Atyrau State University named after Kh. Dosmukhamedov

Student’s independent work

Oil and gas industry: Companies

Done by: Aitpaev Denis

Gr. OPR 404-1

Supervisor: Ingamova Zh. G.

Atyrau, 2012

Outline

Introduction………………………………………………………………….

Companies……………………………………………………………………

Conclusion……………………………………………………………………

References……………………………………………………………………

Glossary………………………………………………………………………

Introduction

In 2004 celebrated 105 years of the oil industry of Kazakhstan. The countdown of the

history of national oil production started in 1899, when the field Karagungul got the first oil

gusher. Today, oil production is the main and the most dynamic sector of the economy of

Kazakhstan. Oilers provide significant portion of the gross national product of budget revenues

and foreign exchange earnings to the country. During the years of independence, the country was

able to double oil output.

Kazakhstan's oil industry is experiencing a period of active growth. This is largely

predetermined by natural factor - the republic is among 15 countries in the world with the largest

hydrocarbon reserves. Yet the gradual role in the development of the industry is well thought out

and consistent policy aimed at stimulating investment process. It is significant that in

Kazakhstan, along with major international consortia successfully develop their business dozens

of small and medium-sized oil companies, whose number is growing every year. The largest

proven oil reserves has Atyrau region, which accounts for over a third of known reserves of

liquid hydrocarbons in Kazakhstan. In this paper I will give a brief description of numerous oil

companies in Atyrau and their influence on economical growth and prosperity.

AGIP KCO

Agip KCO acts as an agent for the operator of the North Caspian Sea Production Sharing

Agreement of 1997, North Caspian Operating Company, NCOC. NCOC itself acts on behalf of

co-venture partners comprising state oil company KMG, Eni, Shell, ExxonMobil and Total along

with ConocoPhillips and INPEX, who hold smaller equity stakes.  An Eni subsidiary, Agip KCO

is responsible for the execution of the first phase of development of the giant Kashagan field

which holds some 35 billion barrels of oil in place and reserves of over 11 billion barrels beneath

the Kazakhstan section of the north Caspian Sea.  Agip KCO is also responsible for the project

execution of the onshore elements of the second phase of the Kashagan development. 

NCOC

In October 2008 the Republic of Kazakhstan reached an agreement with the seven

companies participating in the NCSPSA to form a new joint operating company  North Caspian

Operating Company B.V. In January 2009 NCOC formally became operator under the NCSPSA,

taking over the role that was formerly held by Agip KCO. Assets within the 5,600 square

kilometer NCSPSA contract area include the giant Kashagan field, one of the largest petroleum

developments in the world. Other assets include the Kalamkas, Aktoty and Kairan fields.

Co-venturers in the NCSPSA are also shareholders in NCOC, each holding the same

participating interest as in the NCSPSA.

As delegated Operator of activities under the NCSPSA, NCOC defines and steers the

overall strategy of the NCSPSA venture, ensures planning and coordination, manages

geosciences and conceptual studies, and interfaces with stakeholders – in particular with

authorities.

The execution of operations is delegated by NCOC to four Agent companies: 

Agip KCO is responsible for delivery of Kashagan Phase I (Experimental

Programme, including drilling);

Shell Development Kashagan B.V. (SDK) is responsible for the planning,

development and construction of the offshore facilities of Kashagan Phase II, while Agip KCO

will do the same for the onshore facilities; 

ExxonMobil Kazakhstan Inc. is responsible for Kashagan Phase II drilling

activities; 

KMG and Shell will jointly manage production operations of all phases through

NC Production Operations Company (NCPOC).

NCPOC

The NCSPSA area includes the giant Kashagan field, 80 kilometers South-East of

Atyrau. The Kashagan field is the biggest hydrocarbon discovery since the 1960’s and the first

large-scale offshore petroleum development in Kazakhstan.

The project includes a unique combination of technical and environmental challenges

including a deep, high-pressure reservoir with high hydrogen sulphide content, limited

infrastructure/resources, wide temperature variations from -40 to +40C and limited marine

access.

Kashagan will make an important contribution to the global energy supply, bringing

prosperity and international recognition to Kazakhstan as a key oil producing region in the

world.

On 22 January 2009, a new operating company, North Caspian Operating Company B.V.

(NCOC), officially became Operator under the North Caspian Sea Production Sharing

Agreement (NCSPSA).

The execution of operations is delegated by NCOC to four Agent companies: Agip KCO,

Shell Development Kashagan B.V. (SDK), ExxonMobil Kazakhstan Inc and NC Production

Operations Company B.V. (NCPOC). NCPOC will manage production operations of all phases.

Hydrocarbon deposits within the North Caspian contract area are among the most

challenging in the world to develop.

The 5,600 square kilometres NCSPSA area includes the giant Kashagan field, located 80

kilometres south-east of Atyrau. Other assets within the NCSPSA contract area include the

Kalamkas, Aktote and Kairan fields. The Kashagan field is the biggest hydrocarbon discovery

since the late 1960s and the first large-scale offshore petroleum development in Kazakhstan.

Kashagan extends over a surface of approximately 75 x 45 kilometres, around the size of Greater

London. The field is expected to produce over a 40-year period, reaching a Plateau of 1.5 million

barrels of oil per day.

The project involves a unique combination of technical complexity and environmental

challenges. The size and the variety of operations make it one of the greatest challenges of the

petroleum industry worldwide. The field is heavily over-pressured, which presents a significant

drilling challenge. Offshore operations are conducted in extreme continental weather conditions.

Winters are harsh and temperatures can drop to -40ºC (-40ºF), while summer temperatures can

reach +40ºC (+104ºF).

Kashagan is a huge project with an estimated 35 billion barrels of oil-in-place of which

11 billion barrels are considered as recoverable by the venture.

Kashagan challenges:

800 bar @ 4000 m

15% H2S & 5% CO2

Combination of ice, shallow waters and sea level fluctuations, frozen five

months/year

Landlocked area, closed sea

Highly sensitive environment

TCO

Tengiz is located on the 2,500 square kilometer (1,600 square mile) project license area

which includes the super giant Tengiz field, the smaller but sizable Korolev field and several

exploratory prospects.

The Tengiz and Korolev fields have potential for an estimated 750 million to 1.1 billion

metric tonnes (6 billion to 9 billion barrels) of recoverable oil. Estimated original oil in place in

the drilled and un–drilled portions of Tengiz field is about 3 billion metric tonnes (26 billion

barrels). At a world class size of 190 million metric tonnes (1.5 billion barrels), Korolev is one–

sixth the size of Tengiz.

Tengiz field is one of the world's deepest developed super giant oil fields, with the top of

the reservoir at about 4,000 meters (13,000 feet). Tengiz reservoir is 19 kilometers (12 miles)

wide by 21 kilometers (13 miles) long. The oil column measures an incredible one mile thick.

The reservoir area is so large that one would have to run nearly two marathons to cover the entire

distance around it.

TengizTengiz field discovered in 1979 is one of the greatest in the world. Tengiz is the most

deep-lying and biggest field. Tengiz is the most deep-lying and biggest field. Its depth is 3810 m,

width – 19 km, length -21 km, oil mass thickness -1,6 km.

In 1993, the Government of RK established Joint-Venture «TengizChevrOil» Ltd (TCO)

with «Chevron» company. Nowadays, it has four partners: NC «KazMunaiGas» JSC (20%),

«Chevron Overseas» (50%), «Exxon Mobil» (25%) and «LokArko» (5%).

TCO is mainly engaged in geologic exploration, production and selling of hydrocarbon.

The licensed site of the project includes huge Tengiz field and smaller Korolevsk field known for

considerable reserves.

TCO’s raw materials are processed into a number of finished products with stabilized

crude oil being the main product. Associated gas is processed into marketable gases: dry gas,

propane, butane. Besides, sulphur is produced from hydrogen sulphide which is known for high

concentration in Tengiz oil.

The last few years saw the start-up of facilities, which TCO started constructing in the

first years of its existence. It was these facilities that made it possible not only to set up a

production process conforming to all international standards, but also to reduce the adverse

effect on the environment and considerably increase production capacity.

TCO's strategy in increasing our use of Kazakhstani goods and services centers around

four elements: creating opportunity, growing manufacturing and production capabilities,

transferring skills and maximizing local employment. Using this philosophy, Tengizchevroil has

been able to increase our Kazakhstani goods and services spending from $27 mln. in 1993 to

$1,350 bln in 2011. In 2010, 68 percent of our total spend for the year was spent with

Kazakhstani companies.

Tengizchevroil proactively identifies qualified suppliers to include in tenders and helps

develop qualified suppliers where none exist. TCO uses loans and educational forums to support

this effort. We also work hand-in-hand with companies to help them adopt international

standards. Tengizchevroil and our partners worked for two years with KazMorTransFlot to

design and construct the first double-hulled tankers to traverse the Caspian Sea. The Kazakhstani

company is now safely and reliably moving Tengiz crude.

Our most aggressive effort to date has been part of our expansion project. About U.S. $2

billion has been spent on Kazakhstani goods and services with more than 320 local companies on

more than 4,000 equipment and supply orders. The Second Generation Plant is an excellent

example of the success in using Kazakhstani suppliers. The plants 32 air coolers and 13 pressure

vessels were produced by Beylkamid. Forty percent of SGP's one-kilometer steel pipe rack was

produced by Imstalkon in Karaganda, Almaty and Taraz. Additionally, Shanyrak Village, a $112

million project, was built by a Kazakh consortium of Munaigazkurylys, Consolidated

Development Corporation and Intergazstroi.

Local Content and Small Business Development

Ensuring that there are world-class suppliers of goods and services in Kazakhstan is

essential to Tengizchevroil's sustainable growth. As TCO continues to grow our business in

Kazakhstan, we are eager to expand our relationships and investments with local companies. In

order to help improve availability of goods and services in Kazakhstan, Tengizchevroil

frequently co-hosts supplier forums with other large Kazakhstani crude oil producers.

At the 2008 forum, representatives of local and international suppliers and state bodies

discussed the continued development of Kazakhstan's goods and services suppliers to the energy

business. A variety of workshops were offered to help businesses learn the standards, processes

and best practices in working with large companies. Local companies also met with international

suppliers to create potential joint ventures. Joint ventures between Western and Kazakhstani

companies have proved successful over the life of Tengizchevroil in helping local companies

develop products and services that comply with international standards.

Another example of building local capabilities and creating employment is our small

business loan program. Under this program, we provide interest-free loans to entrepreneurs to

create businesses. TCO assists the businesses we support through these loans with business

planning. The program targets opportunities TCO can support through our business needs for

products or services. Over the life of the program, more than $7 million has been loaned, 174

projects have been funded and more than 1,400 people have been employed.

There are many local and regional examples of companies who can attribute their

success, in part, to Tengizchevroil's loan program. Akberen used their TCO loan to purchase

modern printing equipment. Akberen is currently producing everything from Tengizchevroil

business cards to banners and brochures.

Adem Ecology - wastes disposal and recycling services. In early 2010 Adem ecology

LLP received a loan from TCO to purchase innovative household waste recycling equipment

package which for the Atyrau oblast was a new badly needed waste management system which

would help minimize amounts of municipal garbage waiting to be hauled out and dumped to the

landfill and maximize output of standard assortment of recycled materials.

When projects under SMBD programs are recommended for TCO funding specialists

from various TCO departments are involved in their review and approval processes to determine

primarily their relevance for TCO needs and that of oil and gas sector as a whole.

KazMunayGas

KazMunayGas was established in 2002. JSC NC “KazMunayGas” is a high-performance

and competitive integrated Oil and Gas Company, which meets the highest safety standards of

operational activity.

Oil and Gas Production

NC «KazMunayGas» JSC is the owner of 44 Oil and Gas onshore fields in Mangistau

and Atyrau regions.

Total fields area is 837, 4 square km. The production divisions of the company have been

in operation for more than 90 years, and their specialists have deep knowledge and solid

experience.

Transportation

NC «KazMunayGas» JSC provides 65% of oil transportation, 100% of gas

transportation, 50% of tanker transportation, carried out on the territory of Kazakhstan.

Pipeline Oil transport is performed by «KazTransOil» JSC, gas transport – by «KazTransGas»

JSC, tanker transportation is carried out by “National Maritime Shipping Company

«KazMorTransFlot» JSC.

Refining

The company runs main refineries in Kazakhstan («Atyrau Refinery» LLP;

PetroKazakhstan OilProducts» LLP; «Pavlodar petrochemical plant» JSC), and owns refineries

in Romania.

Marketing

NC KazMunayGas JSC sells oil and products of oil and gas refining, protects interests of

the state in the export policy in trading these products.

Service sector

JSC NC KazMunaiGaz carries out significant work on development of service area,

search and development of new areas and partnerships, implementation of new investment

projects.

Conclusion

To conclude, Kazakhstan on the proven reserves is in ninth place in the world. Proved

that in the depths of Kazakhstan has oil reserves of 6.5 billion tons and these reserves are

projected to reach the mark of 20-25 billion tons. Stable growth of the welfare of the country and

the citizens, great prospects, growing economy, international cooperation and, of course, the

recognition of the international community in Kazakhstan - all this gave the possession of "black

gold." In 10 years of independence, the total oil production of 100 million tonnes, of which 25-

30% were obtained in the Tengiz field. According to forecasts, by 2015 this figure will increase

to 150 million tons of oil, which is extracted mainly from the Kashagan field (about 50%). Great

expectations Kazakh government ties with the North-Caspian project, namely the Kashagan.

With the start of commercial production at Kashagan Kazakhstan will be top 5 largest oil

companies in the world.

The prospect of the oil industry in Kazakhstan after Kashagan is Kurmangazy. Unlike

neighboring Kashagan Kurmangazy is suprasalt. This will greatly facilitate the development of

Kurmangazy because not require tunneling through the salt layer.

There are some prospects for the Middle Caspian is a block - N. Block N is a group of oil

and gas structures in the Middle Caspian - Nursultan, Sary-Arka, Akmola, Al-Farabi, Ulytau

Samal Akbota and Ketik. Oil companies in Kazakhstan that develop and produce crude oil, a lot.

They are presented as well as Kazakhstan and foreign enterprises. Huge oil reserves attract

foreign businessmen, investors and businessmen. Many foreign oil companies have offices in

different cities of Kazakhstan and cooperate with local staff. In this paper presented the most

influential oil companies and their activities in the oil and gas field on the territory of

Kazakhstan.

References:

Www . oilcareer . kz

Www . zp . kz

Www . kmg . kz

Www . Eni . it

Kazakhstan. National Encyclopedia/Editor in chief, B.Ayagan. 2007

Glossary

Abandon (1) The proper plugging and abandoning of a well in compliance with all applicable regulations, and the cleaning up of the wellsite to the satisfaction of any governmental body having jurisdiction with respect thereto and to the reasonable satisfaction of the operator.(2) To cease efforts to find or produce from a well or field.(3) To plug a well completion and salvage material and equipment.

Abatement (1) The act or process of reducing the intensity of pollution.(2) The use of some method of abating pollution.

American Petroleum Institute (API)

The American Petroleum Institute is the primary trade association representing the oil and natural gas industry in the United States.

Annulus The space between: (1) The casing and the wall of the borehole.(2) Two strings of casing.(3) Tubing and casing.

API American Petroleum Institute

Api County Code An indicator developed by the American Petroleum Institute (API) to identify areas such as counties and other subdivision areas identified within state boundaries. Defined by API Bulletin D12A, as amended. This code becomes a part of the API Well Number.

Api State Code The indicator assigned to a state, as defined in API Bulletin D12A, as amended. This code is a part of the API Well Number (The Api State Code for Colorado is 05).

Api Well Number A well identifier assigned as defined in API (American Petroleum Institute) Bulletin D12A, as amended. The API Well Numbers are assigned by the appropriate state or federal regulatory agency.

Appraisal Well A well drilled as part of an appraisal drilling program which is carried out to determine the physical extent, reserves and likely production rate of a field.

Associated Gas A well drilled as part of an appraisal drilling program which is carried out to determine the physical extent, reserves and likely production rate of a field.

Barrel A unit of volume measurement used for petroleum and its products (7.3 barrels = 1 ton: 6.29 barrels = 1 cubic meter).

bbl One barrel of oil; 1 barrel = 35 Imperial gallons (approx.), or 159 liters (approx.); 7.5 barrels = 1 ton (approx.); 6.29 barrels = 1 cubic meter.

bcf Billion cubic feet; 1 bcf = 0.83 million tons of oil equivalent.

bcm Billion cubic meters (1 cubic meter = 35.31 cubic feet).

Block An acreage sub-division measuring approximately 10 x 20 kms, forming part of a quadrant. e.g. Block 9/13 is the 13th block in Quadrant 9.

blow-down Condensate and gas is produced simultaneously from the outset of production.

Blow-out When well pressure exceeds the ability of the wellhead valves to control it.

Oil and gas "blow wild" at the surface.

Blow-out preventers (BOPs)

Are high pressure wellhead valves, designed to shut off the uncontrolled flow of hydrocarbons.

BOP See blow-out preventers

Borehole The hole as drilled by the drill bit.

Bradenhead A casinghead.

Bradenhead Test

Casing Pipe cemented in the well to seal off formation fluids or keep the hole from caving in.

Casing string The steel tubing that lines a well after it has been drilled. It is formed from sections of steel tube screwed together.

Central estimate A range of exploration drilling scenarios from which the following activity levels, based on recent historical experience, are adopted as the central estimates.

Christmas tree The assembly of fittings and valves on the top of the casing which control the production rate of oil.

COGCC Colorado Oil and Gas Conservation Commission

COGIS Colorado Oil and Gas Information Systems

Commercial field An oil and/or gas field judged to be capable of producing enough net income to make it worth developing.

Completion The installation of permanent wellhead equipment for the production of oil and gas.

Condensate Hydrocarbons which are in the gaseous state under reservoir conditions and which become liquid when temperature or pressure is reduced. A mixture of pentanes and higher hydrocarbons.

Coring Taking rock samples from a well by means of a special tool -- a "core barrel".

Crane barge A large barge, capable of lifting heavy equipment onto offshore platforms. Also known as a "derrick barge".

Crude Oil Liquid petroleum as it comes out of the ground as distinguished from refined oils manufactured out of it.

Cubic foot A standard unit used to measure quantity of gas (at atmospheric pressure); 1 cubic foot = 0.0283 cubic meters.

Cuttings Rock chips cut from the formation by the drill bit, and brought to the surface with the mud. Used by geologists to obtain formation data.

Deepen To increase the distance below a specified reference datum.

Derrick The tower-like structure that houses most of the drilling controls.

Development phase The phase in which a proven oil or gas field is brought into production by drilling production (development) wells.

Drill (1)To bore a hole, Also see Drilling(2)An implement with cutting edges used to bore holes.

Drilling The using of a rig and crew for the drilling, suspension, completion, production testing, capping, plugging and abandoning, deepening, plugging back, sidetracking, redrilling or reconditioning of a well (except routine cleanout and pump or rod pulling operations) or the converting of a well to a source, injection, observation, or producing well, and including stratigraphic tests. Also includes any related environmental studies. Associated costs include completion costs but do not include equipping costs.

Drilling rig A drilling unit that is not permanently fixed to the seabed, e.g. a drillship, a semi-submersible or a jack-up unit. Also means the derrick and its associated machinery.

Dry Gas Natural gas composed mainly of methane with only minor amounts of ethane, propane and butane and little or no heavier hydrocarbons in the gasoline range.

Dry hole A well which has proved to be non-productive.

E&A Abbreviation for exploration and appraisal.

E&P Abbreviation for exploration and production.

Enhanced oil recovery

A process whereby oil is recovered other than by the natural pressure in a reservoir.

Exploration drilling Drilling carried out to determine whether hydrocarbons are present in a particular area or structure.

Exploration phase The phase of operations which covers the search for oil or gas by carrying out detailed geological and geophysical surveys followed up where appropriate by exploratory drilling.

Exploration well A well drilled in an unproven area. Also known as a "wildcat well".

Farm in When a company acquires an interest in a block by taking over all or part of the financial commitment for drilling an exploration well.

Field A geographical area under which an oil or gas reservoir lies.

Fishing Retrieving objects from the borehole, such as a broken drillstring, or tools.

Formation pressure The pressure at the bottom of a well when it is shut in at the wellhead.

Formation water Salt water underlying gas and oil in the formation.

Fracturing A method of breaking down a formation by pumping fluid at very high pressures. The objective is to increase production rates from a reservoir.

G Gas.

G/C Gas Condensate.

Gas field A field containing natural gas but no oil.

Gas injection The process whereby separated associated gas is pumped back into a reservoir for conservation purposes or to maintain the reservoir pressure.

Gas/oil ratio The volume of gas at atmospheric pressure produced per unit of oil produced.

Geographic Information Systems(GIS)

A computer system capable of assembling, storing, manipulating, and displaying geographically referenced information.

GIS See: Geographic Information Systems

Hydrocarbon A compound containing only the elements hydrogen and carbon. May exist as a solid, a liquid or a gas. The term is mainly used in a catch-all sense for oil, gas and condensate.

Idle Producing

Injection well A well used for pumping water or gas into the reservoir.

Jacket The lower section, or "legs", of an offshore platform.

Kick A well is said to "kick" if the formation pressure exceeds the pressure exerted by the mud column.

Lay barge A barge that is specially equipped to lay submarine pipelines.

Liquefied natural gas (LNG)

Oilfield or naturally occurring gas, chiefly methane, liquefied for transportation.

Liquefied petroleum gas (LPG)

Light hydrocarbon material, gaseous at atmospheric temperature and pressure, held in the liquid state by pressure to facilitate storage, transport and handling. Commercial liquefied gas consists essentially of either propane or butane, or mixtures thereof.

mboe Million Barrels Oil Equivalent.

Mechanical Integrity Test

The act of setting a packer or retrievable bridge plug above the perforations in a wellbore and applying pressure to the annulus in order to ensure soundness of the casing.

Metric ton Equivalent to 1000 kilos, 2204.61 lbs.; 7.5 barrels.

MIT Mechanical Integrity Test

mmcfd Millions of cubic feet per day (of gas).

Moonpool An aperture in the center of a drillship or semi-submersible drilling rig, through which drilling and diving operations can be conducted.

MOU/MOA MEMORANDUMS OF UNDERSTANDING/AGREEMENT

Mud A mixture of base substance and additives used to lubricate the drill bit and to counteract the natural pressure of the formation.

Natural gas Gas, occurring naturally, and often found in association with crude petroleum.

Natural Gas Policy Act Of 1978

Enacted on November 9, 1978 and became effective December 1, 1978. The Act has been amended, and it replaced or amended the Natural Gas Act. Refer to 15USC 3301-3432.

NGLs Natural gas liquids. Liquid hydrocarbons found in association with natural gas.

Ngpa SEE: Natural Gas Policy Act of 1978.

O Oil.

O&G Oil and Gas.

Oil A mixture of liquid hydrocarbons of different molecular weights.

Oil field A geographic area under which an oil reservoir lies.

Oil in place An estimated measure of the total amount of oil contained in a reservoir, and,

as such, a higher figure than the estimated recoverable reserves of oil.

Operator The company that has legal authority to drill wells and undertake the production of hydrocarbons that are found. The Operator is often part of a consortium and acts on behalf of this consortium.

Payzone Rock in which oil and gas are found in exploitable quantities.

Permeability The property of a formation which quantifies the flow of a fluid through the pore spaces and into the wellbore.

Petroleum A generic name for hydrocarbons, including crude oil, natural gas liquids, natural gas and their products.

Platform An offshore structure that is permanently fixed to the seabed.

Porosity The percentage of void in a porous rock compared to the solid formation.

Possible reserves Those reserves which at present cannot be regarded as ‘probable’ but are estimated to have a significant but less than 50% chance of being technically and economically producible.

Primary recovery Recovery of oil or gas from a reservoir purely by using the natural pressure in the reservoir to force the oil or gas out.

Probable reserves Those reserves which are not yet proven but which are estimated to have a better than 50% chance of being technically and economically producible.

Proven field An oil and/or gas field whose physical extent and estimated reserves have been determined.

Proven reserves Those reserves which on the available evidence are virtually certain to be technically and economically producible (i.e. having a better than 90% chance of being produced).

Recomplete An operation involving any of the following: (1) Deepening from one zone to another zone.(2) Completing well in an additional zone.(3) Plugging back from one zone to another zone.(4) Sidetracking to purposely change the location of the bottom of the well, but not including sidetracking for the sole purpose of bypassing obstructions in the borehole.(5) Conversion of a service well to an oil or gas well in a different zone.(6) Conversion of an oil or gas well to a service well in a different zone.

Recoverable reserves

That proportion of the oil and/gas in a reservoir that can be removed using currently available techniques.

Recovery factor That proportion of the oil and/gas in a reservoir that can be removed using currently available techniques.

Reenter To enter a previously abandoned well.

Reservoir The underground formation where oil and gas has accumulated. It consists of a porous rock to hold the oil or gas, and a cap rock that prevents its escape.

Riser (drilling) A pipe between a seabed BOP and a floating drilling rig.

Riser (production) The section of pipework that joins a seabed wellhead to the Christmas tree.

Roughneck Drill crew members who work on the derrick floor, screwing together the sections of drillpipe when running or pulling a drillstring.

Roustabout Drill crew members who handle the loading and unloading of equipment and assist in general operations around the rig.

Royalty payment The cash or kind paid to the owner of mineral rights.

Secondary recovery Recovery of oil or gas from a reservoir by artificially maintaining or enhancing the reservoir pressure by injecting gas, water or other substances into the reservoir rock.

Shut In Well A well which is capable of producing but is not presently producing. Reasons for a well being shut in may be lack of equipment, market or other.

Shutdown A production hiatus during which the platform ceases to produce while essential maintenance work is undertaken.

SI/TA Shut In /Temporarily Abandoned

Sidetrack A wellbore segment extending from a wellbore intersection along a wellbore path to a different wellbore bottomhole from any previously existing wellbore bottomholes.

Sidetracking The well activity of drilling a new wellbore segment from a wellbore intersection to a new wellbore bottomhole or target.

Spud-in The operation of drilling the first part of a new well.

Surface Location The location of a well or facility/measurement point.

Surface Reclamation

A restoration of the surface as for productivity or usefulness.

Suspended well A well that has been capped off temporarily.

tcf Trillion Cubic Feet (of gas).

Temporarily Abandoned

The act of isolating the completed interval or intervals within a wellbore from the surface by means of a cement retainer, cast iron bridge plug, cement plug, tubing and packer with tubing plug, or any combination thereof.

Toolpusher Second-in-command of a drilling crew under the drilling superintendent. Responsible for the day-to-day running of the rig and for ensuring that all the necessary equipment is available.

Topsides The superstructure of a platform.

UIC Underground Injection Control

Underground Injection Control

A program required in each state by a provision of the Safe Drinking Water Act (SDWA) for the regulation of Injection Wells, including a permit system. An applicant must demonstrate that the well has no reasonable chance of adversely affecting the quality of an underground source of drinking water before a permit is issued.

Well log A record of geological formation penetrated during drilling, including technical details of the operation.

Wildcat well A well drilled in an unproven area. Also known as an "exploration well". [The term comes from exploration wells in West Texas in the 1920s. Wildcats were abundant in the locality, and those unlucky enough to be shot were hung from oil derricks.]

Workover Remedial work to the equipment within a well, the well pipework, or relating to attempts to increase the rate of flow.