What is meant by Free On Board (FOB)?
A legal term related to ownership of goods once custody transfer has taken place. For FOB, ownership passes once the goods have been placed on board the transportation vessel.
What is meant by Front End Engineering?
All Field Engineering activities from opportunity inception until the production of the Project Specification.
What is meant by Front End Loading?
The emphasis placed on the activities in the first three phases of the Opportunity Realization Process that enables maximization of opportunity value.
What is meant by Function?
A group of similar discipline organizational units that support a common mission or purpose. Provides for pooling of expertise with supervision by personnel with the requisite knowledge.
What is meant by Functional Assets?
Business functions or services provided by equipment items or materials.
What is meant by Gamechanger contracts?
Research and technology contracts established to pursue new ideas.
What is meant by Gate(s)?
The point(s) in the Opportunity Realization Process where a key management decision must be made before an opportunity can progress. Otherwise known as (Milestone) Decision Checkpoint.
What is meant by General Facility System?
A facility system which does not have explicit characteristics defined and therefore is not represented by a specific entity within the model.
What is meant by Goodwill?
An attitude engendered in the local community that benefits an Operating Company in its dealings with individuals.
What is meant by Governance?
Influencing to achieve best commercial and technical practices.
What is meant by Group premise?
The planning assumptions and scenarios set by the Group to be used for the portfolio analysis.
What is meant by Grouped Equipment Item?
A combination of more than one item of equipment that is useful to consider as one unit.
What is meant by Grouped Facility?
A combination of more than one (Grouped) Facility, Facility System, or (Grouped) Equipment Items that is useful to consider as one unit.
What is meant by Grouped Tag Position?
The position within a Functional Asset which requires a certain combination of related functionalities provided for by a Grouped Equipment Item.
What is meant by Guideline?
A document which provides direction for managing a process or an activity.
What is meant by Handover?
The presentation of systems, with completed commissioning documentation and punch-lists as appropriate, for transfer of responsibility to the Operator and/or Owner.
What is meant by Hardware Item?
A physical component of a project, such as a jacket, a power plant, a pipeline, with defined physical and organizational interfaces with other hardware items.
What is meant by Hazard?
A set of conditions in the operation of a product or system with the potential for initiating an accident sequence.
What is meant by Hazard Identification Plan (HIP)?
A document that identifies possible hazards and the actions necessary to minimize risk.
What is meant by Hazard & Effects Management Process (HEMP)?
The management of a hazard (e.g. fire, erosion, toxic materials etc.) ensuring that activities and appropriate procedures are in place to identify, assess, control and recover from hazards.
What is meant by Hook-up?
Connection of new constructed plant and systems to utilities/feed stocks (also connection of instrumentation loops during precommissioning).
What is meant by Human Assets?
People employed directly or indirectly by the company to perform activities.
What is meant by Hydrotesting?
Hydraulic pressure testing of vessels, pipework and equipment to confirm mechanical integrity.
What is meant by Improve?
Part of the Process Management Cycle, where the process owner identifies, coordinates and implements changes which will make the process more effective and efficient in meeting corporate objectives and customer requirements.
What is meant by Information Assets?
Assets whose value is in the information they contain, not the intrinsic value of the medium through which that information is transmitted.
What is meant by Infrastructure?
The physical facilities required to support but not necessarily directly concerned with the Company’s production process, e.g. offices, camp housing, etc.
What is meant by Input?
Information, data, documentation or material etc. necessarily required to enable execution of an activity.
What is meant by Installation?
The totality of Functional Assets installed on a single support structure (offshore) or occupying a single land plot (onshore) performing several useful distinct but related functions for the EP business.
What is meant by Inspection?
An activity such as measuring, examining, testing or gauging one or more characteristics of an entity and comparing the results with specified requirements in order to establish whether conformity is achieved for each characteristic.
What is meant by Intangible Assets?
Assets for which the value, though real, cannot readily be measured, and for which the company frequently incurs costs.
What is meant by Integrated Planning?
The planning of a complete business process to an agreed time horizon to achieve its optimum effectiveness and efficiency consistent with known information and agreed assumptions.
What is meant by Integrated Production System?
The totality of Functional Assets that combine to gather one or more hydrocarbon flows from wells to sales point.
What is meant by Investment?
The money supplied by the company (acting as a shareholder) for the permanent employment by third parties in return for a specific entitlement such as a dividend payment.
What is meant by Job Description?
A document detailing the accountabilities of a position, it defines the responsibilities and authorities given to the incumbent of that position.
What is meant by Lessons Learned?
The learning by the team of what went well/badly and why during the Opportunity Realization Process.
What is meant by Licence Block?
A specific tract of the earth defined by areal extent and possibly depth (numeric depth range or stratigraphic units). The lease parcel is the basic unit of ownership for portions of the earth; it may be offshore or onshore.
What is meant by Life Cycle?
The totality of all phases in an opportunity’s life, from its inception until it is no longer existant.
What is meant by Line?
The organizational line of authority from MD down to individual staff. Each position within the chain of command is responsible for ensuring that their sub-ordinate(s) have the requisite authorities and resources available to enable them to perform their allocated tasks. Furthermore each position should ensure adequate controls are in place to ensure that tasks are performed as intended.
What is meant by Load-Out?
The processes of taking materials and equipment for construction offshore.
What is meant by Local Planning Premise?
The planning assumptions set by the OU and valid for the local business environment and including Stakeholder requirements, to be used in the portfolio analysis.
What is meant by Long Term Item?
A budget proposal or forecast for which approval still needs to be sought but which is included in the Company’s long-term capital forecast.
What is meant by Long-Term Budget?
Company budgets forecasting expenditure beyond firm budget proposals.
What is meant by Lump Sum (contract)?
With a lump sum contract, the Contractor is given defined starting and finishing points and undertakes to perform the whole of the specified work at a fixed price.
What is meant by Lump Sum with Bills-of-Quantities (contract)?
Bills-of-Quantities contracts are lump sum contracts with detailed bills of quantities forming a precise definition of the scope of work. The tendered rates provide the means of agreeing the cost of variations and a common basis for the comparison and analysis of competing Tenders.
What is meant by Life Cycle Costs?
The total cost of ownership of an item of material, taking into account all the costs of acquisition, personnel training, operation, maintenance, modification and disposal, for the purpose of making decisions on new or changed requirements and as a control mechanism in service, for existing and future items.
What is meant by Maintainability?
The ability of an item, under stated conditions of use to be retained in or restored to a state in which it can perform its required functions, when maintenance is performed under stated conditions and using prescribed procedures and resources.
Following article related to this article and must be read to understand all terms and abbreviations.
- Lecture#7 General Terms for Oil and Gas Engineers and Professionals
- Lecture#6 Offshore Oil and Gas Industry – Abbreviations and Acronyms
- Lecture#5 Oil and Gas Glossary of Terms
- Lecture#4 List of Abbreviations in oil and gas Exploration and Production
- Lecture#3 Oil and Gas Terms and Abbreviations
- Lecture#2 Terms Used in Oil and Gas Industry
- Lecture#1 Technical General Terms used in Plants, Oil & Gas Industry