Industry Glossary

Key terms and definitions used in oil and gas exploration.

A B D E F I L N O P R S T W

A

Appraisal Well
A well drilled after a discovery to determine the size and characteristics of a reservoir.

B

Bcf
Billion cubic feet — a unit of measurement for natural gas volumes.
Block
A defined offshore area within the EEZ licensed for petroleum exploration and production.

D

Discovery
The finding of a previously unknown accumulation of hydrocarbons.

E

EEZ (Exclusive Economic Zone)
Maritime zone extending 200 nautical miles from a country's coast where it has special rights over marine resources.
Exploration License
Government permit allowing a company to search for hydrocarbons in a specific area.

F

FID (Final Investment Decision)
The point at which a company commits to proceed with a major project investment.
FPSO
Floating Production Storage and Offloading vessel — used for offshore oil/gas processing.

I

IOC (International Oil Company)
Large multinational private oil companies like ExxonMobil, Shell, and Chevron.

L

LNG (Liquefied Natural Gas)
Natural gas cooled to -162°C to convert it to liquid form for transport.

N

NOC (National Oil Company)
State-owned oil company, such as Qatar Energy or KOGAS.

O

Offshore
Located in the sea, away from land. Most Cyprus exploration is in deep offshore waters.
Operator
The company responsible for day-to-day operations in an exploration or production license.

P

Partner
A company holding a stake in a license but not acting as the operator.
Production Sharing Contract (PSC)
Agreement where the government and contractor share production after cost recovery.

R

Reserves
Estimated quantities of hydrocarbons that can be commercially recovered.

S

Seismic Survey
Geophysical method using sound waves to map underground rock formations.
Spud
To begin drilling a well. "Spud date" is when drilling commenced.

T

Tcf
Trillion cubic feet — a unit of measurement for large natural gas reserves.

W

Water Depth
The depth of water at a drilling location. Cyprus blocks range from 1,000-2,800m.
Wildcat Well
An exploration well drilled in an area with no known reserves.
Working Interest
The percentage of ownership a company holds in an oil and gas operation.