Industry Definitions

A

• abandoned well: A well not in use because it was a dry hole originally, or because it has ceased to produce.
• abandonment and reclamation: The act of permanently stopping operations, removing facilities and restoring land to a productive state.
• access road: A temporary or permanent road that provides access to a pipeline right-of-way or to a facility, and which is not open to the general public.
• AGL: The abbreviation for Australian Gas Light Company Pty Ltd, one of the PNG LNG Project co-venturers.
• all-weather road: A paved or unpaved, i.e., gravel, road that is open to traffic all year.
• availability: Unit of measure for the actual time a facility, pipeline, or other equipment is capable of providing service, if called upon.

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• backfill: The fill material used to cover a completed pipeline. Adequate fill material is provided above and below the pipe to prevent damage caused by loose rock, abrasion, shifting or washouts.
• baseline: A surveyed condition that serves as a reference point to which later surveys are coordinated or correlated.
• bbl/d: The abbreviation for barrels per day.
• Bcf/d: The abbreviation for billion cubic feet per day.
• bedrock: The solid rock underlying soil or any other surface cover.
• benefits sharing agreement: The agreement between the PNG Government and landowners which will define how Project benefits are distributed.
• borrow site: An area that could be excavated to provide material, such as gravel or sand, to be used as fill elsewhere.
• BSA: The abbreviation for Benefits Sharing Agreement

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• casing: Steel pipe placed in an oil or gas well as drilling progresses, to prevent the wall of the hole from caving in during drilling, to prevent seepage of fluids, and to provide a means of extracting petroleum if the well is productive.
• CDOA: Co-ordinated Development and Operating Agreement (see definition for JOA)
• cf/d: The abbreviation for cubic feet per day.
• chain-and-bucketwheel trencher: A large excavating device that uses multiple buckets on a digging wheel.
• coating: pipe A material that forms a continuous film over the surface of a pipe, and which may be used internally or externally, to prevent corrosion damage.
• commissioning: The act of charging a system and doing checkouts to ensure that equipment functions safely before start-up.
• compression gas: The process of increasing the pressure on gas to reduce its volume or cause it to flow. Natural gas is usually compressed for pipeline transportation.
• compressor station: A facility containing equipment that is used to increase pressure to compress natural gas for transportation.
• Conceptual Engineering Phase: The phase of a project preceding the Preliminary Engineering Phase that includes evaluating a broad variety of development options and testing them against project development criteria, to determine a conceptual plan.
• Construction Phase: The phase of a project preceding the Operations Phase, during which project facilities and infrastructure are assembled and installed on their foundations, and connected and tested, to ensure that they operate as designed.
• consultation, public: The process of involving all affected parties in the design, planning and operation of a project. The process requires that the proponents give the parties to be consulted notice of the matter in sufficient form and detail to allow them to prepare their views on the matter. They are also given a reasonable amount of time to prepare their views and an opportunity to present their views to the proponents, who consider the views presented, fully and impartially.
• contaminant: A substance that makes another substance impure when mixed with it.
• co-venture: To undertake a business venture in partnership with another person or company
• co-venturers: The six organizations (ExxonMobil, Oil Search, Santos, Nippon Oil, AGL, MRDC) that are undertaking the PNG LNG Project.
  decommissioning The act of taking a processing plant or facility out of service and isolating equipment, to prepare for routine maintenance work, suspending or abandoning.

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• dehydration: The process of removing water or water vapour from gas or oil.
• demobilization: The process of moving people, supplies and equipment from the work site to another location.
• demographics: Of or relating to the dynamic balance of a population, especially with regard to its density and capacity for expansion or decline.
• Detailed Engineering Phase: The phase in a project preceding the Construction Phase that involves creating equipment specifications, detailed construction drawings and related engineering documents.
• development well: A well that is drilled after an exploration well has confirmed the presence of oil or gas in a formation.
• directional drilling: A drilling method in which the wellbore intentionally deviates from the vertical.
• domestic waste: Waste products, such as sewage, typically generated in camps.
• downhole: Pertaining to the wellbore.
• downstream: Refers to the section of the PNG LNG Project comprising the LNG plant and associated infrastructure at Section 152.
• drilling mud: The fluid circulated through the wellbore during rotary drilling.

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• EIA: The abbreviation for Environmental Impact Assessment.
• EIS: The abbreviation for Environmental Impact Statement.
• EPC Contracts: Engineering, Procurement and Construction contracts, are a common form of contract used to undertake construction works on large scale and complex oil and gas projects. Under an EPC Contract a contractor is obliged to deliver a complete facility to a developer who need only ’turn a key’ to start operating the facility, hence EPC Contracts are sometimes called ‘turnkey construction contracts’.
• environmental impact assessment: The process of evaluating the biophysical, social and economic effects of a proposed project.
• environmental impact statement: A report containing the environmental impact assessment.
• environmental management plan: A description of what will be done to minimize effects before, during and after project construction and operation. This includes protecting the environment and reducing effects from project activities.
• Esso Highlands: Wholly owned ExxonMobil affiliate company based in PNG and operator of the PNG LNG Project
• exploration well: A well that is drilled primarily to determine if oil or gas actually exists in a subsurface rock formation.
• ExxonMobil: Parent company of Esso Highlands www.exxonmobil.com

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• FEED: The abbreviation for Front End Engineering and Design
• flare system: An arrangement of piping and burners used to dispose of surplus combustible vapours by igniting them in the atmosphere.
  flow line A pipe through which gas travels from a well to processing equipment or to storage. The pipe is either buried, or installed above-ground.
• foundation fields:
• foundation volume:
• front-end engineering and design: The early planning phase of any industrial plant construction project. Decisions that are made at the start of the FEED phase influence subsequent design tasks and largely determine the usability, performance and cost-effectiveness of a plant or unit. These in turn have a direct effect on the safety and environmental compatibility of the plant or unit in subsequent operation.
  The FEED phase is typically divided into three task areas when setting up a new plant or unit, these include; Provisional decision on investment by the co-venturers; procurement and production of quotations by an EPC contractor; early phase of the basic engineering after the order has been awarded.

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• Gas Agreement: The agreement between the PNG Government and Project co-venturers which sets out the fiscal and regulatory terms by which the PNG LNG Project will be regulated throughout its lifetime.
• gas hydrate plug: A mixture of water and gas that forms a solid plug in a gas pipeline under certain conditions. Also known as hydrate.
  gas, natural A compressible mixture of hydrocarbons with a low specific gravity that occurs naturally in a gaseous form.
• gathering system: A system of pipelines, compressor stations, NGL and other related facilities that gather natural gas and associated NGLs from the supply region and transport it to the transmission pipeline system.
• glycol: A group of compounds, such as ethylene glycol and diethylene glycol, used to dehydrate gaseous or liquid hydrocarbons, to inhibit the formation of hydrates, or to cool fluids (liquid or gas), by acting as a heat transfer medium.
• GTE: The abbreviation for Gas-To-Electricity, the existing operating project at Hides gas field.
• grade, pipe: A designation of the pipe based on strength. Grade designation is nondimensional, but numerically equivalent to the specified minimum yield strength in megapascals. Grade 359 pipe material is equivalent to Grade X-52. Grade 550 pipe material is equivalent to Grade X-80.
• grading, pipeline: The process of constructing a work area to facilitate moving personnel, equipment and material onto and along a right-of-way. The process includes levelling, cutting and filling.
• granular resources: Material deposits that have a granulated surface or structure, such as gravel.
• ground truthing
• groundwater: The water within the earth that supplies water wells and springs.

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• habitat: The part of the physical environment in which a plant or animal lives.
• hazardous material: Any material that presents a potential for unwanted consequences to people, property and the environment.
• heritage resources: Any tangible or intangible product of human or natural history that has the potential to have scientific, educational, aesthetic, cultural, or social meaning or value for present or future generations.
• horizontal directional drilling: A river crossing technique used in pipeline construction in which the pipe is buried under the riverbed at depths much greater than conventional crossings. An inverted arc-shaped hole is drilled beneath the river and the preassembled pipeline is pulled through it.
• hydrate: A mixture of water and gas that forms a solid plug in a gas pipeline under certain conditions. Also known as gas hydrate plug.
• hydrocarbons: Organic compounds of hydrogen and carbon whose densities, boiling points, and freezing points increase as their molecular weights increase. Petroleum is a mixture of many different hydrocarbons.
• hydrogeology: The science dealing with the occurrence of ground water, its use and its functions in modifying the earth, primarily by erosion and deposition.
• hydrology: The science that treats the occurrence, circulation, distribution and properties of the waters of the earth and their reaction with the environment.

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• incident: A specific unplanned event or sequence of events that has an unwanted and unintended effect on people’s safety or health, on property or the environment, or on regulatory compliance.
• infill compression: A method of increasing capacity on a gas pipeline by installing compression facilities between initial compressor stations.
  infrastructure Basic facilities, such as transportation, communications, power supplies and buildings, which enable an organization, project or community to function.
• inlet separator: A vessel located at the entrance to a hydrocarbon facility that separates the incoming stream into different components, such as gas and liquids.
• integrated venture: An integrated venture is one where all components including upstream and downstream facilities are governed by a single joint operating agreement.

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• joint operating agreement: The joint operating agreement provides formal governance for the Project and incorporates all components including upstream, gas transportation pipeline, and liquefaction. It also sets out the project unitisation principles.
• joint venture: The Project which is covered by the terms of the joint operating agreement.

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• Land Use Permit: A permit issued by the designated managing body for a specific tract of land, allowing for an activity to be conducted on that land, as described in a land use application.
• landowner
• line pipe: Sections of pipe that can be welded together to form a pipeline.
• liquefied natural gas: Supercooled natural gas that is maintained as a liquid at –160°C. As this gas occupies 1/640th of its original volume, it is transportable by tanker.
• LNG: The abbreviation for liquefied natural gas.
• logistics: The activities associated with procuring, maintaining and transporting materials, equipment and personnel.
  m3/d The metric symbol for cubic metres per day.

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• Memorandum of Understanding
• mitigate: To cause to become less harsh or hostile.
• Mm3/d: The metric symbol for million cubic metres per day.
• mobilize: To move people or equipment to the work site.
• modularization: The process of assembling components into larger constructed modules in areas remote from the construction site.
• MOU: The abbreviation for Memorandum of Understanding.
• MRDC: Mineral Resources Development Corporation, the representative of landowner interests in the co-venture. www.mrdc.com.pg
• mud, drilling: The fluid circulated through the wellbore during rotary drilling.

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• natural gas: A compressible mixture of hydrocarbons with a low specific gravity that occurs naturally in a gaseous form.
• natural gas liquids: Hydrocarbons that are gaseous in the reservoir, but that will separate out in liquid form at the pressures and temperatures at which separators normally operate. The liquids consist of varying proportions of butane, propane, pentane and heavier fractions, with little or no methane or ethane.
• NGL: The abbreviation for natural gas liquid.

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• OGA: The abbreviation for the PNG Oil and Gas Act.
• OSL: The abbreviation for Oil Search Limited, one of the Project co-venturers and operator of the Kutubu Oil Project.
• Non-renewable resources: Resources, such as fossil fuels (oil, gas, coal) and minerals that occur naturally but cannot be replaced once removed.
• open-cut: A river crossing technique used in pipeline construction where a trench is cut into a river bed.
• Operations Phase: The phase of a project during which the pipeline and associated facilities are operated.
• organic matter: The fraction of a soil that contains plant and animal residues in various stages of decomposition.
• organic soil: Any soil consisting chiefly of, or containing at least 30% of, organic matter.

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• pad: The surface parts of a multiwell drilling or production site, including wells, buildings, piping and electrical facilities.
  petroleum development license
• permeability: The capacity of a porous rock, soil or sediment for transmitting a fluid without damage to the structure of the medium.
• PDL: The abbreviation for Petroleum Development License
• pigging: The act of pushing a device through a pipeline in order to physically clean deposits from the inner surface of the pipeline, or to remove liquids.
• pigging facilities: Pipeline in-line inspection and cleaning tool receivers and launchers.
• pipeline spread: The equipment and crew needed to build a pipeline.
• Preliminary Engineering Phase: The phase of a project preceding the Detailed Engineering Phase that includes establishing design standards and recommendations for initiating detailed design.
• procurement: Activities that must take place to obtain, on schedule and at optimum price, materials or services needed to construct a project.
  production The operation of bringing raw natural gas to the surface for processing.
• project impact area
• project proponents: The six organizations (ExxonMobil, Oil Search, Santos, Nippon Oil, AGL, MRDC) that are undertaking the PNG LNG Project.
• public consultation: The process of involving all affected parties in the design, planning and operation of a project. The process requires that the proponents give the parties to be consulted notice of the matter in sufficient form and detail to allow them to prepare their views on the matter. They are also given a reasonable amount of time to prepare their views and an opportunity to present their views to the proponents, who consider the views presented, fully and impartially.
• pumping station: A facility containing equipment that is used to increase the pressure of a liquid, such as NGL, for further transportation in a pipeline.

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• reclamation: The process of returning land to a productive state.
• regulators: The government departments or agencies that issue licences, permits or authorizations likely to be applied for in respect of a proposed project.
• reservoir: A subsurface, porous, permeable rock body containing a natural accumulation of oil or gas, or both.
  right-of-way The right of passage or of crossing over someone else's land. Also, an easement in lands belonging to others that is obtained by agreement or lawful appropriation for public or private use.
• rotary drilling: The method for drilling wells using a cutting bit attached to a revolving drill pipe.

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• Santos Santos Limited: one of the Project co-venturers www.santos.com.au
• Section 152: Site of the proposed LNG plant approximately 20km north-west of Port Moresby on the Gulf of Papua.
• seismic program: A study to obtain detailed information from earth vibrations that are produced naturally or artificially (as in geophysical prospecting).
• service rig: A hoist and engine, mounted on a wheel chassis with a self-erecting mast, that is used to service wells.
• shutdown: The act of stopping work temporarily or stopping a machine or piece of equipment in operation.
• SIA: The abbreviation for Social Impact Assessment.
• skid: A plank or roller on which a heavy object may be placed to facilitate moving.
• slug catcher: A vessel or series of pipes to collect liquids at the inlet of a compressor station.
• social mapping
• socio-economics: The study of social and economic factors.
• staging site: A location where equipment is stored, maintained or readied for work.
• start-up: The act of recommencing work or starting up machinery or equipment after a temporary shutdown or decommissioning.
• stockpile: A storage supply of something, such as line pipe or soil, to be used later.
• stringing: The process of delivering and distributing line pipe and joints where and when they are needed along the right-of-way. Pipe is strung so that the movement of livestock and vehicles is not impeded.
• subsurface rights: The rights to exploit oil, gas and mineral resources and to benefit from the development of resources and minerals found beneath the ground.
• surface rights: The rights to work on the surface of the land only, mineral rights being reserved.
  sustainable development Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

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• tariff: The terms and conditions under which the service of a pipeline is offered or provided, including the tolls, the rules and regulations, and the practices relating to specific services.
• Tcf: The abbreviation for trillion cubic feet.
• throughput: The amount of material put through a process or pipeline.
• topography: The configuration of a surface, including its relief and natural and artificial features.
• traditional harvest: Activities involving the harvest of traditional resources, such as hunting and trapping, fishing, gathering medicinal plants, and travelling to engage in these activities.
• traditional knowledge: Cultural knowledge that is based on direct observation or information passed on orally from other community members, developed from centuries of experience of living off the land.
• transmission pipeline: A system of pipelines, compressor stations and other related facilities that transport natural gas from the gathering system to the LNG plant.

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• upstream: Refers to all sections of the PNG LNG Project including production, gas conditioning and pipeline infrastructure but excluding the LNG Plant itself and associated infrastructure at Section 152.

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• wastewater: Water that is mostly vapour condensed from natural gas and any free water produced with the natural gas.
• water crossing: A location where a pipeline crosses a stream or a river.
• wellbore: The hole drilled by the bit in a well.
• wellhead: The equipment installed at the surface of the wellbore.
• workover: One or more of a variety of remedial operations performed on a producing oil or gas well, to try to increase production.
• workover rig: A portable rig used for working over a well.