Glossary

Since the performance in global projects is about communication to co-ordinate global and local initiatives, it appeared imperative to create this glossary.

You will find words related to technology as well as commercial and contractual terms.

For each word you will find a definition as short and simple as possible and comments to make the best use of it.

With new technologies and new practices, new words or new understandings to come up at any time, feel free to comment. We expect to handle this section as a permanent  interactive learning session.

Many thanks in advance for your contribution

PCIC Europe : Definition: PCIC Europe is the premier European forum for the exchange of experience in the practical application of electricity and instrumentation in the petroleum, chemical and pharmaceutical industries, including all upstream and downstream activities. Comments: The Authors are well recognized experts coming from End Users, Engineering companies and manufacturers, Regulators and insurance institutions, European institutions other international organizations. PCIC Europe is registered in Switzerland as non profitable association and is managed by a Committee representing companies recognized for their expertise and their efforts to share and promote good practices. More details about PCIC Europe on : http://www.pcic-europe.com
PET : Definition:PET is the acronym of Poly-Ethylene Terephthalate, oftently written Polyethylene Terephthalate. It is a thermoplastic polymer resin from the Polyester family. Comments: The term polyethylene terephthalate is a source of confusion because this substance, PET, does not contain polyethylene PET is a high performance, recyclable, polymer, ranking third in terms of volume of global consumption and widely used in textile and packaging applications. The packaging industry values the excellent physical and optical properties of the polymer which is used extensively for water and carbonated soft drink bottles. The PET resin has superior properties; they are attractive, pure and safe. The low permeability of PET to oxygen, carbon dioxide and water means that it protects and maintains the integrity of products giving a good shelf life. It also has good chemical resistance. PET bottles have the advantage of being lightweight, one-tenth the weight of an equivalent glass pack. Thus, PET reduce shipping costs, and because of the material is thinner, shelf utilization is improved by 25 per cent on volume as compared to glass. High strength, low weight PET bottles can be stacked as high as glass.
Petoro : Definition Petoro AS is a Norway State wholly-owned company in charge of the Norwegian Continental Shelf (NCS) oil and gas assets management Comments Petoro AS (Petoro) is the licensee of the Norwegian State\'s Direct Financial Interests (SDFI) representing the assets of the NCS, while Norway as a State is the owner of these assets. Petoro was established on May 9th 2001 as State owned company as a consequence of the partial privatization and listing of Statoil. The purpose is to preserve and manage the Norwegian SDFI in the NCS oil and gas operations while Statoil can pursue its own global development and proceed to alliances and joint ventures with foreign partners. Comparing different solutions the Norwegian Government has decided to create a State owned limited company as the legal entity to handle this task. Petoro is defined to have minimum organization but requires high standards expertise and a wide range of competences in order to manage the NCS reserves for the greatest interest of Norway with a long term view and regardless the constraints of the short term operations. In practice, Petoro is in charge of: - Management of NCS assets through the SDFI operated in joint venture or not - Monitoring Statoil\'s marketing and sales of the hydrocarbons products extracted from the NCS assets, in line with the Ministry of Petroleum and Energy (MPE) - Financial management of the SDFI and book keeping In respect with the Chapter 11 of the Petroleum Act, Petoro is managing the SDFI on behalf of the Norwegian Government through commercial terms and the licenses representing its interests. Petoro operates at the expense and risks of the Sate, as the licensee of the production assets in the NCS, pipelines or associated onshore facilities. In the joint ventures with Statoil and any other company involved in the exploration, development and production of oil and gas fields located in the NCS, Petoro will act as the representative of the State. Since Petoro is not supposed to have any operator role, it will interact as the best partners in the joint ventures considering anyway that defending the State\'s interest is its ultimate goal. Purchasing, selling or swapping assets or interests must be submitted to the MPE for approval before proceeding. In its assets management role, Petoro is not in charge of selling and marketing the oil and gas produced from these assets. This marketing and sales responsibilities are assigned to Statoil. Anyway, Petoro will monitor that Statoil is proceeding in these marketing and sales missions in respect with the State instructions given to Statoil. In this monitoring role as in the asset management task, Petoro reports to the MPE.
Petrochemical : Definition: Petrochemical comes from the Ancient Greek language where Petro means rock in referring to these rocks, Petro, producing oleum meaning oil to become petro-oleum, the oil of rocks. Therefore the word Petrochemical has been originally given to the chemistry issued from the oil. Comments: From process perspective, the Petrochemical industry begins where the Refining or Gas treatment stops. Both Petrochemical and Refining define the Downstream activities. The Petrochemical products are part of the organic chemistry where many of the chemical compounds may be obtained as well from coal or gas. Therefore the use of Petrochemical has been extended to the chemical products coming from the gas and more generally from the carbon chain. The Petrochemical products are divided in three groups: Olefins Aromatics Synthesis gas
Pipelay Vessel : Definition: Pipelay Vessel or Pipe Laying Vessel refers to the vessel used by the offshore oil and gas industry to install subsea all the connecting infrastructures such as pipelines, umbilicals or electrical cables Comments These subsea infrastructures may be installed to connect floating units on the surface to the seabed, or from shore to floating unit or from floating unit to shore or even from shore to shore. All these connections may be done with pipelines or electrical power lines or umbililcals. These infrastructures are made of steel and other materials having a limited flexibility which may be severely damaged if shocked or folded beyond their elasticity limit. Their length and diameters increase in respect with the distance and the quantity of fluid or gas or energy and information to be carried out. In addition the costs of these infrastructure is extremely high and may exceed $1 million per kilometer. Therefore handling offshore these infrastructures requires dedicated vessels, the pipelay vessels or pipe laying vessels. There are two types of pipelay vessels, the J-lay vessel and the S-lay vessel. The J or the S refer to the shape of the pipe from the pipelay vessel to the seabed during the laying operation. In the J-lay vessel the pipe or the cable is downloaded vertically or with limited angle from the vertical from the vessel to the seabed The pipe makes only one curve when it is laid down on the seabed. In the S-lay vessel, the pipe is downloaded horizontally and therefore bending behind the vessel in shaping the form of S when it reaches the seabed. The S-lay vessel shall be used in shallow water in order to limit the bending forces on the pipe or the cables or umbilicals. The J-lay vessel will be preferred after a certain water depth as the pipe or cable will have only one bending phase. In the same project, the both type of vessels may be used, the S-lay vessel when laying the pipe near the shore and the J-lay vessel when getting closer to the floating unit.
PMC : Definition: PMC is the acronym of Project Management Consultancy. It is the synonymous function of PMS, for Project Management Services. PMC or PMS refers to the function provided by the engineering companies contracted as consultant. This consultant supports the Oil & Gas and Petrochemical companies in supervising the good contract execution of the contracts awarded to the contractors for the engineering, procurement and construction of a project. Comments: PMC may also be called EPCS for Engineering, Procurement and Construction Services or EPCM for Engineering, Procurement and Construction Management. As expressed in the above definition, the PMC, or PMS or EPCM refers to very different role from the EPC where the engineering company having the EPCM contract, supports the End Users in supervising the good project execution by the EPC companies. A PMC contract is solely a service contract, by contrast with the EPC contract. It may be seen as an interface between the End User and the EPC companies, but the role of the PMC takes a major importance in case of multiple EPC involved in the same complex project and calling for a close co-ordination. In some case the engineering company nominated as PMC may also act as EPC, but those roles will run according to different contracts.
PMS : Definition: PMS is the acronym of Project Management Services. It is the synonymous function of PMC, for Project Management Consultancy. PMS or PMC refers to the function provided by the engineering companies contracted as consultant. This consultant supports the Oil & Gas and Petrochemical companies in supervising the good contract execution of the contracts awarded to the contractors for the engineering, procurement and construction of a project. Comments: PMS may also be called EPCS for Engineering, Procurement and Construction Services or EPCM for Engineering, Procurement and Construction Management. As expressed in the above definition, the PMS, or PMC or EPCM refers to very different role from the EPC where the engineering company having the EPCM contract, supports the End Users in supervising the good project execution by the EPC companies. A PMS contract is solely a service contract, by contrast with the EPC contract. It may be seen as an interface between the End User and the EPC companies, but the role of the PMS takes a major importance in case of multiple EPC involved in the same complex project and calling for a close co-ordination. In some case the engineering company nominated as PMS may also act as EPC, but those roles will run according to different contracts.
Polyacetal : Definition Polyacetal is the common name for PolyOxyMethylene (POM). Polyacetal may also be called Polyformaldehyde as produced from formaldehyde. The Polyacetal is a polyether existing under two forms Homopolymer and Copolymer Comments Polyacetal was invented by Dupont de Nemours in 1953 Polyacetal is a high crystalline thermoplastic This high crystalline structure of the polyacetal provides higher performances than most of other thermoplastics. Polyacetal has a good resistance to wear, abrasion and fatigue with low friction coefficient. Polyacetal should not be exposed to acids. POM offers a high level of stability, hardness and rigidity. Polyacetal is also stable: - Under machining operations and shocks absorption - Low temperatures with high dimensional stability - In electrical applications Polyacetal is physiologically safe with a low level of humidity absorption but not convenient for food applications. For these reasons, Polyacetal is considered as a high performance plastic used for - Industrial applications, such as bearings and gears - Automotive parts, such as fuel, lube oil or grease receivers - Surgery for artificial hips and femoral junctions - Mechanical precision parts - Electrical industry - Sport such as ski biddings
Polyester Definition : Definition Polyester is a generic name referring to polymers made of repeated units of an ester molecule under the COO form. Polyester is produced by reaction of carbonated acids (Terephthalic acids) with alcohols (dihydric alcohols) and elimination of water. Comments These polymeric groups of repeated ester units can form long chains of molecules very stable and strong offering an excellent resistance in many applications. Polyester is one of the most important building block of the petrochemical industry as used in many applications as fibers, adhesives or plastics. Polyester are produced from hydrocarbon sources such as coal, gas, oil. The first transformation is the cracking of these feedstocks to extract the aromatics (Benzene or Xylenes). Then from Benzene and para-xylene, the carbonated acids are prepared for the interaction with alcohols to produce esters. These esters are then multiplied in long chains called polyester. Polyester is highly appreciated as textile fibers for its weather resistance, light weight and easy maintenance. As outdoors wears, polyester fibers provide with insulation and thermosetting effects. Because of its low costs and multiple characteristics, polyester fibers are mostly known under famous brands such as Lycra, Dacron, Terylene. Invented by du Pont de Nemours in 1926, the most well-known polyester fibers is the nylon, used for wears and under-wears and appreciated as non allergenic. Compared with other textile fibers, polyester does not absorb moisture giving to clothes a natural resistance to stains. In the industry, Polyester is used in many different forms and combined with other materials. As fibers or resins, the polymeric structure of polyester offers good shocks absorption and corrosion resistance fitting perfectly for marine hull applications and molded parts for the automotive industry. The polyester resins and fibers can also be mixed with other hydrocarbon compounds for quick drying resilient fibers and plastics. Because of its mechanical resistance, light weight and flexibility, the nylon fibers are integrated in the structure of the tires for chocks and intrusion resistance.
Polyethylene (PE) : Definition: Polyethylene (PE) is a thermoplastic polymer consisting of long hydrocarbon chains. A molecule of polyethylene is nothing more than a long chain of carbon atoms, with two hydrogen atoms attached to each carbon atom. Polyethylene is produced from the polymerization of ethylene as monomer. Polyethylene may have different grade of density with different melting point temperatures from 120°C to 137°C. They will be called Low Density Polyethylene (LDPE), Medium Density Polyethylene (MDPE) or High Density Polyethylene (HDPE) Comment: There are three common polymerization processes used to produce polyethylene: - Free radical chain polymerization - Ziegler-Natta polymerization - Metallocene catalysis polymerization Polyethylene is probably the most common polymer used in daily life. This is the polymer that makes grocery bags, shampoo bottles, children\'s toys, and even bullet proof vests. For such a versatile material, it has a very simple structure, the simplest of all commercial polymers. Sometimes some of the carbon atoms, instead of having hydrogens attached to them, will have long chains of polyethylene attached to them. This is called branched Polyethylene, or low-density polyethylene, or LDPE. When there is no branching, it is called linear polyethylene, or HDPE. Linear polyethylene is much stronger than branched polyethylene, but branched polyethylene is cheaper and easier to make. Most LDPE, MDPE and HDPE grades have excellent chemical resistance, meaning that it is not attacked by strong acids or strong bases. It is also resistant to gentle oxidants and reducing agents. Polyethylene burns slowly with a blue flame having a yellow tip and gives off an odour of paraffin. Polyethylene, under its different forms, Low Density Polyethylene (LDPE), Medium Density Polyethylene (MDPE) or High Density Polyethylene (HDPE) is the most popular plastic in the world.
Polyethylene Terephthalate : Definition: Poly-Ethylene Terephthalate, is oftently written Polyethylene Terephthalate. It is a thermoplastic polymer resin from the Polyester family. Comments: The term polyethylene terephthalate is a source of confusion because this substance, PET, does not contain polyethylene PET is a high performance, recyclable, polymer, ranking third in terms of volume of global consumption and widely used in textile and packaging applications. The packaging industry values the excellent physical and optical properties of the polymer which is used extensively for water and carbonated soft drink bottles. The PET resin has superior properties; they are attractive, pure and safe. The low permeability of PET to oxygen, carbon dioxide and water means that it protects and maintains the integrity of products giving a good shelf life. It also has good chemical resistance. PET bottles have the advantage of being lightweight, one-tenth the weight of an equivalent glass pack. Thus, PET reduce shipping costs, and because of the material is thinner, shelf utilization is improved by 25 per cent on volume as compared to glass. High strength, low weight PET bottles can be stacked as high as glass.
Polystyrene : Definition: The Polystyrene belongs to the Aromatics family (BTX) by the Benzene. Polystyrene is a polymer of the Styrene as monomer where the Styrene itself is produced by dehydrogenation from the Ethylbenzene, a combination of Benzene and Ethylene. Comments: Polystyrene is a plastic made by polymerising styrenes. It is made in two types: a crystal polystyrene (extremely transparent) and an “impact resistant” Polystyrene that is made tougher by adding rubber. Polystyrene is used in food packaging, electronics, household appliances and heat-insulation panels for buildings.
Production Sharing Contract : Definition: Production Sharing Contract or PSC, is also called Production Sharing Agreement (PSA) Comments PSC is an agreement between the parties to a well and a host country regarding the percentage of oil and gas production each party will receive after the participating parties have recovered a specified amount of costs and expenses. The production phase supporting a PSC is defined as the phase that occurs after successful exploration and development and during which hydrocarbons are drained from an oil or gas field. The PSC were developed mostly in Asia and in Africa, between the National Oil Companies (NOC) and the International Oil Companies (IOC) to develop new oil and gas fields, especially offshore fields for which the NOC had limited experience and financial resources. The purpose of the PSC, compared with classical concessions contracts, is for the NOCs to keep some control on the development of the oil and gas field and transfer expertise to the NOC even though all the technology and strategic decisions to develop the field might be made by the IOCs. In that respect most of the risks, if not all, related to the success of the exploration are left to the IOC. The principle of the PSC is for the NOC and the IOC to define from start how they will share the costs and profits of the given oil or gas field. The costs considered for the PSC will be mainly the capital expenditures for the exploration, then for the development, then the operational expenditure when the project goes into normal operations. In the logic of the PSC the IOC will take most of, or all, the costs and risks at exploration phase while the NOC will start or increase his contribution at the development phase and in normal operations. This step by step approach gives the opportunity to the NOC to develop new reserves at no risks and limited costs. In parallel, the PSC provides the necessary time to the NOC to take on the momentum to catch up on the management of such projects. The profits are shared when the real production starts. The more the IOC will have contributed at the early stage of the exploration and development of the field, the more he may expect an higher share in return. The profit returned from the production sharing shall have to integrate key parameters such as the: - Local content obligations which may affect the costs - Local taxes which may affect the profits regardless the production sharing. In practice it means for the IOC that while he negotiates the terms of the PSC with the local NOC, he must also fix with the local authorities all the obligations related to the points above with may affect the final profit returned from the PSC.
Project : Definition: An Oil & Gas and Petrochemical Project refers to an investment planned in the future by an End User or an operator. By definition the word Project shall be used until this investment turns into a formal order for execution when the Project becomes therefore a Contract. Comment: Compared with other businesses, the border line between Project and Contract is sometime confusing in the Oil & Gas and Petrochemical industry because most of the critical decisions, technically and commercially, are made during the Project phase. It is the most strategic period for the suppliers to promote their solutions and for the End Users to define their process. This intense interactivity between all players which may take years while the Contract execution goes normally much faster leads to use extensively the word “Project” even when awarded.
Propylene : Propylene is the common name given to the Propene. It is a gas, not to be confused with the Propane. Propylene may also be called Methylethylene. Comments: From process perspective, the Propylene is a byproduct as produced in parallel of the Ethylene during the cracking operations in the steam cracker as shown in the flowchart above. It can also be obtained also as byproduct during the fraction distillation during the refining process. Then the Propane dehydrogenation and the famous Fischer-Tropsch process are the other ways delivering Propylene. Regarding the applications, the Propylene is the second most used olefins family after ethylene, it is the base for the: Polypropylene (PP), well known as most of our plastic uses in bags, packaging, caps, etc.... Acrylonitrile, more popular as acrylic fibres Propylene oxide (PO), which goes into polyurethane resins Oxo alcohols, used for PVC plasticisers and coatings Cumene, converted into epoxy resins and polycarbonate Combined with Benzene, the Propylene produces Acetone.
Proven reserves : Definition: Proven reserves is an industry term that means oil or gas that has been discovered and could be produced with today’s technology. Comments: The world consumes about 89 million barrels of oil per day, or 32.5 billion barrels per year. The industry describes a field as giant if it has more 500 million barrels of oil or BOE. In 2011, the Top 10 countries by oil proven reserves in billion barrels: - Saudi Arabia 267 which represent one-fifth of the world’s total. - Venezuela 211 - Canada 175 - Iran 137 - Iraq 115 - Kuwait 104 - UAE 98 - Russia 60 - Libya 46 - Nigeria 37 The term proven reserves is further subdivided into: - proved developed reserves - proved undeveloped reserves. In addition to the proven reserves come the unproven reserves, which are broken down into: - Probable reserves - Possible reserves that only have a 10% likelihood of being recoverable. To facilitate calculations and comparisons, these reserve categories are totalled up by the measures 1P, 2P, and 3P, which are inclusive, so include the previous safer measures as: - 1P reserves = proven reserves (both proved developed reserves + proved undeveloped reserves) - 2P reserves = 1P (proven reserves) + probable reserves, hence \"proved AND probable. - 3P reserves = the sum of 2P (proven reserves + probable reserves) + possible reserves, all 3Ps proven AND probable AND possible. Because of their definitions, the oil and gas reserves categories may grow or change category due to technological changes, economic changes, new discoveries in exploration and production, and even geological changes and the passage of time (decades) as settling occurs.
PSC or PSA : Definition: PSC is the acronym of Production Sharing Contract. PSA may also be used to refer to Production Sharing Agreement Comments PSC is an agreement between the parties to a well and a host country regarding the percentage of oil and gas production each party will receive after the participating parties have recovered a specified amount of costs and expenses. The production phase supporting a PSC is defined as the phase that occurs after successful exploration and development and during which hydrocarbons are drained from an oil or gas field. The PSC were developed mostly in Asia and in Africa, between the National Oil Companies (NOC) and the International Oil Companies (IOC) to develop new oil and gas fields, especially offshore fields for which the NOC had limited experience and financial resources. The purpose of the PSC, compared with classical concessions contracts, is for the NOCs to keep some control on the development of the oil and gas field and transfer expertise to the NOC even though all the technology and strategic decisions to develop the field might be made by the IOCs. In that respect most of the risks, if not all, related to the success of the exploration are left to the IOC. The principle of the PSC is for the NOC and the IOC to define from start how they will share the costs and profits of the given oil or gas field. The costs considered for the PSC will be mainly the capital expenditures for the exploration, then for the development, then the operational expenditure when the project goes into normal operations. In the logic of the PSC the IOC will take most of, or all, the costs and risks at exploration phase while the NOC will start or increase his contribution at the development phase and in normal operations. This step by step approach gives the opportunity to the NOC to develop new reserves at no risks and limited costs. In parallel, the PSC provides the necessary time to the NOC to take on the momentum to catch up on the management of such projects. The profits are shared when the real production starts. The more the IOC will have contributed at the early stage of the exploration and development of the field, the more he may expect an higher share in return. The profit returned from the production sharing shall have to integrate key parameters such as the: - Local content obligations which may affect the costs - Local taxes which may affect the profits regardless the production sharing. In practice it means for the IOC that while he negotiates the terms of the PSC with the local NOC, he must also fix with the local authorities all the obligations related to the points above with may affect the final profit returned from the PSC.
PTA : Definition: PTA is the acronym of Purified Terephthalic Acid. Comment: Modern technologies produce PTA by the catalytic liquid-phase oxidation of Para-Xylene (PX) in acetic acid, which is done in the presence of air and uses manganese or cobalt acetate as a catalyst. PTA is purified in a crystallizer, where unreacted xylene and water are flashed off. Nearly all the output of purified PTA is consumed in the production of polyester, including polyester fiber,polyethylene terephthalate (PET) bottle resin and polyester film. Other, smaller outlets for PTA are production of cyclohexanedimethanol, terephthaloyl chloride, copolyester-ether elastomers, plasticizers and liquid crystal polymers.
Purified Terephthalic Acid : Definition: Purified Terephthalic Acid is commonly called PTA, it is produced by the catalytic liquid-phase oxidation of Para-Xylene (PX) in acetic acid, which is done in the presence of air and uses manganese or cobalt acetate as a catalyst. PTA is purified in a crystallizer, where unreacted xylene and water are flashed off. Comment: Nearly all the output of purified PTA is consumed in the production of polyester, including polyester fiber,polyethylene terephthalate (PET) bottle resin and polyester film. Other, smaller outlets for PTA are production of cyclohexanedimethanol, terephthaloyl chloride, copolyester-ether elastomers, plasticizers and liquid crystal polymers.