MOL GROUP Annual Report

GlossaryAverage production costTotal cost of lifting, gathering and processing of crude oil and natural gasBiofuelsBiofuels means liquid or gaseous fuel for transport produced from biomass, where “biomass” means the biodegradablefraction of products, waste and residues from biological origin from agriculture (including vegetal and animal substances),forestry and related industries including fisheries and aquaculture, as well as the biodegradable fraction of industrial andmunicipal waste.Boe (barrel of crude oil equivalent)Volume equivalent obtained after conversion of the heating value of gas to crude oil on the basis of its thermal quantity. Inits practical application, 1 boe is, in general, 6000 cubic feet (about 170 normal m3) of gas.BarrelAnglo-Saxon unit of measurement applied in the oil sector, one ton crude oil is nearly equal with 7-7,5 barrel. (Conversion rateapplied onto crude oil grades in Hungary is 7,55 bbl/ton).Brent type crude oilMix of North Sea crude oils whose quoted price is considered as a benchmark in the international crude oil market.Brent-Ural SpreadDifference between Brent and Ural crude oil’s international price. The price of Ural type crude oil is quoted in Rotterdam(FOB ROT) and Mediterran (CIF MED) region.CondensatesGeneral term for a group of liquid phase hydrocarbons in which light components dominate and which are extracted at thesurface by natural gas separation.Cogeneration plantCoal or natural gas fuelled power station that is suitable for the simultaneous generation of electric and thermal energy.Combined cycle gas turbine (CCGT)In a combined cycle gas turbine (CCGT) plant, a gas turbine generator generates electricity and the waste heat is used toproduce steam to generate additional electricity via a steam turbine; this last step enhances the efficiency of electricitygeneration (average net electric efficiency of new CCGTs is 58%).Commercial gas storageNatural gas industry activity, which aims to balance the volatilities in the seasonal natural gas supply and demand as well asbusiness transactions. In Hungary gas storage is an activity unbundled legally from natural gas trade operations, thus theownership right and operation of the infrastructure are separated from the title and right of disposal of natural gas stored insuch storage facilities.CompanyMOL Hungarian Oil and Gas Public Limited CompanyCrack SpreadDifference between product’s quoted price and crude oil price. The crack spread figures change according to global oil markettrends (like consumption seasonality, refinery supply, changes of stocks).CrackingCollective noun for operations/technologies aiming at production of a mixture of lighter hydrocarbons (having lower boilingpoint) by cracking longer carbon chains (through splitting carbon-carbon bonds) of heavier hydrocarbon molecules. Crackingcan be purely a thermal process as well as catalytic (in this case the cracking process promoted by using of catalysts). One ofthe most important method of the modern mineral oil processing, is a cracking process, promoted by using catalysts, at thetemperature of 480-540 ˚C, during which hard distillates and distillate residues are used to produce motor oil having goodquality, while other malleable gases arise.Distillation capacity utilisationThe utilisation of the primary distillation capacity of a refinery.DownstreamRefining and Marketing and RetailDry wellAn investigated borehole, which does not confirm the existence of a hydrocarbon site or is not able to profitably producecrude oil or natural gas.Enhanced oil recovery (EOR)Processes/technologies that can be used to recover more oil relative to the primary and secondary methods.FAME- Fatty acid methyl estherBiocomponent blended in dieselgasoilFCC- Fluid Catalytic Cracking plantFCC- Fluid Catalytic Cracking plantField developmentProcess of implementing underground and aboveground facilities necessary for the recovery of hydrocarbon reserves.Geothermal energyGeothermal energy is energy generated from heat stored in the earth, or the collection of absorbed heat derived fromunderground.Geothermal Power PlantGeothermal Power Plants are intended to utilize geothermal energy by producing power or heat out of it.Gross productionTotal quantity of crude oil and natural gas from hydrocarbon fields prior to the deduction of royalties.HDPEHigh density polyethyleneHydrocrackCracking of light or heavy gas oils or residue hydrocarbons, mixed with hydrogen, under high pressure and temperature, inthe presence of a catalyst, to produce light oils.Horizontal drilling Drilling at which horizontal or near horizontal range is created in the target layer following the verticalsection in order to expand the inflow cross-section.Hungarian Petroleum Product Association (MÁSZ)Association of the most important Hungarian crude oil product trading companies.Glossary244 MOL Group annual report 2010 245