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TABLE OF CONTENTS

REFINERY TERMINOLOGY
I.A. Refining
API gravity
An arbitrary scale expressing the gravity or density of liquid
petroleum products devised jointly by the American Petroleum Institute
and the National Bureau of Standards. The measuring scale is calibrated
in terms of degrees API. Oil with the least specific gravity has the
highest API gravity.
Higher API gravity crude (light crudes) have a higher price than
lower ones given their higher quality product yields.
The formula for determining API Gravity is:
API gravity = (141.5/specific gravity at 60 degrees F) 131.5.
Typical API gravity

- Brent Dtd 38.5


- Urals Med 31-33

Romanian terminology: Densitatea API


Black products
Diesel oils and fuels oils, i.e. products from the low or heavy end
of the distillation process.
Petromidia:
FUEL OIL
Fuel Oil
Vaccuum distillate/VGO
VGO
PETROLEUM COKE
Petroleum Coke
SULPHUR
Petroleum Sulphur

2.98
2.98
5.46
5.46
6.46
6.46
0.87
0.87

Romanian terminology: Produse negre

Backcasting analysis
What if analysis performed after the month finishes and we have all
actual data.
We are introducing all these data into the monthly plan simulation
and check were was the major constraint that influenced the financial
result: crude recipe processed, unit capacity constraints, market sales,
blending giveaway.
Catalysts
Any substance that changes the rate of a reaction without itself
being changed in the reaction; catalysts can be solids, liquids or gases,
and they may be individual molecules that are dissolved in a liquid
containing the reacting molecules.
The most common industrial catalysts are solids used in treating
feeds that are liquids or gases.
Romanian terminology: Catalizatori
Cetane number or CN is a measurement of the combustion
quality of diesel fuel during compression ignition. It is a significant
expression

of

diesel

fuel

quality

among

number

of

other

measurements that determine overall diesel fuel quality. Cetane


number of a fuel is defined as the percentage by volume of normal
cetane in a mixture of normal cetane and alpha-methyl naphthalene
which has the same ignition characteristics (ignition delay) as the test
fuel when combustion is carried out in a standard engine under
specified operating conditions.
Romanian terminology: Cifra cetanica (CC).

Crack
Represents the difference between a crude market price and a
product market price. It is generally used as an indicator of expected
refinery profitability based exclusively on market prices. NWE market
uses Brent cracks while Med market uses Urals cracks as indicators.
These spread differentials which represent refining margins can be
quoted in dollars per barrel -by converting the product prices into
dollars per barrel and subtracting the crude price or dollars per metric
tonne by converting the crude price in metric tonne and substracting
it from product price.
Crack formula = Product price Crude price
Gasoline Med crack = Prem Unl FOB Med Urals Med
Romanian terminology:
Crude Oil
A mineral oil consisting of a mixture of hydrocarbons of natural
origin, yellow to black in colour, of variable specific gravity and
viscosity.
Crude is the raw material which is refined into gasoline, heating
oil, jet fuel, propane, petrochemicals, and other products.

Type:
Sour Crude Oil:

Sour Crude Oil


%S
REBCO
1,2-1,45
Kazakh/Standard Export Blend Crude
1,2-1,45
Oil

Sweet Crude Oil:


Sweet Crude Oil
Zaikinskaya Crude Oil
Azeri Crude Oil
Siberian Light Crude Oil
Kumkol Crude Oil
Caspian Blend Crude Oil
Aktubinsk Crude Oil
Okarem Crude Oil
Cheleken Crude Oil
Tengiz Crude Oil
Turkmen Crude Oil
K & K Crude Oil
Marine Crude Oil
Poltava Crude Oil

%S
0,24
0,15-0,4
0,4-0,6 -0,57
0,08
0,57
0,74
0,21
0,41
0,49
0,29
0,29
0,05
0,08

Petromidia: Processing Crude Oil:


RAFINARIE
TITEI
Sulfuros
Titei REBC O
Titei Kazach/ Sebco
Titei Amestec Sour
Titei Iranian greu
Titei Qarun
Nesulfuros
Titei Siberian light
Titei C heleken
Titei Melllitah
Titei Amestec Sweet
Titei C PC
Titei Azeri
Titei Tenghiz

Iesiri produse/ Primiri m.p


Cumulat 12 luni 2007
tone
3670281
2812180
1319085
476065
0
950007
67023
858101
3669
86722
47633
538219
78567
73719
29572

%
95.90
73.48
34.46
12.44
0.00
24.82
1.75
22.42
0.10
2.27
14.06
2.05
1.93
0.77

Other Feedstock
Products processed in refinery units for obtaining valuable
products: methane used for hydrogen production, methanol for MTBE
production, etc.
Other feedstock
Gasoline
Vacuum Distillate
Fuel Oil
Methanol
MTBE
Gasoline
Propane for chemical use
Other feedstock

157096
4889
9064
18472
10238
67845
0
31050
15538

4.10
0.13
0.24
0.48
0.27
1.77
0.00
0.81
0.41

Urals Med (CIF Augusta): This daily spot price assessment


takes

into

account

cargoes

loading

from

Black

Sea

ports

of

Novorossiisk, Odessa, Theodosia, Kavkaz, Yuzhny and Kerch for delivery


into the Mediterranean.
The assessment basis is CIF Augusta, Sicily/Italy. Cargoes
delivered to other ports in the Mediterranean can also be considered,
with freight costs taken into account. Cargoes for delivery within the
Black Sea are not considered.
Gravity is approximately 31-33 degrees, with a sulfur content of
1.3%. The current bbl/mt conversion factor for Urals crude oil is 7.2407.329.
Urals ex-Novorossiisk (FOB): This daily spot assessment takes
into account cargoes traded on a FOB basis at the Black Sea
port of Novorossiisk.
The API gravity is approximately 31-33 degrees, with a sulfur
content of 1.3%. The current bbl/mt conversion factor for Urals crude
oil is 7.240-7.329.

CPC Blend (CIF Augusta): This daily spot assessment takes into
account cargoes loading from Black Sea port CPC Terminal for delivery
into

the

Mediterranean.

The

assessment

basis

is

CIF

Augusta,

Sicily/Italy.
The API gravity for CPC Blend is 45 degrees and the sulfur content
is 0.6%. The bbl/mt conversion factor is 7.864.
CPC Blend FOB (CPC Terminal): This daily spot assessment
takes into account cargoes loading from the CPC terminal on the Black
Sea.
Azeri Light FOB Supsa: This daily spot assessment takes into
account cargoes loading from the Black Sea port of Supsa.
The API for Azeri Light is 34-34.5 degrees and the sulfur content
is

0.143-0.15%.

The

bbl/mt

conversion

factor

is

7.374-7.395.

The assessment is expressed as a high and a low.


Kumkol: This daily spot assessment takes into account cargoes of
Kumkol delivered into the Mediterranean on a CIF Augusta basis.
The API is 40-41 degrees and the sulfur content is 0.1-0.2%.
The bbl/mt conversion factor is 7.641-7.686.
H/CAMS
Haverly Crude Assay Management System-crude simulator based
on an assay library used for generating valuable data about the crude
types that we are processing in the refinery.

Loss
The amount by which the total volume of refinery output is less
than the total volume of refinery input for a given period of time. The
processing loss arises when crude oil and other hydrocarbons are
processed into petroleum products that are, on average, more dense
than the input.

Petromidia:
Loss= Fuel gas for burning + Coke/Catalyst + Technological loss
YEAR 2007: Total Loss = 224,533 mt
Romanian terminology: Consum

Mothball
To place a generating facility in an inactive state so that it can
neither be brought into operation immediately nor counted towards
reserve margin
Romanian terminology: In conservare

Nameplate/design capacity
The full-load continuous rating of a generator or other electric
power production equipment under specific conditions as designated by
the manufacturer. Installed generator nameplate rating is usually
indicated on a nameplate physically attached to the generator.
Romanian terminology: Capacitate proiectata

Netback
Measure the return crude oil producers receive from product
prices after refiners take out their operating costs and transportation
expenses.
This indicates the attractiveness of the produced crude. The
calculation takes into account the location of the market (refinery site),

the refinery margin calculation and the transportation from wellhead to


the refinery.
Netback formula = Refinery revenue (Operating expenses +
Transportation)
PIMS
Process Industry Modelling System-specialized program used
for economical evaluation of all commercial and technical constraints
that affect a refinery in a well defined period of time.
It is used in budget, monthly operating plan, crude selection, new
units implementation feasibility study, incident evaluation, etc.
Ppm
Parts per million. Typically used to designate amount of metals,
sulphur or other impurities in refined oil products.
Romanian terminology: Parti pe million
Production cycle crack
Production cycle crack represents the difference between current
product market price and Urals market price at the beginning of the
production cycle (25 calendar days back).
Production cycle crack formula: Product price (t0) Crude price (t-25)
Romanian terminology: Crack al ciclului de productie
Refinery cracking processes:
Catalytic Reforming process: (Reformare Catalitica)
Catalytic

process

on

dehydrogenation

(Platinum/Rhenium) forming aromatic rings and hydrogen.

catalysts

This process is the main hydrogen producer from refinery,


resulting also LPG and auto gasoline component.
Catalytic cracking: (Cracare catalitica)
Cracking

using

catalysts

to

enhance

molecule

breaking,

particularly in the production of high-octane gasoline.


Hydrocracking: (Hidrocracare)
While thermal and catalytic cracking produce shorter hydrocarbon
molecules

largely

by

disposing

of

the

excess

carbon

atoms,

hydrocracking inserts hydrogen atoms to achieve the same effect.


Steam cracking: (Piroliza)
A petrochemical process which produces olefins, particularly
ethylene, and, in some cases, aromatics. Similar to thermal cracking.
Delayed Coker: (Cocsare Intarziata)
Thermal cracking of viscous vacuum residues to produce gases,
gasoline, light and heavy gasoil and coke.
Visbreaking: (Cracare termica)
Thermal cracking of viscous crude residues to make fuel oil.
Refinery capacity
Represents the sum of reported atmospheric crude distillation and
condensate splitting capacity.
Petromidia:
YEAR 2007: Refinery Capacity = 3,827,377 mt
Romanian terminology: Capacitate
Refinery Types
Topping
Crude is a mixture of petroleum products. The topping refinery
just separates the crude into its constituent petroleum products by

10

distillation,

known

as

Atmospheric

Distillation.

Topping

Refinery

produces naphtha but no gasoline.


Hydroskimming
The hydroskimming refinery is defined as a refinery equipped with
Atmospheric Distillation, naphtha reforming and necessary treating
processes.
Hydroskimming refinery is more complex than a topping refinery
and it produces gasoline.
Hydroskimming

refinery

produces

surplus

of

fuel

with

unattractive price and demand.


Cracking
The cracking refinery is, in addition to the above, equipped with
vacuum distillation and catalytic cracking.
The cracking refinery adds one more level of complexity to the
hydroskimming refinery by reducing fuel oil by conversion to light
distillates and middle distillates.
Coking
The coking refinery refers to the one which is equipped to process
the vacuum residue into high value products using the Delayed Coking
Process.
The coking refinery adds further complexity to the cracking
refinery by high conversion of fuel oil into distillates and petroleum
coke.
Catalytic Cracking, Coking and other such conversion units are
referred to as secondary processing units.
The Nelson Complexity Index, captures the proportion of the
secondary conversion unit capacities relative to the primary distillation
or topping capacity.
The Nelson Complexity Index typically varies from about 2 for

11

Hydroskimming refineries, to about 5 for the Cracking refineries and


over 9 for the Coking refineries.
Refineries, with high Nelson Complexity Index have the necessary
flexibility in processing a wide variety of crudes and are capable of
achieving higher value addition.

Refinery run
Maximum refinery capacity.
Petromidia:
Refinery run = maximum mt crude oil per day*Utilized available
time
YEAR 2007: Refinery run = 10,427*352 = 3,670,281 mt
Romanian terminology:
Refining margin
Refining margins are the difference in value between the products
produced by a refinery and the value of the crude oil used to produce
them.
Refining margin formula = Product yields*Refinery gate prices
(Operating cost+Crude cost)
Benchmark refinery margins are margin indicators calculated for a
specific market and refinery configuration. (cracking, hydroskimming)
Mediterranean Urals Cracking Refinery margin is calculated using
Urals Med crude and a specific yield on a cracking refinery while the
Rotterdam Brent Topping Refinery margin is calculated using Brent Dtd
NWE crude, specific yield on a topping refinery.
Petromidia:
GROSS REFINERY MARGIN (,000$)= Total Finished Products (EXW
Midia) + Unfinished Products - Crude&Other Feedstock (EXW Midia)
Operating Costs

12

GROSS REFINERY MARGIN ($/feedstock bbl) = GROSS REFINERY


MARGIN ($)/ feedstock bbl
Year 2003:
Petromidia Refinery Margin = $4.18/bbl
Urals Med Cracking Benchmark= $3.67/bbl
Romanian terminology: Marja de rafinare
RON
A measure of the detonative quality of gasoline, or otherwise
expressed its tendency to cause "engine knock." The higher the octane
number, the higher the resistance to engine knock.
Octane numbers come in two forms: Research octane number
reflects fuel performance under moderate driving conditions, while the
tests for motor octane number reflect high speed driving conditions.
Tests for both numbers are in fact performed in the laboratory.
Throughput
The volume of crude or product flowing through a pipeline or
processed by a concentrator etc. Yearly refinery throuput is the total
quantity of feedstock that was processed.
Formula: Refinery Throughputs = Crude Oil + Other Feedstock
Petromidia:
Year 2007: Refinery Throughputs = 3,670,281 + 157,096=
3,827,377 mt
Romanian terminology: Supus
Unfinished Products
Partially

complete

work

in

process;

partially

manufactured

products.
Type:
Unfinished Type I (90%): PLT Reformate, FCC Gasoline,
Hydrotreated Kerosene, Hydrotreated Gasoil.

13

Unfinished Type II (75%): Straight Run Gasoil, DCK Gasoil,


Vacuum Distillate, Hydrotreated Vacuum Distillate
Unfinished Type III (60%)= Vacuum Residue, SR Gasoline,
NHT Gasoline, iC5, iC4, nC4, etc.
Romanian terminology: Semifabricate
Turnaround
A refinery or petrochemical plant is said to be "in turnaround"
when it is taken out of service of maintenance, usually planned.
Romanian terminology: Revizie - oprire
White products
Gasoline, naphtha, kerosine and gas oil, i.e. products from the
high or light end of the distillation process.
Petromidia:
GASOLINE
Natural gasoline
Unleaded Gasoline
Gasoline for chem ical use
JET FUEL
DIESEL FUEL
Diesel Fuel
Heating Oil
Slurry
LIGHT FUEL OIL
GASES
PROPYLENE
LIQUIFIED PETROLEUM GAS

30.75
3.72
23.65
3.37
2.98
36.49
35.39
0.86
0.25
0.78
4.52
2.12
4.26

Romanian terminology: Produse albe


Yield
The percentages of products (gasoline, jet fuel, kerosene, gas oil,
distillates, residual fuel oil, lubricating oil and solid products) that a
refinery can produce from a single barrel of feedstock.

14

Yield formula = Product quantity/ Total feedstock quantity *100


2008

TOTAL FEEDSTOCK :
CRUDE OIL/UNIT
OTHER FEEDSTOCK :
FINISHED PRODUCTS:
GASOLINE
JET FUEL
DIESEL FUEL
LIGHT FUEL OIL
FUEL OIL
VGO
GASES
PROPYLENE
LIQUIFIED PETROLEUM GAS
PETROLEUM COKE
SULPHUR
TOTAL UNFINISHED PRODUCTS:

100
97.05
2.95
97.67
30.75
2.98
36.49
0.78
2.98
5.46
4.52
2.12
4.26
6.46
0.87
0.00

Petromidia:
Romanian terminology: Randament
Utilities
The generic term for the refinery plants and units that are not
directly connected with the manufacture of products (e.g. steam
generation, water treatment, power consumed, etc.)
Romanian terminology: Utilitati

Maintenance
Routine repairs needed throughout the life of a well, usually
required more for oil than for gas wells.
Romanian terminology: Mentenanta

15

Vega refinery terminology

Atmospheric distillation unit (DA)


The device is meant for processing type A3, B, C crude oil, in
order to obtain semifinished products: DA gas, white spirit, petroleum,
gas oil, fuel oil.
Romanian terminology: DA
Vacuum distillation unit (DV)
The vacuum distilation unit is meant for processing DA fuel oil or
Heavy fuel oil max. 1% sulphur in order to obtain raw materials for
catalytic cracking (VGO) and manufacturing Bitumen Unit.
Romanian terminology: DV
The Normal Hexane Unit
The unit is meant for obtaining n-hexane, solvent used in the
process of polymerization olefins and refined edible oils or other types
of extraction gasoline. The raw materials are C5-C6 Cut and Raffinate
(from RR-Midia).
Romanian terminology:Instalatie Hexan
Rectification Unit
The unit is meant for obtaining extraction gasoline with various
distillation limits and white spirit, products used as solvents in chemical,
petrochemical and food industry.
The raw materials are C5-C6 Cut, Raffinate, Naphta gasoline and
Jet.
Romanian terminology:Instalatie Rectificare

16

Dearomatization Unit
The

unit

processes

extraction

gasoline

obtained

in

the

Rectification Unit in order to obtain ecological solvents.


The raw material is consist of extraction gasolines unfinished
obtained in Rectification unit.
For the aromatic hydrocarbons extraction is used NMP solvent.
The finished products are ecological solvents (SE 30-60, 35-80,
65-80, 70-95, 70-100, 80-110, 80-115, 100-150).
The name of the products is given by the distillation range.
To ensure the the proper quality of the products there is
especially

having

in

view

the

range

of

distillation,

aromatic

hydrocarbons content and the sulphur content.


Romanian terminology: Instalatie Dezaromatizare
Bitumen Unit
The unit processes the residual asphalt that result from DV Unit
for

obtaining

road

bitumen

and

special

types

of

bitumen

for

waterproofing works.
Since 2007 has been put into operation the department for
obtaining modified with polymers Bitumen (Eurobitumen).
Romanian terminology: Instalatie Bitum
Blending, finishing products Unit (AFP)
The unit is meant for obtaining finished products according to the
fabrication recipes and storing them in order to dispatch.
Romanian terminology: Instalatie AFPE

17

Rafination
The raw material is pumped from AFP Unit into the stirrers where
the homogenization level takes place, then follows the level of reactant
treatment, then washing level, finishing and decantation
Finished products are directed by pumping towards AFP unit and
loading rack and from here they are delivered.

Rompetrol Petrochemicals terminology

Polypropylene Plant
Polypropylene is obtained by propylene homo or copolymerisation
process using super-high activity or microspheric catalyst, under
temperature and pressure low conditions.
The

temperature

is

about

70-75C

and

pressure

10 - 12 kg/cm2G. The molecular weight is generally indicated by the


melt flow index and is controlled by changing the hydrogen flow rate.
The removal of heat of polymerization is done by combination of
jacket cooling and recycle system.

18

FLOW SHEET DESCRIPTION:


CAT.

CATALYST
PREPARATION

HEXANE

PROPYLENE

ETHYLENE

HYDROGEN
HEXANE

POLYMERIZATION
SLURRY

METHANOL
PROCESS WATER

DEZACTIVATION
AND WASHING

WET CAKE
DRYING GAS

ATACTIC SOLUTION

SOL. NaOH

DRYING

HEXANE
RECOVERY

POWDER

STABILIZERS

PELLETIZING
BLENDING

ATACTIC POLYMER

PACKING
PALLETIZING

2. Propane-Propylene splitter
Refinery FCC Propane-Propylene mixture (75%, 92%) is feeding
the

splitter. Purified propylene

(99.9%) is stored and used

Polypropylene plant and propane is sent back into the refinery.

19

in

Trading
II. Trading terminology
II.A. Market terminology
Arbitrage
The simultaneous purchase of a commodity/derivative in one
market and the sale of the same, or similar, commodity/derivative in
another market in order to exploit price differentials
Assessment
An assessment is the product of a market survey and the
application of strict methodological rules to determine the repeatable
tradable price range for a commodity during the assessed period.
Platts assessment typically aims to zero in on typical transactable
levels

by

discarding

unrepresentative

market

information

(out-of-market bids, offers and transactions), and the process differs in


this respect from indexation, which is an inclusive process, averaging all
available market information.
Platts produces indexes in highly liquid markets, for example
North American natural gas; and assessments in illiquid markets, such
as those for physical oil. Platts assessments typically are published as a
low-high range for each instrument.
Backwardation
A market where the price for nearby delivery is higher than for
further forward months. The opposite of backwardation is contango.

20

Bearish
Believing that a price will fall. Also describes a market that shows
signs of falling.
Brent blend
The most commonly traded North Sea crude oil. Brent has an API
of about 37.5. The blend is technically a mix of crude from the Shell UKoperated Brent field and the BP-operated Ninian field. The blend is,
however, commonly referred to simply as Brent.
Bullish
Believing that a price is going to rise.
Cash market
The physical market underlying a futures or options contract.
Contract price
Periodic (monthly/quarterly/annual) price agreed between sellers
and buyers of commodities for term business. Often abbreviated to CP.
Most oil contract prices are "floating", that is they are tied to spot
market assessments published by Platts or other market pricing
services rather than set at outright levels.
Crack spread
The simultaneous purchase or sale of crude against the sale or
purchase of refined petroleum products.
These spread differentials which represent refining margins are
normally quoted in dollars per barrel by converting the product prices
into dollars per barrel and subtracting the crude price.

21

Dated Brent
A rolling assessment that reflects the price of physical wet BrentForties-Oseberg, blended crudes from the North Sea Brent and Ninian
systems, and slated to load at the Sullom Voe Terminal, no less than
ten days forward.
Demurrage
Comes from the field of vessel chartering (notably voyage
chartering) and refers to the period during which the charterer remains
in possession of the vessel after the period of time normally given to
him to charge and discharge the cargo (lay time). By extension
Demurrage refers to the amount of money that the charterer will have
to pay to the shipowner for its extra use of the vessel. In commercial
shipping, demurrage is an ancillary cost that represents liquidated
damages for delays, occurs when the vessel is prevented from the
loading or discharging of cargo within the stipulated laytime.
Differential
The difference between two prices. A large and increasing
percentage of all oil transactions are effected on the basis of
differentials, also known as spreads, rather than outright flat prices.
Discount
An amount agreed between buyer and seller to be subtracted
from an existing benchmark.
Futures contract
An agreement to make or take delivery of a commodity at a fixed
date or strip of dates in the future, at a price agreed upon at the time of
dealing.

22

Heavy crude oil


Has an API gravity of less than 28 degrees. The lower the API
gravity, the heavier the oil.
Hedge
The reduction of risk by covering anticipated commitments at a
fixed price in the future through a futures or options contract. Buyers
and sellers can hedge
IPE
The International Petroleum Exchange in London. Brent and
Gasoil futures contracts are traded at the IPE and serve as indicators for
European crude and products market.
Light crude oil
Has API gravity higher than 33 degrees. The higher the API
gravity, the lighter the crude oil.
Mark-to-market
To revalue futures/option positions using current market prices to
determine profit/loss. The profit/loss can then be paid, collected or
simply tracked daily.
Mogas
Used in some markets (mainly US) as a substitute term for
gasoline.
NGL
Natural gas liquids. Can include ethane, propane, butane,
isobutane and natural gasoline/condensate.
Not to be confused with LNG, liquefied natural gas. LNG is
artificially liquefied methane, not the heavier fractions defined as NGLs.

23

NYMEX
New York Mercantile Exchange. Also known in the energy industry
as "the NY Merc".
Premium
An additional amount agreed between buyer and seller over and
above an existing benchmark. Also, the price paid by an option holder
to an option grantor.
Price reporters
Companies that assess prices of crude and products following
certain methodologies based on information about the deals (spot
market) performed over the day.
Industry participants use prices provided by price reporters as a
reference. The following are currently used within the industry:
Platts prices are most widely used in contracts in the oil
industry, as it was the first reporter to be established back in 1924.
Several changes in assessment methodology, crudes and products
reported have taken place over the last years.
Petroleum Argus focused initially on European product prices
but now has become a worldwide price reporter.
ICIS LOR produces crude and petrochemical price reports. ICIS
LOR prices are widely used in the petrochemical industry.
Reserves
The calculated quantity of hydrocarbons or minerals which can be
extracted profitably from a deposit, classified according to the level of
confidence that can be placed in the data. Standard classifications are:

24

Proven

reserves

Reserves

that

have

been

sampled

extensively, for example--in mining--by closely spaced diamond drill


holes or by underground working giving an accurate picture of size and
quality of reserves.
Also called measured reserves. In oil, proven reserves are an
estimate based on seismic and other exploratory data, linked to an
assessment of economic and operating viability.
Recoverable reserves In oil and gas, the portion of a fields
total estimate reserves that can actually be recovered from the field
using currently available technology. Recoverable reserve estimates are
dependent on factors such as reservoir pressure and the density of
strata.
Probable reserves Valuable mineralization not sampled
enough to estimate accurately the terms of tonnage and grade. Also
called indicated reserves.
Possible reserves Valuable mineralization not sampled enough
to estimate accurately its tonnage and grade, or even verify its
existence. Also called inferred reserves. In oil, possible reserves are an
estimate of reserves from an undrilled site or one that has not bee
seismically tested.
Sour/sweet crude
Definitions which describe the degree of a given crude's sulfur
content. Sour crudes are high in sulfur, sweet crudes are low.
Spot market
A market where goods are traded for immediate delivery.

25

Spread (options)
An option trade in which two or more open positions are
established in order to trade the differentials and offset risk.
Option spreads may use different strike prices and/or expiry
dates.
Spread-trading
Buying one instrument/commodity and selling another, with a
view to profiting from the change in the gap between the two markets.
II.B. Transport terminology
Barge
A vessel carrying oil, usually on rivers, containing between 8,000
and 50,000 bbl, or weighing 1,000 to 10,000 tonnes. In the US, barges
can be up to, and occasionally over, 100,000 bbl in capacity.
Barrel
A volumetric unit of measure for crude oil and petroleum
products. 1 barrel is 42 US gallons, 35 imperial gallons or 159 liters.
There are roughly 7.33 bbl of crude oil to a tonne, but the precise
conversion obviously depends on the specific gravity of the oil.
Bill of lading
Documentation legally demonstrating a cargo has been loaded.
The bill of lading is signed by the captain of the ship and the contract
supplier. Abbreviated as B/L.
CIF
Cost, insurance and freight charges for shipping products. CIF
prices include these charges.
DAF
Delivered At Frontier. A popular INCOTERM among eastern
European petrochemical producers. A different railway gauge means

26

product has to be transshipped before continuing on into Western


Europe.
Demurrage
The detention or delay of a vessel in loading or unloading beyond
the time agreed upon. Demurrage charges are usually incurred for any
delay.
EXW
EX Works. The seller minimizes his risks by making the goods
available at his on premises.
FAS
Free Alongside Ship. Product is sold when the goods in question
are placed on the quay alongside the vessel. FAS is often traded in the
US polymer export market.
FCA
Free Carrier. The rail and road freight equivalent of Free on
Board.

Free on Board
Usually abbreviated to FOB. FOB prices exclude all insurance and
freight charges. Most oil is sold either FOB (effectively priced at the
loading port) or CIF (effectively priced at the delivery port).
Laycan
The range of dates during which a ship will load.
Med
Market abbreviation for Mediterranean.

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NWE
Oil and petrochemicals market abbreviation for Northwest Europe.
P&C
Private and confidential. Used by commodities traders to describe
non-public transactions.
P/C
Part-cargo.
Tankers
Size is typically measured in deadweight tonnes (cargo capacity
for carrying water).
Here are tanker sizes and typical abbreviations (in deadweight
tonnes)
GP General Purpose

16,500 - 24,999

MR Medium Range

25,000 - 44,999

LR1 Large/Long Range

45,000 - 79,999

LR2 Large/Long Range

80,000 - 159,999

VLCC Very Large Crude Carrier

160,000 - 319,999

ULCC Ultra Large Crude Carrier

320,000 - 549,000

Also:
Handysize 35,000
Panamax 65,000
Aframax 80,000
Suezmax (Million barrel) 130,000
Capesize: Any vessel, usually carrying dry bulk cargoes, that is
too big to navigate the Panama or Suez Canals.

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Tonne
The

standard

abbreviation

is

mt.A

tonne,

or

metric

ton,

sometimes tautologically referred to as a metric tonne, is defined as the


weight of one cubic meter of water. Rough-and-ready barrel-tonne
conversion factor is 7.33 barrels of crude to one tonne, but obviously
depends on the specific gravity of the crude.
WTI
West Texas Intermediate crude oil. WTI crude is deemed to
be traded at Cushing, Oklahoma. Traders typically refer to the NYMEX
Light Sweet Crude futures contract as the WTI contract, although the
contract allows delivery of other grades.
III. Stockholders / Investors relation
III. A General terminology
Ask price
An indication of willingness to sell at a specific price.
Bid price
The price at which a buyer is prepared to buy.
III. B Indicators
Book value per share
Formula = Book value/ Number of shares outstanding
Number of shares : 17,463,510,000
Dividend yield
Formula = Dividend per share / Current market price per share
Dividend per share: 0
Current market price per share : 640

29

Dividend yield = 0/640 = 0


Earning per share (EPS)
Formula = Net income/ Number of issued shares
Net income: 9,387,032,000,000 ROL
Number of shares : 17,463,510,000
EPS= 9,387,032,000,000/17,463,510,000 =
Earning yield on common stock
Formula = Earning per share/ Current market price per share
Price-earning ratio (PER)
Formula = Market price of the stock/ Earning per share
Price to book ratio
Formula = Market price of the stock/ Book value per share
Breakeven:

Marked by or indicating a balance, especially

between investment and return.


n. In both senses also called break-even point.
The point, especially the level of sales of a good or service, at
which the return on investment is exactly equal to the amount invested.
The point at which the energy put into a system is equal with the
energy produced by that system: reaching breakeven in controlled
fusion reactions.

30

I.B. Costs
Petromidia:

Costs
A financial measurement of the resources used or given up to
achieve a stated purpose.
Romanian terminology: Cost

31

Fixed costs
Costs that remain constant in total amount over a wide range of
variations in the level of processing activity.
Romanian terminology: Costuri fixe
Variable costs
The total costs incurred to produce energy, excluding fixed costs
that are incurred regardless of whether the resource is operating.
Variable

costs

usually

include

fuel,

increased

maintenance

and

additional labor.
Romanian terminology: Costuri variabile
Manufacturing costs
The Costs incurred to produce or create a product. It includes
direct materials, direct labor, and manufacturing overhead costs.
Direct materials
Are materials that are: (1) included in finished products, (2) used
only in the manufacture of the product, and (3) clearly and easily
traceable to the product.
Direct labor
Is the cost of labor by employees actually working on materials to
convert them into finished products.
Manufacturing overhead
Includes all other manufacturing costs, except that are accounted
for as direct material and direct labor.

32

Prime costs
The sum of direct materials and direct labor costs.
Conversion costs
The sum of direct labor and manufacturing overhead costs.
Product costs
Are costs incurred in the manufacture of products.
Period costs
Are expensed in the period in which they are incurred.
Administrative costs
Non-manufacturing
administrative

functions

costs
and

that
various

include
staff

the

costs

departments

of

top

such

as

accounting, data processing, and personnel.


Crude oil cost
Is the price paid for a barrel of crude oil on the international
market .

Parts and Consumables


Consumables are those materials or components which are
depleted or require periodic replacement through normal use of the
instrument.
I.C. Stocks

33

Stock Levels

Crude, Product, Semifinished (daily, mo)

Quantity:

Total Stock

Free Stock (pompabil, liber la pompare)

Holding Stock

Technological Stock

Price:

Input Price

Mark-to-Market Price

Value:

Input Value

Mark-to-Market Value

Total StockP/L (,000$)

Crude Stock P/L ($/mt)

Products Stock P/L ($/mt)

I.D. Maintenance
Utilizare timp disponibil

Oprire planificata

Revizie planificata

Timp disponibil planificat (TDP)

Timp efectiv lucrat

Indice utilizare

Timp opriri neplanificate

Opriri realizate

Indice utilizare capital planificat

Fond de timp utilizat

TDP

34