Glossary and abbreviations

Abbreviations and acronyms

1P: Proven reserves

2C: Contingent resources

2P: Proven and probable reserves

3P: Proven, probable and possible reserves

ADENE: Energy Agency

AFC: Aviation Fuel Committee

AFI: accident frequency index

AIPQR: Petrochemicals and Refining Industries Association

Amorim Energia: Amorim Energia, B.V.

ANP: Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (Brazilian energy sector regulatory entity)

APA: Agência Portuguesa do Ambiente (Portuguese Environment Agency)

APCE: Associação Portuguesa de Comunicação de Empresa (Portuguese Association for Corporate Communication)

API: American Petroleum Institute

b.p.: basis points

bbl: oil barrel

BBLT: Benguela, Belize, Lobito and Tomboco

bcm: billion cubic metres

BCSD Portugal: Business Council for Sustainable Development in Portugal

BD: Board of Directors

Black Creek: Black Creek Investment Management Inc.

BlackRock: BlackRock, Inc.

bn: billion

BNY Mellon: The Bank of New York Mellon Corporation

BoD: Board of Directors

boe: barrel of oil equivalent

BP: British Petroleum

BRL: Brazilian Reais

BU: business units

CDP: Carbon Disclosure Project

CDP: Driving Sustainable Economies

CEC: Code of Ethics and Conduct

CEO: Chief executive officer

CESE: Contribuicão Extraordinária sobre o Sector Energético (Portuguese Energy sector extraordinary contribution)

CFF: cacho de fruto fresco (fresh fruit bunches)

CFO: Chief financial officer

CGD: Caixa Geral de Depósitos, SA

CGS: Corporate Governance Code

CGU: cash generating unit

CI Investments: CI Investments, Inc.

CIDLA: Combustíveis Industriais e Domésticos, Lda. (Distribution of butane and propane gas imported into Portugal)

CITE - Commission for Equality in Labour and Employment

CLC: Companhia Logística de Combustíveis de Portugal (Portuguese logistics company)

CLCM: Companhia Logística de Combustíveis da Madeira, SA (Madeira Island logistics company)

CLH: Compañia Logística de Hidrocarburos, SA (Spanish company group for the transportation and storage of oil products)

CMVM: Comissão do Mercado de Valores Mobiliários (Portuguese Securities Market Regulatory entity)

CNE: Central North East

CNG: compressed natural gas

CNIS - Confederação Nacional das Instituições de Solidariedade (Portuguese National Confederation of Welfare Institutions)

CNPC: China National Petroleum Corporation

CO2: Carbon dioxide

CO2e: carbon dioxide equivalent

CoCo: company-owned-company-operated

CoDo: company-owned-dealer-operated

CoEC: Code of Ethics and Conduct

CoFo: company-owned-franchise-operated

CompeC: Advanced Course in Commercial Skills

CONCAWE: Conservation of Clean Air and Water in Europe

COOEC: Offshore Oil Engineering Co. Ltd

COP21: Conference of the Parties

CORe: Centro Operacional de Relacionamento com empresas

COSCO: China Ocean Shipping Company

COSO: Committee of Sponsoring Organisations of the Treadway Commission

CPT: compliant piled tower

CRGE: Companhias Reunidas de Gás e Eletricidade (Portuguese Gas and Electricity United Companies)

CSC: Portuguese Commercial Companies Code

CTA: Cumulative Translation Adjustment

CUF: Companhia União Fabril

CVM: Comissão de Valores Mobiliários (Portuguese Securities Code)

D&P: Development and production

DCF: Discounted Cash Flow

DeMac: DeGolyer and MacNaughton

DERI: Direção de Estratégia e Relações com Investidores (Strategy and Investor Relations Division)

DGE: Directorate General for Education

DGEG: Directorate General for Energy and Geology

DJSI: Dow Jones Sustainability Index

DoC: Declaration of Commerciality

DoDo: dealer-owned-dealer-operated

DP: development plan

DST: drill stem test

E&P: Exploration & Production

Ebit: earnings before interest and taxes

Ebitda: earnings before interest, taxes, depreciation and amortisation

EC: Executive Committee

ECSI: European Costumer Satisfaction Index

EDP: Energias de Portugal, SA

EETS: European Emissions Trading Scheme

EIB: European Investment Bank

EII: energy intensity indicator

EITI: Extractive Industries Transparency Initiative

EL: Emissions licenses

EMPL: Europe-Maghreb Pipeline

EMTN: Euro Medium Term Notes

EMV: Expected Monetary Value

EngIQ: Refining, Petrochemical and Chemical Engineering Doctorate Programme

ENH: Empresa Nacional de Hidrocarbonetos (National hydrocarbons company of Mozambique)

Eni: Eni, S.p.A.

ENMC: Portuguese National Entity for the Fuel Market

EPC: Engineering, Procurement and Construction

EPCIC: Engineering, Procurement, Construction, Installation and Commissioning

EPIS: Empresários pela Inclusão Social (Association of Entrepreneurs for Social Inclusion)

EQS: Environment, Quality and Safety

EQSE: Environment, Quality, Safety and Energy

Equator: Offshore Equator Oil and Gas Lda.

ERM: Enterprise Risk Management

ERSE: Entidade Reguladora dos Serviços Energéticos (Portuguese energy market regulatory entity)

ERU: Emission Reduction Units

ESCO: Energy Service Companies

ETS: European Union Emissions Trading System

EUA: Emission Unit Allowances

EUR (or €): Euro

EWT: Extended well test

FASB: Financial Accounting Standards Board

FCC: fluid catalytic cracking

FEED: Front-End Engineering Design

FENACERCI: Federação Nacional de Cooperativas de Solidariedade Social (Portuguese National Federation of Welfare Cooperatives)

FFB: fresh fruit bunches

FID: Final Investment Decision

FLNG: Floating, liquefied natural gas unit

FNEE: Fondo Nacional de Eficiência Energética (Spain)

FormAG: Advanced Management Training Course

FPSO #1: FPSO Cidade Angra dos Reis

FPSO #2: FPSO Cidade de Paraty

FPSO #3: FPSO Cidade de Mangaratiba

FPSO #4: FPSO Cidade de Itaguaí

FPSO #5: FPSO Cidade de Maricá

FPSO #6: FPSO Cidade de Saquarema

FPSO: Floating, production, storage and offloading unit

G&P: Gas & Power

Galp: Galp Energia, SGPS, SA, Company, Group or Corporation

GDP: Gás de Portugal, SA

GDP: Gás de Portugal, SGPS, SA (Portuguese holding company for natural gas distribution)

GeoER: Advanced Study Programme in Geoengineering of Reservoirs

GES: Galp | Energia Solidária

GGND: Galp Gás Natural Distribution

GHG: greenhouse gases

GIIP: Gas initially in place

GPEOD: Galp Petroleum Engineering Open Days

GRI: Global Reporting Initiative

GRID: Management and Reporting of Performance Indicators

GSM: General Shareholders Meeting

GVA: Galp Added Value

GWh: gigawatt-hour

GWT: Global Water Tool for Oil & Gas

HC: Hydrocracking

HIV: Human Immunodeficiency Virus

HSE&Q: Health, Safety and the Environment and Quality

HSE: Health, Safety and the Environment

HVO: hydrotreated vegetable oil

IAS: International Accounting Standards

IASB: International Accounting Standards Board Commitment

IASC: International Accounting Standards Committee

IBAMA: Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renováveis (Brazilian Institute for the Environment and Natural Resources)

IBAT: Integrated Biodiversity Assessment Tool

Iberdrola: Iberdrola, SA

IBV: IBV Brasil Petróleo Limitada

ICE: Intercontinental Exchange

IEA: International Energy Agency

IFA: Índice de Frequência de Acidentes mortais e com baixa (Lost Time Injury Frequency)

IFRIC: International Financial Reporting Interpretation Committee

IFRS: International Financial Reporting Standards

IIRC: International Integrated Reporting Council

IMO: International Maritime Organisation

Integra: Integra Offshore

IOGP: International Association of Oil & Gas Producers

IPIECA: International Petroleum Industry Environmental Conservation Association

IPO: initial public offering

IRP: Imposto sobre o Rendimento do Petróleo (Oil tax payable in Angola)

ISIN: International securities identification number

ISO: International Organisation for Standardisation

ISQ: Instituto de Soldadura e Qualidade (Institute for Welding and Quality)

ISP: tax on oil products (Portugal)

IsPG: Instituto do Petróleo e Gás (Institute of Oil and Gas)

IST: Instituto Superior Técnico (Técnico Institute – University of Lisbon)

JOA: Joint Operation Agreements

k: Thousand/thousands

kboepd: thousand barrels of oil equivalent per day

kbpd: thousand barrels of oil per day

kcal: kilocalorie

km/km2/km3: kilometres / square kilometres / cubic kilometres

Kogas: Korea Gas Corporation

KPI: Key Performance Indicator

KRI: Key resources indicators

kton: thousand tonnes

KYC: Know Your Counterparty

KYT: Know Your Transaction

LBG: London Benchmarking Group

LCC: Lisbon City Council

LCO: light cycle oil

LNG: liquefied natural gas

LPG: liquefied petroleum gas

LRO: local risk officer

LTIFR: lost time injury frequency rate

m: metres

m: million

m³: cubic metres

MDG: Millennium Development Goals

MIBEL: Iberian Electricity Market

mm³: million cubic metres

mmbbl: million barrels

mmboe: million barrels of oil equivalent

mmboepd: million barrels of oil equivalent per day

mmscf: million standard cubit feet

MoU: Memorandum of Understanding

MScEP: Masters in Petroleum Engineering

MTM: mark-to-market

mton: million tonnes

mtpa: million tons per annum

MU: management units

MW: megawatt

NAMCOR: National Petroleum Corporation of Namibia

NE: North-east

NG: natural gas

NGNDN: Natural Gas National Distribution Network

NGNS: Natural Gas National System

NGNTN: Gas National Transportation Network

NOx: gases nitric oxide and nitrogen dioxide

NTR: National Transmission Network

NYSE: New York Stock Exchange

OECD: Organisation for Economic Cooperation and Development

OHSAS: Occupational Health and Safety Assessment Services

OJEU: Official Journal of the European Union

OMIE: Operador de Mercado Ibérico - Espanha (Iberian Market Operator - Spain)

OMIP: Operador de Mercado Ibérico - Portugal (Iberian Market Operator - Portugal)

OPEC: Organisation of Petroleum Exporting Countries OTC: over-the-counter

P.O.S.: Probability of Success

p.p.: percentage points

Parpública: Parpública – Participações Públicas, SGPS, SA

Partex: Partex Oil and Gas (Holdings) Corporation

Petrobras: Petróleo Brasileiro, SA

Petrogal: Petróleos de Portugal – Petrogal, SA

Petrosul: Sociedade Portuguesa de Refinação de Petróleos (Portuguese Society of Oil Refining)

PIA: Production Individualisation Agreement

PPEC: Plan to Promote Energy Efficiency in the Consumption of Electric Energy

PPSA: Pré-Sal Petróleo SA

PSA: Production Sharing Agreement

PSI-20: Portuguese stock market reference index

PSL: past service liability

PwC: PricewaterhouseCoopers

R&D: Research & Development

R&M: Refining & Marketing 

R&T: Research & Technology

RAB: Regulated Asset Base

RC: replacement cost

RCA: replacement cost adjusted

RCM: reliability centered maintenance RDA: reservoir data acquisition

REN: Redes Energéticas Nacionais, SA (Portuguese transmission system operator)

RLR: retailers of last resort

RLRW: Retailer of Last Resort Wholesaler

ROC: Statutory Auditor

ROI: return on investment

RRR: reserves replacement ratio

SACOR: Sociedade Anónima de Combustíveis e Óleos Refinados (Refined Fuels and Oils Plc)

SARL: Sociedade Portuguesa de Petroquímica (Portuguese Petrochemicals Society)

Schroders: Schroders Plc

SDG: sustainable development goal

SGPS: Sociedade Gestora de Participações Sociais (Holding company)

SIC: Standing Interpretation Committee

SME: medium-sized enterprises

SONAP: Sociedade Nacional de Petróleos (Portuguese Oil Society)

SPE: Society of Petroleum Engineers

SPP: Sociedade Portuguesa de Petroquímica (Portuguese Petrochemical Society)

SROC: Firm of statutory auditors

SROI: Social Return on Investment Standard Life: Standard Life Investments (Holdings) Limited

STC: Scientific and Technological Community

SXEP: STOXX Europe 600 Oil & Gas Index

tC02e: tonnes of carbon dioxide equivalent

tcf: trillion cubic feet

tdw: deadweight tonnage

Transgás: Sociedade Portuguesa de Fornecimento de Gás Natural, SA (Portuguese company for importation, transportation, storage and supply of natural gas)

TSR: total shareholder return

TSU: social security contributions

UA: University of Aveiro

UBI: Beira Interior University

UL: University of Lisbon

UMiP: União das Misericórdias Portuguesas (Portuguese Welfare Union)

UMuP: União das Mutualidades Portuguesas (Portuguese Mutualities Union)

UN: United Nations

UNEP: United Nations Environment Programme

UNFCC: United Nations Framework Convention on Climate Change

UNGC: United Nations Global Compact

UOP: Unit of Production method

US: United States

USA: United States of America

USD (or $): United States Dollar

VAT: value-added tax

Ventinveste: Ventinveste, SA

VGO: vacuum gas oil

VR: vacuum residue

WACC: weighted average cost of capital

W.I.P.: Winland International Petroleum, SARL

WAG: water alternating gas

WB: World Bank

WI: working interest

WPC: World Petroleum Council

WWTP: wastewater treatment plant


API density

Density expressed in API degrees, defined by the American Petroleum Institute by means of the following formula: API° = (141.5/g) – 131.5, where g is the density of the oil to 60 °F (15.6 °C). This is the formula that is internationally used to establish the density of crude oil. The greater the API density, the lighter the crude oil.

Atmospheric distillation

Distillation of crude oil effected under atmospheric pressure, from which oil product fractions are produced (light oil, heavy oil, diesel fuels, and heavy products, for example). After suitable treatment, these fractions are the components of the finished products.

Benchmark refining margin

The benchmark refining margin is calculated with the following weighting: 45% hydrocracking margin + 42.5% Rotterdam cracking margin + 7% Rotterdam base oils + 5.5% Aromatics.

Rotterdam hydrocracking margin

The Rotterdam hydrocracking margin has the following profile: -100% Brent dated, +2.2% LGP FOB Seagoing (50% Butane + 50% Propane), +19.1% PM UL NWE FOB Bg., +8.7% Naphtha NWE FOB Bg., +8.5% Jet NWE CIF, +45.1% ULSD 10 ppm NWE CIF Cg. +8.9% LSFO 1% FOB Cg; Terminal rate: $1/ton; Ocean loss: 0.15% over Brent dated; Freight 2015: WS Aframax (80 kts) Route Sullom Voe / Rotterdam – Flat $7.60/ton. Yields in % of weight.

Rotterdam cracking margin

The Rotterdam cracking margin has the following profile: -100% Brent dated, +2.3% LGP FOB Seagoing (50% Butane + 50% Propane), +25.4% PM UL NWE FOB Bg., +7.5% Naphtha NWE FOB Bg., +8.5% Jet NWE CIF, +33.3% ULSD 10 ppm NWE CIF Cg. and +15.3% LSFO 1% FOB Cg.; C&L: 7.4%; Terminal rate: $1/ton; Ocean loss: 0.15% over Brent dated; Freight 2015: WS Aframax (80 kts) Route Sullom Voe / Rotterdam – Flat $7.60/ton. Yields in % of weight.

Rotterdam base oils margin

Base oils refining margin: -100% Arabian Light, +3.5% LGP FOB Seagoing (50% Butane + 50% Propane), +13.0% Naphtha NWE FOB Bg., +4.4% Jet NWE CIF, +34.0% ULSD 10 ppm NWE CIF, +4.5% VGO 1.6% NWE FOB Cg.,+ 14%; Base Oils FOB, +26% HSFO 3.5% NWE Bg.; Consumptions: -6.8% LSFO 1% CIF NWE Cg.; Losses: 7.4%; Terminal rate: $1/ton; Ocean loss: 0.15% over Arabian Light; Freight 2015: WS Aframax (80 kts) Route Sullom Voe / Rotterdam – Flat $6.95/ton. Yields in % of weight.

Rotterdam aromatics margin

Rotterdam aromatics margin: -60% PM UL NWE FOB Bg., -40% Naphtha NWE FOB Bg., +37% Naphtha NWE FOB Bg., +16.6% PM UL NWE FOB Bg., +6.5% Benzene Rotterdam FOB Bg., +18.5% Toluene Rotterdam FOB Bg., +16.6% Paraxylene Rotterdam FOB Bg., +4.9% Ortoxylene Rotterdam FOB Bg. Consumption: -18% LSFO 1% CIF NEW. Yields in % of weight.


Carbon dioxide, colourless gas that is heavier than air, this being one of its natural components. Produced by certain natural processes, such as the carbon cycle, and by the complete burning contained in fossil fuels.


Power generation technology that allows the combined production of heat and electricity. The advantage of cogeneration is the capacity it has to take double advantage of the heat produced by burning the fuel for the generation of thermal energy for the generation of electricity. This process allows the same installation to comply with the heat (hot water or steam) and electricity needs of both industrial clients and urban settlements. This system improves the energy efficiency of the generation process and reduces use of the fuel.


The complexity of a refinery lies in its capacity to process crude oil and other raw materials and is measured by means of the complexity index, calculated separately by different organisations within the sector, such as energy sector consultants Solomon Associates and Nelson. A refinery’s complexity index is calculated by attributing a complexity factor to each one of the refinery’s units, which is based above all on the level of technology used in the construction of the unit, taking as a reference a crude oil primary distillation installation to which is attributed a complexity factor of 1.0. The complexity index of each unit is calculated by the multiplication of the complexity factor with the unit’s capacity. The complexity of a refinery is equivalent to the weighted average of the complexity index of each one of its units, including the distillation units. A refinery with a complexity index of 10.0 is considered to be 10 times more complex than a refinery equipped with just crude oil atmospheric distillation, for the same quality of processed product.


Hydrocarbons that, when stored in the respective deposits, are found to be in a gaseous state, but which on the surface become liquids under normal pressure and temperature conditions. This essentially concerns pentane and other heavier products.

Contingent resources

These are quantities of oil that are estimated on a given date to be potentially recoverable from known accumulations but are not currently considered to be commercially recoverable. This may happen for a variety of reasons. For example, maturity issues (the discovery needs further appraisal in order to firm up the elements of the development plan); technological issues (new technology needs to be developed and tested for commercial production); or market-driven issues (sales contracts are not yet in place or the infrastructure needs to be developed in order to get the product to market). 2C contingent resources are those that are calculated based on the best estimate, while 3C resources correspond to the highest estimate, thus reflecting a larger level of uncertainty. Volumes that fall into this category cannot be referred to as reserves.


Set of various treatments (catalytic or thermal) where the principal reaction is effected on the carbon connections, with this having the possibility of being more or less deep due to the conditions imposed. This process is typically associated with the conversion of fuel oils in lesser fractions (diesel fuels, gasoline and gases) and fuel oils that are more sophisticated from the perspective of their use. In a modern refinery, these processes have assumed a growing importance.


Transformation through a breaking down of the hydrocarbon molecules in long chains, with the objective of obtaining hydrocarbon molecules in shorter chains, thus increasing the proportion of lighter and more volatile products. Distinguishing between thermal cracking and catalytic cracking. Thermal cracking is only caused by the actions of heat and pressure. Catalytic cracking uses catalysers that, at the same temperature, allow a deeper and more selective transformation of fractions that could be heavier.

Dated Brent

Price of shipments of Brent oil as announced by the price fixing agencies. This is the reference price for the vast majority of crude oils sold in Europe, Africa and the Middle East, and is one of the most important references for the prices on the spot market. Dated Brent oil is the light crude oil from the North Sea that, since July 2006, has included the Fortis and Oseberg branches. The crude mix has an average API density of approximately 38.9°.


A mix of liquid hydrocarbons destined for feeding compression ignition engines (Diesel cycle). The behaviour of diesel fuel depends on the temperatures at which it is used.


Release of gases into the atmosphere. Within the context of global climactic alterations, the gases released include gases capable of altering the climate – the so-called GGEs. A typical example is the release of CO₂ during the burning of fuels.

Direct emissions (A1)

These can be directly controlled by the Company and concern the emissions due to the consumption of fuel in its own installations: ovens, heat or steam generators, or the Organisation’s cars.

Indirect emissions (A2)

These are a result of the Company’s activities but which use another organisation’s resources: use of grid, heat or steam electricity, produced at installations that are not the Company’s.

Indirect emissions (A3)

Emissions due to the consumption of fuel in installations that are not the Company’s: leased cars, planes, waste incineration, logistics activities or services.

Fuel oil

A mix of hydrocarbons destined for the production of heat in thermal installations. There are various types of fuel oil, due to its viscosity, which conditions their use.


Fuel for automobiles equipped with motors that use the Otto cycle. This should comply with precise specifications concerning its physical and chemical qualities, of which the most important is resistance to self-inflammation.


Process of cracking with the use of hydrogen and under the action of catalysts that allows the conversion of less valuable, high-boiling-point oil fractions into lighter, more valuable fractions. The hydrogen allows working at lower temperatures and greater selectivity and, therefore, produces better results.

The products from the reaction are saturated compounds, which provide them with important stability qualities


The Intercontinental Exchange, Inc., or ICE, is a North-American company that operates virtual markets, in which futures contracts are transacted as well as OTC contracts on energy and commodities, and other financial derivatives products.

Jet fuel

Fuel for jet motors used in aviation.

Liquefied natural gas (LNG)

Natural gas that is changed into its liquid state to enable transportation. Liquefaction is performed by a reduction in the temperature of the gas, to atmospheric pressure, to amounts of less than -160°C. The volume of the LNG is approximately 1/600 of the volume of natural gas.

Liquefied Petroleum Gas (LPG)

Gaseous hydrocarbons, under normal conditions of temperature and pressure, and liquids, by raising the pressure or reduction of temperature, which can legally be transported and stored. The most common are propane and butane.


Products obtained by mixing one or more base oils and additives. This process obeys specific formulas due to the use of the lubricant. The percentage of additives in the lubricating oils reaches 40%. The lubricating oils have three main uses: automobiles, industry and marine.


Oil product fraction that is located between gases and oil. This is also a raw material in the petrochemical industry, from which cracking provides a large variety of products. This can also form part of the composition of engine gasoline (light naphtha) or, in the case of heavy naphtha, serve as a raw material for the production of reformate.

Natural Gas

Mix of light hydrocarbons found in the subsoil, in which methane is present at a percentage of more than 70% volume. The composition of natural gas may vary depending upon the field in which it is produced and the processes of production, conditioning, processing and transport.

Net entitlement production

The production percentage of the rights for the exploration and production of hydrocarbons in a concession following production-sharing agreements.

Prospective resources

Quantities of oil that have, on a certain date, been estimated as potentially recoverable from undiscovered accumulations through future development projects. The estimation of a prospect’s resources is subject to both commercial and technological uncertainties. Risked mean estimate prospective resources have a higher implied recovery probability than unrisked mean estimate resources. The quantities classified as prospective resources cannot be classified as contingent resources or reserves.

Proven reserves (1P)

Under the definitions approved by the SPE and the WPC, proven reserves are those quantities of oil which, by analysis of geological and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under current economic conditions, operating methods and government regulations. If deterministic methods are used, the expression “reasonable certainty” is intended to express a high degree of confidence that the quantities will be recovered. If probabilistic methods are used, there should be at least a 90% probability that the quantities actually recovered will equal or exceed the estimate.

The definition of current economic conditions should include relevant historical oil prices and associated costs. In general, reserves are considered proven if the commercial productivity of the reservoir is supported by actual production or formation tests. In this context, the term “proven” refers to the actual quantities of oil reserves and not just the productivity of the well or reservoir. The area of the reservoir considered as proven includes (1) the area delineated by drilling and defined by fluid contacts, if any, and (2) the undrilled portions of the reservoir that can reasonably be judged as commercially productive on the basis of available geological and engineering data. Reserves may be classified as proven if facilities to process and transport those reserves to market are operational at the time of the estimate or there is a reasonable expectation that such facilities will be installed.

Proven and probable reserves (2P)

2P reserves correspond to the sum of proven (1P) and probable reserves. Under the definitions approved by the SPE and the WPC, probable reserves are a category of unproven reserves. Unproven reserves are based on geological or engineering data similar to those used in estimates of proven reserves but in relation to which technical, contractual, economic or regulatory uncertainties preclude such reserves from being classified as proven. Probable reserves are those quantities of oil that, by analysis of geological and engineering data, have a lower probability of being recovered than the proven reserves, but higher than the possible reserves. If probabilistic methods are used, there should be at least a 50% probability that the quantities actually recovered will equal or exceed the 2P estimate.

Proven, probable and possible reserves (3P)

3P reserves correspond to the sum of proven, probable and possible reserves. Under the definition approved by the SPE and the WPC, possible reserves are a category of unproven reserves. Unproven reserves are based on geological or engineering data similar to those used in estimates of proven reserves but in relation to which technical, contractual, economic or regulatory uncertainties preclude such reserves from being classified as proven. Possible reserves have a lower probability of being recovered than probable reserves. If probabilistic methods are used, there should be at least a 10% probability that the quantities actually recovered will equal or exceed the 3P estimate.

Refineries’ utilisation rate

Ratio of the total quantity of crude processed oil in the crude oil distillation units in relation to these units’ maximum processing capacities.


The installation where the industrial processes designed to transfer the crude oil into products adapted to the needs of the consumers (fuels, lubricants, bitumen, etc.) or into raw materials for other so-called ”second generation” industries (for example, the petrochemical industry).

Renewable energy

Energy that is available from permanent and natural energy conversion processes and is economically exploitable under present conditions or in the foreseeable future.

Replacement Cost (RC)

According to this method, the cost of goods sold is valued at the cost of replacement, i.e. at the average cost of raw materials on the month when sales materialise irrespective of inventories at the start or end of the period. The Replacement Cost Method is not accepted by the Portuguese IFRS and is consequently not adopted for valuing inventories. This method does not reflect the cost of replacing other assets.

Replacement Cost Adjusted (RCA)

In addition to using the replacement cost method, RCA items exclude non-recurrent events such as capital gains or losses on the disposal of assets, impairment or reinstatement of fixed assets and environmental or restructuring charges which may affect the analysis of the Company’s profit and do not reflect its regular operational performance.


Seismic acquisition involves the generation (source) and recording (receiver) of seismic data. A source, such as a vibrator unit, dynamite shot, or an air gun, generates acoustic or elastic waves that travel into the Earth, pass through strata with different seismic responses and filtering effects, and return to the surface to be recorded as seismic data. The receiver may include different configurations, including laying geophones or seismometers on the surface of the Earth or seafloor, pulling hydrophones behind a marine seismic vessel, suspending hydrophones vertically in the sea or placing geophones in a wellbore (as in a vertical seismic profile) to record the seismic signal.

Spot market

The name, relating to products such as oil, used to describe the international commerce of products shipped in single cargos, such as crude oil, the prices of which closely follow the respective demand and availability.

Storage facility

Installation used by principal and collector pipeline companies, producers of crude oil, and terminal operators (except refineries) for storage of crude oil and oil products.

Wind farm

Group of wind turbines for the production of electrical energy interlinked by a common network by means of a system of transformers, distribution lines and, usually, a substation. The functions of exploration, control and maintenance are normally centralised by means of a monitored IT system, which is complemented by visual inspections.

Wind power

Kinetic energy – that is, energy that is generated by movement that is obtained by displacement of the air, or in other words, wind. This can be converted into mechanical energy for the enactment of pumps, mills and electrical energy generators.

Working interest production

The production percentage of the rights for exploration and production of hydrocarbons in a concession before the effect of production-sharing agreements.