Economic Report 2018

6. Glossary

1

Break-Even Costs

The level required for a development to be cash-neutral, covering the cost of developing and operating a field

Brownfield

An oil or gas field already in production

2

Contingent Resources

Volumes which are potentially recoverable, but not yet mature enough for development

CCUS

Carbon, capture, usage and storage

3

Cushion Gas

The minimum volume of gas in a storage reservoir to provide the necessary pressure to deliver gas to customers when required

CoP DRD

Cessation of production

Decommissioning Relief Deed

4

EBITDA

Earnings before interest, taxes, depreciation, and amortization

ERRV

Emergency Response & Rescue Vessel

FID

Final Investment Decision

5

Greenfield

An oil or gas development not yet in production

M&A OPEC

Mergers and acquisitions

The Organization of the Petroleum Exporting Countries

6

OSPAR

The Oslo and Paris convention is the Convention for the Protection of the Marine Environment of the North-East Atlantic The total annual production divided by the maximum production potential of a field

Production Efficiency

7

PRT p/th

Petroleum Revenue Tax Pence per therm (for gas)

8

Prospective Resources

Volumes which are yet to be discovered

Reserves

Volumes which are discovered, commercial and within fields in production or under development

9

RFCT

Ring Fence Corporation Tax Supplementary Charge Transferable Tax History UK Continental Shelf Unit development costs

SC

TTH

10

UKCS UDC UOC

Unit operating costs

11

73