----;---0--

4. One of the columns or legs of a semisubmersible rig, which contains compartments for stabilising ballast motion.

the thickness

The process of introducing Th.s has come to mean any complete set of

feedstock

to tested and

Spiider

Stabilised

cl'aude on
have been removed, thereby sale specifications.

commissioned capacity

plant and working

it up to production

.._---_._ ....

A power-operated

set of slips for gripping

tubulars.

equipment designated spread.

and ancillary vessels or vehicles, for a task, eg. pipelaying spread, diving

Crude oi/, from which gases volatile at normal surface conditions meeting commercial

and efficiency.

Steam injection/steam
Techniques

floodon9

..

_--",_, ....

Below the rig floor, the lowest deck on an offshore drilling rig.

used to lower the viscosity of residual

Spud
To start drilling a new well (or re-start).

Stabilised
sustained

fl@w
a well produced at a a drop in flowing pressure.

oil in the reservoir and assist it to flow to a well. See enhanced oil recovery.

In well testing this Indicates rate, without

A powered rotating

spanner or wrench

for gripping

and the

drill pipe when screwing

or unscrewing

..... _ .. --_ The end of each leg of a jack-up rig or platform,

...

Step-oui!:

weD.
at locatl~g the

Stabilised well
A well in which the formation pressure is balanced by the weight of the mud column in the well.

An appraisalwel~-specificallyaimed

joints. Previously, the spinning (winch) to rotate it

chain was wrapped

designed

to penetrate

the seabed and give a firm

lateral limits of the reservoir discovered.

around each joint in turn and pulled on the cat head

faun dation for operations.

1.001';

AT

THltlGS

DlFFER:ENHV

Page 76

Oil & Gas Handbook

.>i<. BANK Of SCOTLAND
CORPORATE

GLOSSARY
Stovepipe
Jamming of the drill string in the well borehole, caused usually by a high differential pressure and a build-up of mud solids on the rock face. by welding.

pipelaying

downstream,

ie, a refinery is upstream of a filling
well.

2. A man-made load-bearing construction, such as an offshore platform, usually designed by structural engineers.

On-site assembly of lengths of pipe, normally

station, but downstream of a production

However, all the extractive activities preceding shipment of stabilised crude oil or sales of gas are collectively known as 'upstream', and a company

stin
A primitive distillation unit.

Stl:rl.!lciural trap

A rubber packer or seal isolating a section of a well, for production testing of the formation in question.

operating only in these activities is known as an 'upstream company'. See On stream and stream day.

~~~~~--~~~~-A structure, such as an anticline or fault-block, and on all sides by impermeable

in

which a volume of reservoirrock is sealed above strata and/or faults.

Methods such as acidising (chemical) or fracturing (pressure) or explosions designed to break up tight, low-permeability reservoir rock in the vicinity of a well, so that oil can flow freely into the bore.

One of the products of simple distillation of crude oil.

Stream
downtime,

day
etc. Used in expressing plant throughput

Stuck

pipe

A d<iYlNh~~ plant is on stream, excluding planned capacity (eq. 50,000 barrels per stream day).

See sticking.

Strrake. helical
A spiral external fin to strengthen a stacie

Sub
1. A nonstandard fitting or adaptor. 2. A subassembly.

Stinger
In offshore pipelaying, the long submerged ramp, which supports the length of recently welded pipe curving between the pipe lay barge and the seabed, thus avoiding undue stressing, deformation or even the collapse of the pipe. Originally predominantly horizontal layers of rock of

Strapping
The process of calibrating a storage tank for measurement of its contents.

A long cable towed behind a survey ship carrying hydrophones sonar signals. for receiving seismic surveyor

3. A component tool in a drilling string.

Sl.!IbmersibDe
Aillanned or remotely controlled vessel designed to operate underwater. dir~cti;~ of a fau It, rock stratum,

Strike
1.Th~hbrizontal etc. 2. A strike is also a term for a discovery well. a homogeneous type such as sedimentary deposits. Subsequent local geological events may have tilted, rotated, folded or even inverted strata. Stratigraphy is the pattern of succession of rock column. See page 100.

Stock tank oiD
Stabilised crude oil.

Sl.!Ibsea encl@sWlre
A sealed subsea chamber installed over, for example, a subsea wellhead, providing access to it in normal surface atmospheric conditions.

St@pcocking
Intermittent production low productivity build up while shut-in. from nearly exhausted or wel/s, to allow time for pressure to

String
See joint, drill string, casing, etc. Any number of con neeted joi nts of tubulars ru n in th ewell.

strata in an area, represented diagrammatically by a stratigraphic or geological

Sl.!Ibmsea weDl/comple!!:o@l'II/ pr@dl.!ldiol'll etc.
A well with the wellhead set on the seabed. A system of such wells producing via gathering lines and/or risers to a nearby platform or subsea gathering station is referred to as subsea production. Such wellheads are often installed in templates for protection, access, and ease of installation of platforms, manifolds, controls, etc.

Stratigraphic
A temporary plug inserted in a pipeline under repair. impermeable,

A structure where the trap is provided by layers of but possibly homogeneous rock, rather than the geometrical shape of the rock

-.. ----_.

trap

-=----

__---

Stringer
See bead.

bead or pass

formation. They are consequently difficult to identify See jug. at the explora tion stage.

-------_._._ _ _ _." . A nearly exhausted well, normally defined as having

production

of less than 1 barrels per day.

a

Storm

choke

...............................................

_ ... _ ..... _._._._-_

.._--

Stream..... _._--_ ... ",_._ ..,-_.",_
The general flow of hydrocarbons from reservoirto finished product. Processes relatively early in sequence are described as upstream, and later,

Structure
1. Ag~d()gical stratigraphic formation, which, if s~~led against trap for hydrocarbons. leakage, could be a potential structural or

In a producing well, an automatic downhole drop. An emergency safety valve.

valve,

wh ich closes with excessive flow rate or press ure

t.OOK

fir

THINGS

OI!'FEflENTlY

Page 78

Oil & Gas Handbook

,*'- BANK

Of SCOTLAND
CORPORATE

GLOSSARY

r
Gas
011

SlIIIriace string
A storm choke type valve installed in a deveiopme~-t well, designed to seal the well in emergency until surface control has been restored. Also known as downhole safety valve.
.............

Swage nipple
----_.

See casing.

An adaptor for connecting lubulars of diffe~';~t diameters.
_" ...

ANTICLINAL STRUCTURAL TRAP

A detergent or emulsifier, many of which are used in the oil industry. Surfactants are increasingly used injected ahead of water in a waler flood system to Oil or gas that is low in sulphur compounds such as hydrogen sulphide. opposite of sour oil/gas.

====t;;~~~~."
-----1-

Legalese name for a share of production flow from a well, pipeline, etc.

covercome by capillary action, the forces whereby the oil adheres to the rock grains.

Swivel
The rotary bearing from which the kelly and drill string are suspended .

Water

The proportion of exploration wells that encounter significant hydrocarbons. Commercial success ratio is the smaller proportion encountering

... --.--~--.

..... .._

_-,._---_._--

_, .

A vessel, provided at points in a pipeline or other flowline to accommodate temporary surges in pressure/fluid volumes due to timing differences in A geological formation opposite in shape to an anticline, egosaucer shaped with the edges higher than the centre. Although on a local scale synclines provide poor structural traps for hydrocarbons, on the larger scale of a sedimentary basin or sub-basin, they are prime exploration areas. the opening or closing of valves, operation of pu mps, etc. at either end of its section of line.

STRUCTURAL FAULT TRAP

tesetvolrs of development potential. Super pori
---------

A port capable of accepting supertankers for loading or unloading.

--_ .._---"

,-_

.

Swnthetic oil/gas
----_.

The deck, modules, and other parts of an offshore platform installed on the jacket or leg section. Sometimes referred to as the Topsides.

A type of totally enclosed lifeboat used on some oil and gas installations. See Brucker capsule and Whittaker capsule.

----;-----,-----,--Oil or gas produced by chemical process from coal, oil shales, or other feedstocks.

STFlATIGRAPHIC TRAP

SlIIIspell'lu!:led wen
A colloquial term for very large and ultra large carriers. See ULCC and VLCC.

crijcie

----

A well, usually a successful discovery well, which is left temporarily sealed or plugged to be re-entered for further testing or for production purposes.

Gas~~r-~~--~~ Oll ~-F==~!!IR~
Water-----+c=

SupplW b@aUship/vessel
Vessels specially designed to carry loads to offshore installations and participate in loading/ unloading by crane (or hose for water and fuels). They may also partICipate in, for example, anchor handling for the installation. They are highly manoeuvrable and robust.

Swabbing
1. Reducing pressure in a well to clean or stimulate

Overlaps in the distillation characteristics of oil fraclions resulting in a mixture of the products in that vaporisation range.

it. '2. Colloquially, to obtain information from
someone. 3. To reduce pressure in a wellbore by moving pipe, or other tools up the well bore. If the pressure is reduced sufficiently, reselVoirfluids may flow into the well bore. See kick.

Types of structure

(saturated

reservoirs)

J

Residual gas from a refmery or other processing unit

Page 80

Oil & Gas Handbook

'>!<r BANK OF SCOTLAND
CORPORATE

GLOSSARY
Take @II' pay

·.1

I
I

!

I
~~~--~--~--~~~--A clause in a long term sales contract, usually for gas, which obliges the buyer to pay for a minimum quantity each year even if delivery is not taken. A fishing tool similar in desiqn to a normal taper tap. It is screwed into the upper end of a tubular fish to enable recovery to the surface.

to-distribution Remote instrumentation systems, so that, for instance, subsea well or satellite development platform temperatures, pressures etc. can be read and recorded centrally.

pipelines, pipeline-to-rail tanker,

refinery-to-road tanker. The term also covers associated processing and storage facilities.

Tertiary

rec@vellY
-----------

Tank b@H@ms
Fluid in a tank below the pump suction/outlet, not normally evacuated.
-------------------

See enhanced oil recovery. Cutting into a pipeline to install a branch connection. See hal tap.

Temperature

bomb Testing
See drill stem testing, hydrostatic testing, non destructive testing, well testing, etc.

A capsule containing instruments for measuring temperatures down a well.

Tank dipping
- ----------------

Tar
See asphalt

The initial action in determining the contents of storage tanks. A prepared weighted line is lowered lhrough a "well" in the roof of the tank, and the level of the contents and/or underlying water marked. The volume represented by the difference in level is then calculated by reference to tank tables.

Template
This usually refers to a structural framework within which subsea wellheads are grouped. It may also

Tethered

platform
-----------

A variant of the tension-leg platform.

Any volume-based or tonnage-based

rental charge

refer to a prepared foundation or 'mal/ress' for soft or shifting seabed on which a jack-up rig, etc. can be stably installed.

for the use of an installation or equipment. egopipeline tariff, processing tariff. As distinct from royalties tariffs, which are payable to the owners of the installation.

Time map
A contoured map of a subsurface geological formation, based on the time taken to reflect seismic impulses rather than the subsequently computed/interpreted depths on a depth map.

Tanker
Any mobile storage unit for the bulk transport of crude oil, gas, or products, for example, road tanker or rail tanker. The term tanker, however, normally refers to marine transport.
;;---,---------,---:-----::-----;----;:

Tensi@ners
Vari ou s types of device to mal ntain controlled tension on a marine riser or one of the 'tethers' of a

Sands Impregnated with oil in the form of asphalt or bitumen, which can be mined for its extraction. See shale oil.

tension-leg platform. A refinery process whereby the larger, heavier

Tell'llsii@n~leg platform

(TIlP)

Tankfal"m
An area at a refinery, terminal or storage de pot dedicated to storage tanks and their safety requirements for surrounding space and spillage containment devices, See Bund Walls.

A semi-submersible platform, which is moored or

---c--c--------c----

molecules in crude oil or its residue are broken down into lighter products by heating under pressure.

Ted@nics
The process of formation and evolution of the earth's solid surface crust. Plate tectonics relates to the formation and movement of the plates of which the crust is composed.

tethered vertically to anchor points on the seabed. After teth ering, the platform is de-ballasted to allow its buoyancy to place the tethers under pre-

-------

determined tension. This has the effect of reducing vertical heave of the platform but allowing some lateral compliance with sea forces. The main advantag es are adaptabi lity to increasi ng de pth, minimal offshore Hook-Up work, and ease of removal, at some cost in load-bearing potential when compared with a fixed structure.

Enhanced oil recovery based on heating the oil in the resetvoir by sleam injection or sub-surface . combu stion (fire flood).

Tank tables
The result of~tr~PfJing a tankCa.libratiClntables for an individual storage tank by the use of which the depths revealed in tank dipping or gauging can be converted to a volume of contents.
K,V
___

Thief

A device for taking samples of fluid from intermediate levels in a storage tank, consisting of a small container on a line, With a remotelycontrolled inlet. It is inserted through the thief hatch in the tank roof.

.-:----;---,---;--,----

An1j[;[ine

A pointed or tapered bit for cutting through tubular steel junk in a well.

__

Syncllne Fautls rornes

Terminal
This usually refers to a loading or unloading facility in a transportation system for oil or gas, ego of features displayed pipeline-to-tanker, tanker-lo-refinery, trunk pipeline-

An example on a tectonic

map Source: Whitehead

J

LOOI<

AT

THINGS

DIFHkEr.l1'LY

Page 82

Oil & Gas Handbook

.)1(. BANK Of SCOTlA.ND
CORPORATE

GLOSSARY
Thiiefz@ne
A porous, fractured lined with casing. or vuggy formation in a well, into wh Ich drilling fluid escapes. It must be plugged or

Thumper See vibrator, vibroseis. Tie-in
The action of connecting one pipeline to another or to equipment. Hence pipeline tie-in commonly itself.

T@rque
The turning bolts, etc. force applied in any rotation, ego flange An acoustic device, which on receiving acoustic Signal, transmits a preset rotary drilling, making lip casing, tightening a response. WhenfiUed

to a subsea wellhead, for example, this enables a

Thixotr@py
The quality Offluids~uch asdrilli~g-;:;;ud and some clays to set when left undisturbed, can be important in selecting, but to become

T@'il:al depth (TD)
1. The target depth for a well. '2. The achieved (drilled) depth in a well at any

rig to position Itself very accurately for drilling, or re-entry. T!r<1ilp
See structure.

describes

the connection

fluid again when force or pressure is applied. This for example,Jack-up drilling sites, as well as in mud engineering.

Tight h@le _----,-_ 1. A well, regarding which, information
.. ..

--------------

one time.

is restricted in code.

as highly confidential,

usually In a competitive
IS

situation. Communication

frequently

Tour ..._, .. .. _,,_._-----1. Drilling or other shift - usually 12 hours.
"

Travelling
Thepulley

bl@ck

block suspe'-n-de-d-f'---ro-m crown block the

Thread

proted@r

A cap, which is fitted over the ends of casing,

'2. Occasionally used to describe a well from which production is restricted by low permeabtlity or
tight rock In the reservoir formation

'2. Any longer period of duty, such as say, '2 weeks
offshore, or a period of assignment to a remote or foreign location.

of a drilling rig, from which the hooks and swivel are in turn suspended.

tubing, etc. when not in use, to protect the
connections from damage and corrosion.

Tray
One of a series of perforated Rentalof a rig or vessel, based on a rate of more The log of a drilling shiH, with details of all operations, conditions Tools for gripping and turning tubulars when
... _".. --

horizontal partitions and

in

a disli'llation column designed to condense vapour.

A system for inserting instruments the production

workovertools or into a subsea well completion, through
gathering line or flowline.

than one voyage or well, etc.

materials and equipment encountered

used, and

draw off specific fractions of rising hydrocarbon

in the well. Pronounced

"tower sheet",

T!rUlii@n
The oil and gas industry commonly concerning trillion cubic feet). uses the US Tanker Owners' Voluntary Agreement Liability for Oil Pollution. definition, namely one million million 10,2 (TCF-

Thrusters
Fi;edor-st~erable propellers manoeuvred (directional'~r azimuth) on a vessel, which enable it to be with great accuracy. See dynamic

making up or breaking out joints, Now frequently
power operated.

rPage 84

positioning, bow thrusters.

An expression

of

the thermal value of one fuel

T!racing
A system of steam pipes or electric elements fitted to vessels or pipelines to keep them warm, so that

Trip
See round trip and short trip,

in terms of another, ego TCE - tons of coal equivalent, TOE - tons of oil equivalent

very heavy viscous crude oil, for instance, will I
The chief engineer responsibility of a drilling crew, with overall for the rig in the field. flow freely.

......... _---_

.. ".

Thruslers are also fitled 10lugs. D.P. rigs and (, .. therslation keeping vessels ~

A trip gas, is any gas, which enters the wellbore due to the swabbing effect caused when withdrawing one form of energy a subsea well. necessarily the drill string during a trip. It is not a "high pressure" gas.

\Jft:>rfl
DIrectional Thruster in Pod Fixed and Directional Thruslers

Transducer
An instrument

----,-------_.

for converting

T@pped crude C,Dde oilf~;m-wh;c-h-th~iight

fractions

(~~p/~th;--

into another - for instance, enabl ing acoustic Signals to be used in controlling

T!rue vei1:ical depth (TVD)
The vertical distance below surface-d-a-t-u-m-r-e-a-ch-ed by a deviated well.

Thrusters

J

and lighter) have been distilled off in a Topping Plant.

LOOK

AT

THINGS

DjFFERENH.V

Oil & Gas Handbook

*'C. BANK Of SCOTLAND
CORPORATE

GLOSSARY
1"irlllnk lines
Long distance pipelines:asdisti[lctf;~m gathering, or branch lines. field,
...

- .. __

_.....

- ----

In most modern designs, a production turret (a cylindrical buoy) is built into a cavity similar to a

Ultra Barg@ ClI'lildecarll'oer (ULCC) AClvde oil tanker, often defined-as having a deadweight tonnage or cargo capacity of 350,000
tons or more. See VLCC.

pressure. The practice can be used to minimise

formation damage, particularly in formations
containing highly productive fractures.

moonpool in a floating ship-shaped production TliIbing/itlilbing head Wells are normally produced through tubing, which is installed inside the casing in a well. The Tubing head, similar to the casing head, is installed at the wellhead on the production tubing, it seals off the annulus between casing and tubing, and carries the
connections for production flowlines. This assembly incorporates a tubing hanger, similar to a casing facility The turret is connected to subsea

wellheads by flexible hoses, and is moored in a
fixed orientation. The ship/facility, containing process storage and offloading equipment, is free to rotate or "weathervane" arou nd the turret to present an optimum profile to wind and sea.

A

UDllrasoniic testing

. . .... .. .... _._ ...--,------:-.,--.,---.,---.,----A situation where a participant in a jam Iproduction non-dest~C'~-tlv-e-t-e-s-ti-ng-m-e-t:-ho-d"----in-w-h:-i-c:-h--venture fails to take its full share of production at

ultrasonic waves - (sound waves of frequencies too high to be heard) are beamed at an object and the reflected energy measu red.

the delivery point when due. If not remaining within agreed limits of overliH/underlift necessary with, for example, periodic tanker shipments, oil underlifted may be deemed to be forfeited or "left in the ground"for the pro rata benefit ot all. These provisions are intended to prevent any participant using joint storage to maximise profit on market fl uctuations, to the detriment of the others. See

hanger.

Unassociaited gas See essocietcd gas. Unconformity

See derrick.

A break in continuity of successive geological

-,---~---~-~~~---

lifting.

strata, sometimes providing a stratigraphic trapping
A, AnchOf~

Covers all oilfield tubular materials, but primarily drill

E_

EIlgin",s&UtJlitisEI

F,
D. M. P.

Flaro!!orrlBOOYlmO}' Uilit~
_Otlloadillg HoSE'! Mllurir>ijCh<'lirl& F'rocessil1QEqlJipmerlt QUBrtAIlI&'CcntI'OlRo-om Risur!; StQl1l-gE.l/wPi-Q(i11olillll T1JiTEl A2imu-lrtThILlBlers

permeability barrier. This may occur where, for instance, sedimentary rock has been exposed to
erosion and then re-submerged and re-covered with sediments in a different geological age.
A

A rotary drilling bit, which can be expanded

pipe, casing, and production tubing.

downhole to enlarge the wellbore. See reamer. Underwater habiitat

U R.
$, T. z.

An instrument, which measures rates of flow in a pipeline by the electric current generated by a small rotor inserted in the line.

Surface

An air chamber or structure such as a diving bell in which divers, etc. can live while not working, or a chamber where work can be carried out, such as a

A turret mooring

J

~.tfIl!!IIIIIII&lIIff~

Malor unconformity

subsea enclosure or hyperbaric welding chamber. Undivided interest

TliIrnall'@lIInd
The process completely overhauling a refinery, or

Twistaofl'
-----------

piece of equipment A refinery will undergo a shutdown and turnaround every few years. Turnaround is also the time taken to receive, load or unload and release a tanker of any kind.

Severing of the driflpipe due to fatigue or excessive _~--~---___ .

A legal concept necessary to describe direct ownership of part assets, as with property under a

torque.

...............__________ Geological unconformity

joint operating agreement.

J

UniUplI'odlilctii@n lIInit eitc.
When a reservoir is discovered to extend into more than one concession or licence area, it is common

A fixed price contract for construction, drilling a

well, etc. with th e contractor taki ng the risk of noncompletion. A true turnkey involves the contractor funding the operation until start-up.
........... _ ... _ .. _.---,-----,---Unused storage, tanker, pipeline or process plant

for the partie I pants in the areas concerned to The technique of drilling a well with negative pressure differential between the hydrostatic head of the drilling mud and the downhole formation negotiate a mutual development, sharing costs and production in proportion to the hydrocarbons in place or reserves in each area.

capacity.

LOOK

AT

THmGS

DIFH.RE:NHY

Page 86

Oil

& Gas

Handbook

->i(. BANK Of SCOTlAND
CORPORATE

GLOSSARY
The participant with the largest equity share in the combined unit is usually selected as unit operator to undertake the common development agreement, The negotiated basis of operations is the unit a form of joint operating agreement, which also normally provides for adjustment to participants'shares if the reservoir is later found to underlie the areas in different proportions from those initially assumed.

Vibrating

A sicvo-t ike part of the shale

screen

shaker;f';;-~-;;p~~ati~g

rock cuttings and mud returned from a well.

Vacuum diistiiUation Distil/ation of heavier fractions, at a pressure well
below atmospheric pressure and at accordingly reduced tem psratures, thus saving fuel costs, and avoiding breakdown or cracking of the

Onshore seismic

sUivey based on a mobile vibrating

.... _ .. _-,_ .... _.,,----

energy source rather than on percussion. It is used where roads or terrain will accept the vehicles.

Wael cleaner/scraper See scratchers:Washing-in a weiR

Viisbreaking
A refinery process for cracking and thereby reducing the viscosity of fuel oil».

Cleaning a wellbyr -e-p~la-c-in-g-t-h-e-d-ri-lli-ng-m-u-d-w-it-hwater or distillate.

Universal

coupling

feedstock molecules.

A joint, which permits rotation trom one shaft to be trans m itted to another ina different plane. See, for instance, knuckle joint.

Vapour pressWlre
The pressure exerteciby the vapour from a substance. Also the pressure required to prevent a liquid from turning into vapour.

Washout Viisc@sity/visc@Wls
The resistance of a fluid to flow, due to the mutual adherence of its molecules. Water leak Into the drilling mud downhole.

Unsaturated @iI See saturated hydrocarbons,
-----

Washiover
A fishing tool, which is designed to fit over the end of the fish before g rippl ng it.

(aToil, et~'Variable load
The operating load of equipment. fuel, etc. carried by

Unstabiiliised oil seeslabilised ~rude-o-i/~.----

a floating platform,

Vitrinite See kerogen. V@latility/v@latile
The readiness with which a liquid converts to its gas state. Highly volatile liquids include the light

as distinct from its own Its capacity for variable load

Watermbased mud Drilling fluid based on a suspension of solid~~~~h as Bentonites in water. See Oil-based mud. Water coning See conirig:---------------Water drive Where- a hydrocarbon reservoir is in contact with an underlying water table, the formation pressure Will
drive the water into the rock pores vacated by produced fluids, thus tending to maintain reservoir

unladen displacement An area of a structure wh ere the top of th e

is similar to dead weight tonnage in a ship.

formation is higher (eg. offshore, nearer sea level)
than the point under consideration. In the oil industry, the process whereby an operating company amalgamates with operations

hydrocarbon fractions. Vortex flowmeter
An instrument for measuring flow volumes, based on the principle that a solid body in a flow stream sheds vortices with increasing frequency as flow speed increases.

Upset
The thickening ori~~reased diameter at the joints of tubulars to provide the necessary strength.

further upstream and/or downstream

(see stream)

in order to obtain greater commercial security by avoiding intermediate market fluctuations.

Upstream
The extractive part

of the oil and g;s

industrY-

see

Vertical moored A tethered leg platform.

pRaflorm

VWlgs
Cavities in certain types of sedimentary

pressure and assist production. rocks, often Water injection/water
artificial water drive.

stream. Very Hougecrude carrier
175,000 dwt or over. See ULCC.

(VLCC)

egg-sized or larger.

flood

Crude oil lanker with cargo capacity of arou nd

The injection of water into a reservoit ta create an

LOOK

AT HI!NGS

OlFHRENTlY

Page 88

Oil & Gas Handbook

.>i(. BANK OF SCOTLAND
CORPORATE

GLOSSARY
Wallerill1lg oui
When the proportion of water in production well is so high that it must be shut-in. from a

Weathering

---=---,--,-------,.

_ .................. _

Wellhead
Wellhead is descriptiv80fa production wellhead. location or function, rather than a specific item of equipment See

...
• 0

Well Symbols
~nspecified well @ Oil well 11- Gas wall Oil and gas well Abandoned well Abandoned well with oil show -<jr Al:JaJK!oned wilh gassllow well Dry well

1. Permitting crude oil to stabilise by venting its volatile fractions to atmosphere (not now practised). 2. The process, acting on exposed geological

The proportion of water in the pore spaces of a reservoir. See porosity.

strata.

Wellhead

~--~~--~------~~---An offshore platform designed to support only wellheads and associated piping, production being transferred to a shore-based gathering station or nearby platform for processing. Sometimes called a drilling platform, if equipped with an integral rig and drilling facilities. fluics

platform

4-

"* -<r

*

+

.... Abandoned 011well Abandoned gas well c;) Water injection well ill Gas lnlactlon well "" Dual completion-oil .. Dual completion-gas ¢ Well drilling ct> Tight hole

Weevil Water separation
Removing the water from a production flow of oil or gas. There are several techniques including settlement, heating and electrostatic precipitation, particularly for breaking down water-oil emulsions. An inexperienced and therefore accident-prone oilfield worker.

Well symbols

J
Well testing
Testing in an exploration or appraisal well is directed at estimation of reserves in communication that well, in addition to well productivity. Testing in a production well also monitors the effects of cumulative production on the formation. Tests basically consist of a series of measurements with

Weight

indicat@1f'

A large instrument on the rig floor, which displays the weight of the drill string, and hence the

Well permit
Government permission to drill a well. Obtaining th.s is frequently a detailed process.

Wa1i:ell' table
The level in the earth below which rock pores are saturated with water.

pressu re on the drilling bit

Welding

bug
The engineering design and technical/operational plan for drilling a well, completing and testing it

Welding head of an automatic welding process.

Wave period
The time separating successive crests of similar waves passing a given point Normally steel-lined boreholes, drilled to search for or exploit hydrocarbon reservoirs. See appraisal well, borehole, commercial ~easures and records the dead well, delineation well, confirmation well, well,

of pressures, fluid flows and temperatures downhole (PVT) in a controlled sequence of flowing and shut-in periods for recovery of stable reservoir

(as applicable).

Wave recorder
Aninstrllinent,~hich height and frequency of waves.

Well sell'VRcill1lg
..

well, development

_ __ _ _ _ _------:--The maintenance procedures performed on a well after the well has been compleled and production

__

conditions. The time taken to recover is also recorded . Various forms of well stimulation funcfionir-q of well equipment. may be built into the sequence. Tests will also Include the

discovery well, dry hole, exploration production sidetracked

well, gasser,

gusher, injection well, killer well, offset well, oiler,

from the reservoir has begun. See workover.

Wax
Paraffin waxes are found in crude oil and may be a significant proportion of It, requiring special treatment to allow the oil to flow freely at surface conditions.

well, relief wei!, satellite well, service well, well, stabilised wei!, stepout well,
-_. ---

Wei gas
Natural hydrocarbon gas containing significant amounts of naturally liquid hydrocarbons.

subsea well, suspended

well, well completion,

wild

An explosives expert who uses downhole explosions to stimulate production.

cat well, wild well, well symbols, among others.

Well symbols Weather will1ldow
c-;--""-

Weiiree
A subsea weI/head tree, which is exposed to the water rather than enclosed.

The process of equippr.q a well for development use as a producer, injector, etc, for example, perforating, running tubing, 'fitting wellhead equipment, etc. The expression also covers the eculpment installed. A well may, for example, be described thus: "Type of completion - Upper Jurassic producer."

Conventional symbols used in mapping to show location and type of well.

The period of relatively good (summer) weather within which a given offshore operation can take place. A weather window can also occur in winter, but is usually hard to predict and of short duration.

WetweUd
Underwater welding, as opposed to normal atmospheric welding or hyperbaric chamber welding.

Page 90

Oil & Gas Handbook

.*. BANK OF SCOTlAND
At
THINGS

t.oo e

!JIFFHH:NHY

CORPORATE

GLOSSARY
Whipstock
A tool for deviated drilling; basically a wedgeshaped block, which is lowered into the weI/to divert the bit onto a chosen path at an angle to the

Whittaker

capsule

W,O.C.time

... _--------,._-----_,---

measured incremental

or predicted feedstock

on the baSIS of adding to a fixed throughput.

A type of survival capsule.

Time when a rig is waiting on cement to set.

r

White oil/white

cargll»

original hole.

Clean or distilled petroleum, or products

----,----_.

Yield p@int
A full equity interest In an oil or gas concession, as distinct from, for instance, a royally entitlement net profits interest. or The force needed to start a fluid flowing, ie. to overcome its viscosity or thixotropy.

not

Including heavy black residues or crude oil.

A product of crude oil distillation in which several fractions are combined, Whipstock distillate/residual usually at the heavy fuel oil end of the range.

Worlk:owew
A maintenance equipment job on a well, usually to replace or 10 stimulate production.

')1

Wildcat weHI
An exploration weI/in an unproved area. A reference table of freight rates between most are ports in the world. Actual freight contracts

Zao.yiic

catalyst
-_.....
-

,;.j

';1

J

i

A type of catalyst used in catalytic crackers.

-------:-----

';j
"1

WiildweU
A well au! of control: a blowout

usually fixed at Worldscale mi n us a percentage cond itions.

for the route, pi us or freight market

Zone
--_.

factor reflecting

1.

__ ..... The interval between

two depths in a well,

.1

l WindowmHn
A down hole cutting tool used to cut an aperture laterally in the casing through deviate the well, which to sidetrack or

containing

a reservoir or other distinctive

characteristics.

::;1
"'I

Chisel point. \

WOw time Time when a ng or
continue.

2. Specific areas where restriction s apply, such as
installation vessel, etc. is waiting can a safety zone (around an offshore danger zone (military activity area). installation), before operations

on weather to moderate

Cement plug

Wirenne

A system in which a flexible cable and reel is used to lower log or maintenance considerable equipment down a and well, rather than a rigid drill string. This may give savings in equipment, manpower

----:--,-;--,-------::-----:-;-

Milled casing

time.

Bit

Yield Wobbe index
An expression of the heating value of a gas flame, It is derived by dividing the used in gas marketing.

--

_._-

--

The total amount of product of a refmery process or of all products compared of all processes of a refinery, amount of feedstock. and of all with the equivalent

gross calorific value of the fuel by the square root Original hole Sidetracking with a whipstock of its specific gravity. The Wobbe index is commonly expressed in megajoules per cubic

A "refinery yield" for a given crude oil feedstock refinery will include a table of amounts products

derived from a barrel or ton(ne) of crude commonly use several

J

metre or BTU per cubic foot.

minus the refinery's own usage for fuel, flaring and other losses. Since refineries feedstocks simultaneously, such a yield is often

LOOK

AT

THiNGS

DiFFERENTlY

Page 92

Oil & Gas Handbook

.>ie. BANK

OF SCOTLAND
CORPORATE

A CHRONOLOGY
DECADE ----------

OF THE MODERN

PETROLEUM

mNDUSTRY

UPSTREAM/DOWNSTREAM

--------_+__

1840

• Rotary drilling rig (Beett)

• By this time, coal-gas established • demand for lighting

1850

1

• Anticlines identified with oil traps (Logan) • Oil from bituminous "cannel" coal (Young) • Oil from shale (Perkins) • Oil creek no.1 well (Drake) • Air lift and gas lift in wells • Air/gas burner (Bunsen) • Oil developed for kerosene lighting • First gas engines

1860

1870

1880

1890

t t t t

• (LenoirlDe Rochas)
• Four-stroke internal combustion cycle (0//0) • First purpose-built oil tanker (Nobel Bros.) • Drilling "mud" • Incandescent mantle for lighting

• (Von Welsbach)
• First long-distance gas pipeline - 120 miles • Voyage of the "Murex" opening world markets (Shell) • Compression-ignition • Roller-cutter drill bit • Mass-produced engine (Diesel)

1900

t

cars (Ford)

• Powered flight at Kitty Hawk

1910

~

• (Wright Bros)
• Water-flood in reservoirs • Thermal cracker (Burian/Amoco)

1920

1

• Torsion-balance gravimetric survey • Use of depleted reservoir for seasonal gas storage • Seismic reflection surveys (Karcher/DeGolyer) • Electric downhole logs (Schlumberger) • Hydrogenation/synfuels • Barite in drilling mud • Hydroforming/100-octane • Shallow water drilling barges • Radioactive logging aviation fuel (Ferben) • Railways converting to diesel

1930

I

• Tetra-ethyl lead as gasoline enhancer (Bergius, Fischer-Tropech)

1940

1
~

• Catalytic cracking (Houdry/Sun) • Gas turbine "jet" engine (Whittle) • Gas stored seasonally as LNG • Fluid catalytic cracking (Standard Exxon) • PLUTO-submarine pipeline
LOOK I\T THINGS D!FFERENHY

Page 94

Oil & Gas Handbook

*<. BANK Of SCOTL.AND
CORPORATE

DECADE

UPSTREAM/DOWNSTREAM

----------

1950

• First "offshore" development (Kerr-McGee) • Transcontinental gas pipeline • US Gulf to New England (1840 miles) • Jack-up Drilling Rigs • Voyage of the "Methane Pioneer", LNG, • LNG,USA to UK (Conch)

1960

1970

!

• Semi-submersible

drilling rigs • Catalytic reforming of "gas oil" (lCi) • Large-scale LNG shipments, Alteria to UK

• Gravity concrete platform/storage

offshore (Phillips)

j
1980
1990

• Floating production from subsea wells (Hamilton) • "3-D" seismic surveys • Dynamic positioning offshore • Rankin remote gas field developed, LNG to Japan from 1980s • Deep water production (Petrobras) • Horizontal drilling to enhance production (Elf) • Zeepipe - Norway to W. Europe • Piper Alpha disaster-new safety criteria • Life-of-field FPSO's for small/remote fields • (BHP, Kerr-McGee, etc.) • Environmental concerns predominate in fuel specifications • "Oceanic" pipeline planned, Middle East to Pakistan/India • First oilfields developed in the West of Shetland • Deregulation of the gas industry in UK/Europe • UK - Continent Interconnector - 143 miles • Prominence of environmental issues • Prominence of multilateral well technologies

2000

!

!

With acknowledgements

to Petroleum Economist

lOOK

AT

THINGS

DIFFERENTlY

Page 96

Oil & Gas Handbook

.>!<-

BANK OF SCOTlAND
CORPORATE

r
Ifil--- .----II.~ ~
Q

AGE OF THE EARTH

-o
Q

-o

~ ~ r-;::--~ .~ ~ r-:" ~ ~ f---t--~-t---· ._-.-- -. ~.. '" ~ J:'l .~ ~ z
ill rn c;

.,
u

c

<> <> Q

Ij :5'"
:il

5'

E

f---t---t---t-----It--I-~·····--

.... -..

-.-*-J.-

- ---------frrJl--+---+------+-+--'-'
----.I---~__+-I____+_____I-+__+t_(,.-+

+---1--

~

6 ID

0

9 0

'"
0)

'l'
0 <)) <0

OJ

'\'
0 00

0 0 0 N

;'!
ill
()

'"
».
'0

;::
'S;
0:: OJ

'(ij
if)

c
()

~ '"
i2 co
;>, OJ

'" :S "0
0

'"
lI)

«i
:;::;

ill

'§_ '6
ill -0

ru

j

"?

., c
E

~
III 0. ill

S ;,;
OJ

I

L

iii

l1li

'"

~
0 III

2 u
Page 98 Oil & Gas Handbook

.>r<. BANK Of SCOTLAND
CORPORATE

ORGA.NIC

DEVELOPMENT

Om:: HE EARTH T

MILLIONS OF YEARS AGO

ERA/PERIOD CENOZOIC MESOZOIC SEE FOLLOWING PAGES FOR

SIGNIFICANT

EVENTS

COMPOSITION OF ATMOSPHERE

'"

!

~

]

;=

~
3Nldl'tf 31aOl~

:;,

R

en o,

OJ

'"
OJ OJ

~ c
3NldW 311t1

60
225

PRIMATES MAMMALS/REPTILES 23% O2

1~1
$

ft.."<1' .....

~;~
]i

en

~ s

.~

e

~ ~
\

I

i

~ 1

!

!l

PALAEOZOIC

DETAIL
z
a: w
c, c,

FISHES

600

<l;

Z
>cc ::<::

~
a:
UJ

Cl <l;

FI RST MICROSCOPIC ALGAE MACROEUCARYOTES N2 BEGINNING OF SEXUAL REPRODUCTION

!tl

g
cj:;f

1000

-

t:>

fi a
a:
UJ f-

I--

~

>~

a
a:
n,

~ -'

:z

"" ;;<
UJ

<l;

~:
g £
~I!<

0:

.2

~

;;

~

.~
is

~

¢

~

;;< :2 a

<1;

::J

:r:

BEGINNING OF EUCARYOTES, PROCARYOTES DIVERSIFY

~
OJ 03 LAYER

1700
<.>

«

g

2000

-

Z <1;
ID

6 N a
UJ :0:: t:>

:z
UJ

AEROBIC BREATHING OXYGENATED ATMOSPHERE DEVELOPMENT OF AEROBIC SYNTHESIS

&.

'" i:'
l:':'

li;

<C

a;

iii

°2
N2

::;;

2600

« t:>

a:

:c c,
<C

CO2

<1;

g::
6 N a
:c t:> a: u

UJ

." ~
~
FIRST STROMATOLITES ANAEROBIC BACTERIA H2O NH3 CH Compounds HCN4
";'.~

~

:. :. "'S

;!

3000

-

..:y
Z

,::,~
z

rffi

f::."?'

"
.~ E

F'~

n
~ lij

c:! ." ~~ .§
.:1i

_'jg

.~~
~t=

~-~ '"
~~

~

UJ

<1;

:.::

i5 <1;

L'5 ::<::

Z
UJ

'-' a:
<1;

~ w

3900

-

'"

FIRST SEDIMENTARY

ROCKS

W

i

Z 0

i ~
~.

'il 1.l
0:

s

s

..lI
FIRST KNOWN IGNEOUS ROCKS

c
<It
..J ..J

4000 4400 4600 4700 16000 20000

-

-

-

,___

FORMATION OF CONTINENTS FORMATION

AND OCEANS

~ ~

He OF THE EARTH FORMATION OF THE SOLAR SYSTEM OF OUR UNIVERSE

~

~~

2 e
~ iO

9

c"

~ ....

III fII

~ ~

f
0:

~

:;;

I~t
'" '"
g

~ "' ~ '! ]I

~ ~ f,
:;;

!

~

i

:ii

~

a. " g

!

"
s

."
<l:

~ .8
.e

-:

~

'i'!

:;;

?

~~ ~~ ~

::2:
t.)

N

is
0
N

'i

s:

en UJ

e
<! Z
0: !J.I !J.I

-" ~

s

if.

~

~

:2

1" .~

.". is

~

J
~

~
cc to
'",

~ '"
s: a.
OJ

c

G

i'l

g,~

~~

8'=

~ ~
til

FORMATION

Based on Total: "Echelle Stratigraphique"

e
...!I

..
ec;

>

f

'"
E

Z

~r-

iii(

OJ -" U) c
0
-0 OJ til

0
Page 100 Oil & Gas Handbook

....

Z:J :JIOZON3:J
;'00,," AT THHH"s

OJ

'"
E

DifFERENTlY

.>!<. BANK

OF SCOTLAND co R po R AT

0...

"' '"

0>

3Nld1\1 31\11

(NVINhOH3HJ NVOISHVA

NVINom1VO

i
0...
N

u

u
C) '';::;

:::f C C

'--"'

o o

z

~

a:
ro ::2
<C

(_) W

a:
CL

OJ

.J: (j)

Z!ftI :JJOZOS3ift1

"0 OJ <II OJ

"
o

Zd
:JIOZ03lVd

III

Page 102

Oil & Gas Handbook

*. BANK OF SCOTLAND
to on
AT THINGS DIFFERENtlY

CORPORATE

NOTES

10. Various authors attribute 1. As no satisfactory fossil succession has been established in the Pre-Cambrian, no time-stratigraphic subdivision is possible on this basis. An age classification, disintegration, although especially useful for the the Maim.

the Aalenian

to the Lias and the Callovian

to

11. Arkell (Jurassic Geology of the World, 1956) accepts Berriasian as a distinctive stage at the base of the Cretaceous, below the Valanginian. 12. The term "Weald on" is omitted, as it represents a rock-stratigraphic unit of

based on radio-active

sub-division of the Pre-Cambrian, has been omitted here. 2. Tremadocian (Salmian); Cambrian-Ordovician Cambrian by various authors. 3. British geologists regard Gothlandian as a synonym of Silurian and give the Ordovician full systematic rank below the Silurian. 4. According to Gignoux (Geologie Stratigraphique, of the Lower Gedinnian; 1950) the Downtonian is transitional beds attributed to the

variable age within the Lower Cretaceous (and uppermost Jurassic). The term "Neocomian" is omitted, as it lacks precision. 13. The stratigraphic position of the Vraconian and the Danian has not yet been definitely established. 14. The terms Sparnacian and Thanetian, and Tortonian and Helvetian, as originally defined, seem to be based on facies faunas. 15. Various authors place the Aquitanian in the Oligocene.

the time equivalent uppermost Silurian. 5.

other authors consider

it as

Strunian: Devonian-Carooniferous the Devonian.

transitional

beds, generally attributed

to

16. The terms Astian and Piacenzian (Plaisancian) seem to be based on facies faunas. No time-stratigraphic term is in use yet for the interval between

6.

Schenck

et al (BuII.A.A.P.G.,

Vol. 25, 1941) have proposed

a "Standard

Pannonian and Calabrian,

Permian" of the world: Upper Permian - Djulfian Penjabian Middle Permian - Guadalupian Lower Permian - Artinskian Sakmarian 7. The classification of the north-west European Permian and Triassic is mainly based on rock-stratigraphic 8. Rhaetian; Triassic-Jurassic various authors. 9. Some stage names in use in continental Europe have been included, although they are not in Arkell's subdivision of the Jurassic (Jurassic Geology of the World, 1956). characteristics. transitional beds attributed to the Jurassic by ]

LOOK

AT

THIIliGS

OlfF~R<;NTlY

Page 104

Oil & Gas Handbook

.)j(. BANK Of SCOTLAND
CORPORATE

EXPLANATORY

NOTES

here are numerous abbreviations used in the Oil & Gas industry, many of them of interest only to technical specialists. This list excludes, for instance, the extensive vocabulary of geological commonly and descriptive abbreviations daily reports, used seen in well geologists'

(Barrels per calendar day, per stream day, etc.). Likewise the abbreviation BH (Bottom Hole) for instance, may extend to BHP, BHT (Bottom Hole Pressure, Temperature,

etc.), Unless a
are only

specific reason exists for separate inclusion, the basic term and the other components listed separately. Combinations inferred from the context. A special point to note is the difference annotation in can usually be

and product or fraction name abbreviations in refining reports. Also excluded are mnemonics consisting of

between US and European industries and Millions. The prefix cubic feet) and denotes 'thousand in the US

as regards Thousands

the initials of organisations (The United Kingdom Association),

such as UKOOA in common

'M' conventionally

Offshore Operators'

(especially MCF - Thousand frequently

and abbreviations

millions are 'MM'. Elsewhere, the prefix 'M' denotes millions, and the letter being adopted for 'thousand', 'K' is increasingly

use outside the industry, (c.c.: cubic centimetres; p.s.i.: pounds per square inch, etc.), Many other abbreviations term with conventional consist of a basic to prefix or suffix. Thus a

to conform with the metric convention. The user should always check the meaning of this prefix in each case. The reader is also referred to the difference in volume between the US and the Imperial gallon.

Barrel per day (BO or BPO) may be extended MMBD - Million barrels per day, to BPH, BPM (Barrels per hour, per minute) or BPCD, BPSD

J
lOOK AT
TH~NGS D~Ff~RENTl'"

Page 106

Oil & Gas Handbook

.>."<. BANK Of SCOTLAND
CORPORATE

COMMON ABBREVIATIONS
BKB BL B1'M BO BOP BPD BS BSStW BTU COIF COH DS DSS DST DSV' DTD DTC DWA DWO DWM

Below Kelly Bushing Barrels load (or feed) Bill of Material Barrels of Oil Blow Out Preventer (etc.) See above Basic or bottom Sediment (eg. crude oil shipment adjustment) Basic Sediment adjustment) British Thermal Unit and Water (eg. crude oil shipment

Calculated Coming (sometimes

Open Flow COOH) (COOPSS Service

Directional

Survey

Out Of Hole

Days Since Spud. Drill Stem Test Diving Support Vessel Driller's Total Depth Dealer's Tank Car Drilling With Air Drilling with Oil Drilling with mud

A
atHl'.

Absolute Acre-feet Annual Contract (UK Gas Sales) Authorization Quantity

COrlltam Contaminated CO~Op Company-operated.
Company Station) Operated

ACQ

AFIE AMD AOf! API ASTM Avail

for Expenditure

(usually Capital Expenditure) Area of Mutual Interest Absolute American Standard Open Flow potential Petroleum Institute's definition

CoQ Cp CP CPF CPSI CQ CRKG CSG CTC C1'1" CU C&.W

Certificate Centipoise Cathodic Pressure Cathodic Cathodic AsCoQ Cracking Casing Consumer Consumer Clean Up

of Quantity/Quality protection/Casing protection protection flowing shut in

American Society of Testing and Materials Available (ie, in inventory, etc.)

EO
Tank Car Transport Truck

Emergency

Order

(for materials, services etc.)

81' BASE
DbO

C, CAPEX Ca.t. C&'C
Base or Bottom (eg. of a formation),' Basement Barrel(s) Barrels of Condensate/Bottom Choke Billion Cubic Feet (109) Barrels of Condensate (cubic feet) per Million Below/Billion rock (eg. granite)

Centigrade/Celsius/About Capital Expenditure Catalyst/Catalytic Circulating Catalytic Calendar Cement Cubic feet (CFG; Cubic Feet of Gas) Coring Cased Hole Cubic Feet per Barrel Com pressi on-Ig nitio n Cost, Insurance, Freight (included in price) Cost and Freight only Cetane Number Cleaned/Circulated Out Clean Out and Shoot well and Conditioning Cracking Unit Depth (drilling fluid)

Coat and Wrap (eg. pipeline protection)

IEPMC IERD IESD ESP leW EWT

(etc.) See Page 36 Extended Reach Drilling Emergency Shut Down Pump Electric Submersible Exploratory Well Extended Well Test

BC BCF BCPMM BID BOO BDPOJ BH BMP
Page 108

CCUl CD ClEM. CIF Cg C/M CFB

Day/Contract

D&.A DC DCQ DH DL DO DP DRL DRLG

Dry and Abandoned Delayed-action Daily Contract (UK Gas Sales) Dry Hole Density Log (also DENL) Drilled Out Dewpoint/Drill Dynamically Drill Drilling Pipe/ Platform/ Positioned Data Processing/Drilling Coker Quantity

Barrels per Day. Also BD, BPD, BOPD (oil) (B/H; Barrels per hour, etc.) Barrels of Diesel Oil Barrels of Distillate Per Day Bottom Hole Bottom Hole Pressure

cm

cn::::
C&F CN CO COStS

FBUP FARO FC FCC FD FFO FGgH FI FLOUR.

FI

Flowing/Flowed Flowing Bottom-Hole Flowed At Rate Of Filter Cake Fluid Catalytic Formation Cracking Density Pressure

Furnace Fuel Oil Finish Going In Hole Farm In Fluorescence

Oil

& Gas

Handbook

*. BANK Of SCOTLAND
THI~GS D~FF~RENH_Y

lOOK

AT

CORPORATE

COMMON ABBREVIATIONS
FO FOB
Farm Out/Fuel Oil/Faulted Out to

Free On Board (eg. customer pay freight and insurance) Fuel Oil Equivalent

FOE Floating Production Facility FPF Field Purchase Order FPO FPSJ'FPSO
Floating Production See Page 39 Systems. Report

GSO GSG GW GWC

Good Show of oil Good Show of Gas Gas Well/Gallons Gas Water Contact of Water

UM

Left In Hole Leak Lowest Known Oil (in a reservoir) Low Level Shut Down Liquefied Natural Gas Oil Pipe Low Oil/Lube

Jl&A .!lOA
liP

Junked and Abandoned Joint Operating Jet Propulsion Joint Venture Joint Operation Agreement (specification) Fuel

J.B. JIO Hi' HC UFO HIO HIP HPHT HTSD
HLSD
H igh/H ig her/Heavy Hydrocarbon Heavy Fuel Oil Heating Oil/Heavy Hydrostatic Oil Power Pressure/Horse shut down shut down)

ILK ILKO ILILSD ILNG ILO ILP LPG

Low Pressure/Line

Liquified or Liquid Petroleum Gases (eg. propane, butane) Log Total Depth Less-than- Truck-Load Low Temperature Low Temperature See HTSD Low Viscosity Load Water (etc.) Separator Shut-Down.

FR FS FSIP FTP FW

Flow Recorder/Final Feedstock

Final Shut-In Pressure Flowing Tubing Pressure Fresh Water/Feed Water

LTD ILTIL ILTS ILTSD
L.VD
Thousand (European)

Index

High Pressure High Temperature High temperature (eg. plant automatic

K k

LW

Knot. Nautical mile per hour/ one nautical mile Kelly Bushing Kelly Bushing Measurement Kicked Off (deviated wel!)/ Knock Out. See Glossary Kick-Off Point

High Level Shut Down Hook-Up and Commissioning

HUC
Gas/Gallons G General and Administrative costs G&A Geological and Geophysical costs G&G Gross Acre-Feet GAF Gallons of Condensate Per Day GCPD Gas Condensate Ratio GCR Gas Down To (in a reservoir) GDT GF!lU Good Fluorescence Gg Gas Injection Going In Hole GBH Gas Liquid Ratio GILR Gas Oil contact GOC Gas Oil Ratio GOR High Gas Oil Ratio HGOR Gallons Per Day GPD Gallons Per Hour etc. GPH Gravity Degrees API GII'.APm GRIN! Goods Received Note Good Show of GS

KB KBM KO KOP KW

Mi' MAC MCF Md MD MTD MFO MG MmM MUIR MUU MIL MLW MM

Middle/Medium/Thousand Million (European) Medium Amber Cut Thousand (European) Millidarcies Measured Measured Multigrade Moving In Materials Moving In Rig, etc.) Moisture, Impurities and Unsaponifiables Mud Log/Mud Million (US) or Million Cubic Feet (permeability) Depth (well) Total Depth

(US)/

Killed Well

Ii'

Initial!!nsid e/I njection (eg. IBHP Initial bottom hole pressure)

nD mG UP
IR:

Inside Diameter Imperial Gallons (also Imp. Gal) Institute of Petroleum/Initial Pressure Injection Rate Injection Well

LI

Low, Lower/Level. Left-hand Level Alarm Lost Circulation Level Controller

See LLSD/

Medium Fuel Oil

ILA ILC !lCI.
LD

(drilling fluid)!

OW

Less-than-Carload-Lot Laid Down Laid Down Drill Pipe Light Fuel Oil

(grease testing) Logger

lDDP lFO

Mean Low Water (eg. port data)

Page 110

Oil & Gas Handbook

.* BANK OF SCOTLAND
tOOK AT THINGS tll~H~I:!_NTl\'

CORPORATE

COMMON ABBREVIATIONS
MO MON MSL MSP MSR MWD
Moving Out Motor Octane Number Mean Sea Level Maximum Surface Pressure Materials Services Measurement See Page 52 Requisition While Drilling.

OUi OIP ONiR OPEX ORRI OS O;S OTS&IF OWC

Oil In Hole Oil In Place Octane Number Requirement Operating Overriding Oil Show Out of Service Odour, Taste, Stain and Fluorescence Oil Water Contact Expenditures Royalty Interest

PS PSA PSC
PSI

Pressure Switch Packer Set At Production Sharing Contract. Interest/ See Page 65 Profit-Sharing Pipe, Seamless Pipe, Spiral Weld Picked Up/Pumping Production (PI atform, etc.) Unit Utilities Quarter Pounds per Square Inch

REQN
RHiNI

Requisition Rockwell Hardness Number Royally Interest Ran In Hole Road and Location Complete Reamed Reversed Out Return On Investment Rig On Location Research Octane Rate of Penetration Remotely Operated Retail Pump Price Railroad Returnable Steel Drum Running Tubing Road Tank Vehicle Rail Tank Wagon Rigging Up Reid Vapour Pressure Railway Railroad VehicielVessel Number

PSM PSW PU PUQ
PV

Pore Volume Pressure- Volume-Temperature

PVT
HI
NotfNon/No/Net Nippling Down/Not Drilling Non-Destructive Net Effective Pay Natural Gas Liquids (condensates) Not Normally Manned Net Profit Interest No Show Nippling Up No Visible Porosity Not Yet Available Testing

ND NDT NEP NGiL HNM NPm NS NU NVP NYA

PI P&A PRD PCO PCV PDD PDQ PE.RM PDC PKR PL PN PO POOH POR P&P PPD P.P.G. P.P.M. PRC

Pressure/Porosity/Permeability Plug and Abandon. See Page 62 Plugged Back Depth Costs Parent Company Overhead Pressure Control Valve Pressure Differential Production, Quarters Permeability Pressure Indicator/Controller Packer Pipe Line (also P/L) Performance Number platform Indicator Drilling and

QUAL. Q&O
QTV

Quality Quantity Quantity and Quality

RR RIHI R&LC HMD RO ROI ROL RON ROP ROV RPP RR RSD RTGi RTV RTW RU RVP RY IRR

RI

Right hand/Recorder/Record/ Report Radioactive Log Bushing

Sf

S ub/Side/Surtace/

Stan dard/Stati c

(Aviation Gasolines)

Of

Oil/Out/Outer/Over Oil Based Mud Oil Change Outside Diameter Oil Down To Oil Equivalent Oil Fluorescence Open Flow Potential Oil and Gas

Purchase Order Pulled Out Of Hole (also PO H) Porosity Porosity and Permeability! Porous and Permeable Pour-Point Depressant Pounds Per Gallon Parts Per Million Pressure Recorder/Controller

OBM O;C OD. ODT OEOFLU OIFP
0&0

IRALOG IRB RDB~ RBP RD RDTP RE.CIP REFORM

Rock Bit/Rotary Retrievable Round Trip Reciprocate,

Rotary Drive Bushing Bridge Plug Rigging Down Reciprocating, etc.

Sap No Saponification Number SAT Saturated SBHP Static Bottom Hole Pressure SISSV Standby safety support vessel SC Show of Condensate SCIF Standard Cubic Foot/Feet SCIF.lDStandard Cubic Foot/Feet per SClFfH Standard Cubic Foot/Feet per
hour

day

Reformer, Reformate, etc.

SD

Shut Down/Stream

Day

LOOK

AT

THINGS

DiFFERENTlY

Page 112

Oil & Gas Handbook

'>l<- BANK Of SCOTLAND
CORPORATE

COMMON ABBREVIATIONS
SDTK
Sidetrack Shut In (eg. SIWHP Shut-In Well Head Pressure) Synthetic Natural Gas Poinlf

sa

TBA. T&BC TBG T.lC TCF TCV TD
TEL

Tyres, Batteries and Accessories/ Tertiary Butyl Alcohol Top and Bottom Chokes Tubing Tank Car Trillion Cubic Feet (1012) Temperature Control Valve Depth Target Depth/Total Tetra Ethyl Lead Tight Hole Top Hole Flowing Pressure Temperature Tankage Tanker Indicator

U.lS USG

Unserviceable/Not

fit for Service

United States Gallons

WTI

WSW

Water Supply Well West Texas Intermediate (crude oil) blend

SNG SP S5 5SV SSSV

WUT

Water Up To (in a reservoir)

Surface Pressure/Shot Self-potential Sub Surface/Sub Stain-less Subsurface Steel Sea/

Safety Valve

Subsea Safety Valve (eg. on pipelines)

Stock Tank Barrels (stabilised oil) STa STH Sidetracked Hole STOmp Stock Tank Oil In Place STOORP Stock Tank Oil Originally In Place STORBP Stock Tank Oil Initially In Place Standard Temperature and STP Pressure

TH THFP

TH

SnD SUS SV SW SWD SX

Sidetracked (oil viscosity) Support

Total Depth

Saybolt Universal Seconds Vessel Well/

Salt Water/Suspended Water Saturation Salt Water Injection Salt Water disposal Sacks (eg. cement), (also SKS)

swe

TVD TVP TW Y&W

TT

TML Tetra Methyl Lead Top of cement TOC TOF Top of Fish TOPG Topping (distillation) T.(pay Top of pay (formation) Temporarily Shut Down TSD TSI Temporarily Shut-in TST Test Too Small To Measure TSTM
Tank Truck/Through True Vertical Depth True Vapour Pressure Tank Wagon Tarred and Wrapped (eg. pipe) Tubing

TKR

TKO

VolumelVoltlVery VI VELIL. Velocity Viscosity Index V. Viis Viscosity VLA.C Very Light Amber Volume VOL VP Vapour Pressure V.lS Velocity Survey

x: over
Cut

X

Cross Crossover Christmas Tree

x tree

YP WI WC WD WF WH WHIP WI WLY WO
With Wildcat/Water (lWell) Water Flood Well Head Well Head Pressure/ Well Head Platform/Protector Working Wire Line Test Work Over/Waiting a/orders; RlRig; W/Weather) On (C/cement; P/pump; Permit etc. (subsea) Injection Interest/Water Cut Disposal Water Depth/Water

Yield Point

Z

Zone

1"1

Top, Top of/Temperature/ Total/True/Trillion Turn around/T em porarily Abandoned Tank Battery

TA. TB
Page 114

UI Upper U/C Under Construction UHF Ultra High Frequency UNCONF
Un conform ity

W.lO WOB WSD WSO

Without Weight On Bit Depth Whipstock

Water Shut Off

LOOK

AT

THINGS

tHrFl':R'ENTlY

Oil & Gas Handbook

.>i(o BANK OF SCOTLAND
CORPORATE

The progress,

success, and productive

potential

of a well is monitored These

by cores, flow tests and various down hole measurements.

measurements, the records they generate, and the tools which make them are all known as "logs". Logging companies market their services under numerous proprietary names. However, some of the main types and principles of logging are shown below.

Drilling and Casting Logs
Borehole Geometry Tool. Measures the size of uncased borehole cavity by means of two independent calipers. CBB. Cement bond Log. Uses sonic principles to test the degree to which casing is fully bonded to the borehole wall by cement in the annulus e.g. prior to perforating a section for production. Casing Collar Locator. Locates the position of joints in a casing. Used to monitor the position of tools inside casing, and control the depths of the readings given by them (again, ego prior to perforating).

En

Electromag netic Thickness Tool. Monitors metal thickness in examining egothe corrosion of casing. Measurement While Drilling-See Formation Evaluation Logs. Stuck Point Indic,:,tor. Run on stuck drill pipe to indicate the depth at which the problem is occurring. Variable Density Tool or Log. Run with a Cement Bond log to

WELL

improve interpretation of results.

LOOK

AT

THINGS

DIFFEI1Er-IH"l'

Page 116

Oil & Gas Handbook

.)!(. BANK OF SCOTLAND
CORPORATE

WELILLOGS

Formation

Evaluation

Logs 61..
Induction Log. Used with oil-based mud to measure formation conductivity by means of an electric current induced in it from another current generated by the too!. There are various combinations of the IL such as the IES or the ISF which combine Induction Logs with Spontaneous Potential, Spherically Focussed and other Logs. lL Laterolog. An electric log to measure resistivity of formation at different distance of investigation from the well bore. The Microlaterolog provides high-resolution reading of formation boundaries and resistivity measurement in the Invaded Zone. MDT Modular Dynamic Tesler is an updated RFT, which provides an in situ measurement of reservoir pressure, an advanced reservoir fluid sampling capability and under the right conditions a dynamic measure of anisotropic permeability.

I!3IH1C Borehole Compensated sonic. Uses sonic principles to determine the relative proportion of fluids and (rock) solids in a formation, and hence the porosity. BHT Bottom Hole Temperature. Measures temperatures at different depths in the well. Temperature increases with depth (about 2'F per 100 feet). CET Cement Evaluation Tool which uses sonic measurements to provide a more detailed evaluation of the cement bond between casings or casing/formation than its alternatives namely, CBUVDT NDL. CNIL Compensated Neutron Log. Responds to the presence of hydrogen in a formation. In conjunction with other logs, it is used to differentiate oil and gas bearing zones and it is commonly used to measure in situ porosity of porous media (rocks). CPU Computer Processed Interpretation. Process primary log readings to indicate various physical characteristics related to depth, e.g. fluid content, saturation, porosity and some lithology indications.

MWO Measurement While Drilling. Allows the measurement of certain petrophysical and drilling
parameters during the course of drilling operations.

PeT

Production Combination Too!. A combination of down hole flow meter, gradiometer, thermometer, caliper (bore size) and manometer (pressure), used to control pertorrnanoe in producing wells.

DARCILOG
Measures permeability of formations in situ, by analysing the sonic response from a pattern of sound waves emitted. PST

Production Sample Taker-for accurate identification of fluids produced by a given zone in the wei!.

II:m..

Dual Induction Log. Measures the conductivity of formations at different depths. Conductivity is the reverse of resistivity (see Laterolog). Generally used with the highly resistive oil based muds where usual resistivity measuring tools fail.
'

RIFT
.:

Repeat Formation Tester. A wireline tool for taking a series of test measurements at various depths, during a single trip in a wei!. Spherically Fccussed Log. Obtains better measurement of data being logged, from a

EWIR

Electromagnetic Wave Resistivity. High resistivity readings in logging porous media indicate hydrocarbons. The EWR is used to enhance readings in thin layered formations. ••. . $ON SP

micro radius beyond the bore hole wall. Short Normal Log. A resistivity log with a short depth of investigation. Spontaneous Potential Log. Measures the natural electric voltage in a formation, indicating the water salinity and giving a related indication of permeability. TIDT Thermal Decay Time. Used to measure changes in water saturation behind the casing, and detect the advance of water flooding in a producing reservoir. WST Well Seismic Too!. Used to take measurements of seismic travel time from formations at various depths in a well, providing a calibration point for seismic survey interpretation when mapping.

IFCL

Fluid Capacitance Log. Measures in a producing well the capacity of a formation to produce fluids.

FOC

Formation Density. A compensated log from which the density, and therefore porosity of a formation can be calculated once types of rock and fluid present are known.

IFMI

Formation micro imaging log, which uses electrical principles to develop a 360 degree picture of the formation at any depth in the open hole section of the well. It can be used to detect formation characteristics such as fractures. Gamma Ray. Used to identify the type of formation (lithology) from the natural radioactivity it produces.

HOT

High Resolution Dipmeter is an improved tool to measure formation dips in situ, and the orientation and deviation of the bore hole.

Page 118

Oil & Gas Handbook

......
~.

*.

lOOK

AT

THINGS

DIHERENHY

BANK Of SCOTLAND
CORPORATE

Petroleum resources are the estimated quantities of hydrocarbon naturally occurring on or within the earth's crust. The term resources is intended to encompass all quantities of petroleum, discovered and undiscovered, recoverable and unrecoverable, plus those quantities already produced. Further it includes all types of petroleum whether currently considered conventional or unconventional. Figure 1 graphical representation of the resources classification system. Figure 1: Resources Classification Framework and Sub-classes based on Project Maturity
IS

a

Source: Society of Petroleum Engineers

The "range of uncertainty" reflects a range of estimated quantities potentially

J

recoverable from an accumulation by a project, while the "chance of commerciality" is the chance that the project will-be developed and reach commercial producing status.

SPE Resources and
2. SPEJ'WPCI AAPIGiISPEIE Petroleum Management System ReSGurGes

A petroleum resources management system provides a consistent approach to estimating petroleum quantities. International efforts to standardise the definitions of

!.OOK

AT

THlNGS

OIFFER;::NTlY

Page 120

Oil & Gas Handbook

.>!(o BANK OF SCOTlAND
CORPORATE

petroleum resources have been on going for many years. The recent (2007) revision (SPE/WPC/AAPG/SPEE Petroleum Resources Management System) builds on and

For reserves to be considered commercial they must be both:

• Economic - The project, at some level, must yield a positive net present value using
the evaluator's assumed conditions and discount rate.

replaces previous guidance and is designed to provide a common reference for the international petroleum industry. The major principles in the revised SPE/WPC/AAPG/SPEE Petroleum Resources

• Committed - The project development must be initiated within a reasonable
timeframe (- 5 years). Proved Reserves are those quantities of petroleum, which by analysis or

Management System (SPE-PRMS) are that the system is project based, classification is based on project chance of oomrnerciality, categorization is based on the certainty of quantities recovered by applying a defined project to a reservoir and the base case uses the evaluator's forecast of future economic conditions. Projects can be stand alone or aggregated, and one project may target one or several accumulations. Figure 2 demonstrates the elements that need to be considered when estimating resources. Figure 2: Resources Evaluation Data Sources

geoscience and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs. This is taken as at least 90% chance of being equal to or exceeded if probabilistic methods are used. Reasonable certainty is left to the estimator to judge. Proved reserves must be commercially recoverable under defined economic conditions, operating methods and government regulations. For Proved Reserves the recovery efficiency applied should be defined based on a range of possibilities supported by analogues and sound engineering judgement considering the characteristics of the Proved area and the applied development

program. Under SPE-PRMS there are no longer specific requirements for formation tests in relation to Proved reserves. Whether or not the reservoi r is prod uctive is dealt with in project based recovery efficiency uncertainty ranges used to support the commercial commitment decision. Source: Society of Petroleum Engineers Improved Oil Recovery (lOR) includes all methods for supplementing the natural energy or altering the natural forces in the reservoir to increase ultimate recovery. It includes waterflooding, secondary or tertiary recovery processes. There is no separate distinction of lOR for Proved Reserves. The estimator will assume a Reserves are those quantities of petroleum anticipated to be commercially conservative recovery efficiency and provide supporting analogue information. Improved recovery projects must meet the same Reserves commerciality criteria as primary recovery projects. The judgement on commerciality is based on pilot testing within the subject reservoir or by comparison with analogous rock and fluid properties and where a similar established improved recovery project has been successfully applied. Incremental recoveries in commercial lOR projects are categorised into Proved, Probable and Possible Reserves based on certainty derived from engineering analysis and analogous applications in similar reservoirs.

recoverable by application of development projects to know accumulations from a given date forward under defined conditions. Reserves must further satisfy four criteria; they must be discovered, recoverable, commercial, and remaining (as of the evaluation date) based on the development project(s) applied. Reserves are further categorised in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterised by

development and production status as shown in Figure 1.

LOOK

AT

THHIIGS

O!Ff"ERENTlY

Page 122

Oil & Gas Handbook

*·SANKOf

SCOTLAND
CORPORATE

Unproved Reserves

are based on geoscience and/or engineering data similar to

Developed

Non Producing (shut-in) Reserves are expected to be recovered from

that used in estimates of Proved Reserves, but technical or other uncertainties preclude such reserves being classified as Proved. Unproved Reserves may be classified as Probable or Possible Reserves. Probable Reserves are those quantities which by analysis of geoscience and engineering data indicate are less likely to be recovered than Proved Reserves but more certain than Possible Reserves. It is equally likely that the quantities recovered will be greater or less than the sum of the estimated Proved plus Probable Reserves (2P), or there should be at least a 50% chance that the quantities recovered will exceed the 2P estimate if probabilistic methods are used. Probable Reserves are less certain than Proved Reserves. Probable estimates also

completion intervals which are open at the time of the estimate but which have not yet started producing, Dr wells which were shut-in for market conditions or pipeline connections, or wells not capable of production for mechanical reasons. Developed non producing also includes behind pipe Reserves which are expected to be recovered from zones in existing wells which require additional completion work prior to start of production. In all cases production can be re-instated or restored with relatively minor capex compared to the cost of drilling a new well. Undeveloped Reserves are quantities expected to be recovered through future

investments. This may include drilling new wells on un-drilled acreage, deepening existing wells to a different (but known) reservoir, drilling in-fill wells to increase recovery or recomplete an existing well or installation of production / transportation facilities (where relatively large expenditure is involved).

include incremental recoveries associated with project recovery efficiencies beyond thai assumed for Proved. Possible Reserves are those additional Reserves which by analysis of geoscience

and engineering data indicate are less likely to be recovered than Probable Reserves. The total quantities ultimately recovered from the project have a low probability to exceed the sum of Proved plus Probable plus Possible (3P) Reserves which is

equivalent to the high estimate scenario. When probabilistic methods are used there should be at least a 100(0 chance that the quantities recovered will equal or exceed the 3P estimate. Possible estimates also include incremental quantities associated with project recovery efficiencies beyond that assumed for Probable. Different economic tests for Proved reserves no longer apply, as such 1 P, 2P, 3P reflects technical uncertainty of recovery for the project and not prices. Developed Reserves are Reserves expected to be recovered from existing wells

and facilities. Developed Reserves may be further reclassified as producing and nonproducing. Developed Producing are Reserves expected to be recovered from completion

intervals that are open and producing at the time of the estimate. Improved recovery reserves are considered producing only after the improved recovery project is in operation.

LOOK

AT

THINGS

DIHEIH.NH..Y

Page 124

Oil & Gas Handbook

*·8ANKOf

SCOTLAND
CORPORATE

Sign up to vote on this title
UsefulNot useful