Glossary

A

ADR
American depositary receipt
Alkaline-surfactant-polymer (ASP) flooding
Chemical technique for oil recovery enhancement at mature fields where a mixture of alkali, surfactant and polymers is injected into the reservoir
APG
Associated petroleum gas
Augmented reality
A technology that superimposes computer-generated data (images, video, text, graphics) on the content displayed by an electronic device, be it a smart phone or AR glasses. In production, it is leveraged to promptly receive information about equipment and its condition, simulate work processes, report failures, conduct employee training, and more. It also significantly reduces the number of errors and increases work efficiency

B

B2B
The exchange of products and services between businesses, rather than between businesses and consumers
B2C
The process of selling products and services directly to consumers who are the end-users of these products and services
Bps
Basis point

C

Cased borehole
Borehole section with casing pipes installed. Casing pipes are screwed on to each other or welded together to form a casing column
CGU
Cash-generating units
CIS
Commonwealth of Independent States (post-Soviet republics, with the exception of Latvia, Lithuania, Georgia and Estonia)
CNG
Compressed natural gas
Corporate culture
A system of shared values, attitudes, goals and principles of teamwork and workplace dispute settlement, common to all Company employees and based on corporate values
Corporate culture workshops
Employee workshops with participation of the Group’s executives set up to discuss “as is” and “to be” state of the Company’s corporate culture model and the initiatives required to build a more engaging working environment
CPI
Consumer price index

D

D&O
Liability insurance of directors and officers
DCU
Delayed coker unit

E

EAD
Electronic asset development
EBIT
Earnings before interest and taxes. This measure of a company’s financial performance stands in-between gross and net profit
EBITDA
Earnings before interest, taxes, depreciation and amortisation
ECA
Export credit agency
Engaging environment
A set of principles and processes that help employees reach their full potential, work relentlessly to develop and improve their performance, actively collaborate to address issues, and feel a sense of personal responsibility for their share of work and outcomes
Etalon
An operations management system based on an exemplary business model. The endeavours to deliver exemplary performance are typical of a mature company that has successfully navigated through developmental challenges
EURIBOR
Euro Interbank Offered Rate

F

FAR
Fatality accident rate

G

GDP
Gross domestic product
GRI
An internationally recognised sustainability reporting framework developed by the Global Reporting Initiative

H

Hierarchical management
A classical organisational model integrating top-down management guidance with down-top flow of information from personnel on the ground. It is based on stringent supervision, clear delineation of responsibilities, cumbersome processes and vertical hierarchy and is viewed as hardly effective in today’s world

I

IEA
International Energy Agency
IFRS
International Financial Reporting Standards
Industrial Internet of things
IIoT refers to interconnected sensors attached to physical assets and networked together with computers to enable efficient data collection and exchange. It is used for remote control of equipment and industrial automation, cutting down human intervention
IRMF
Integrated risk management framework

K

KPI
Key performance indicator

L

Lean production
An approach to management that focuses on continuous improvement and aims to eliminate all sorts of losses. It engages all employees in driving a flow of improvements
LIBOR
London Interbank Offered Rate
LPG
Liquefied petroleum gases
LTIFR
Lost time injury frequency rate

M

Management by objectives
Collective approach to formulating goals, setting the direction, and decision making inside the company. It ensures that the executives and employees share the same goals, understand their importance, and are able to assess their performance and facilitate improvements
MET
Mineral extraction tax
Mud pit
A facility designed for centralised collection, treatment and disposal of drilling waste

N

Network-based management
A modern management model based on flexible cross-functional teams capable of setting their own goals and making independent decisions. It relies on horizontal hierarchy, lifelong learning and personal responsibility for the outcomes. It is best for addressing complex challenges in a rapidly changing environment
NGL
Natural gas liquids
NIS
Naftna Industrija Srbije А.D., Novi Sad
NPP
Non-profit partnership
NPS
Net Promoter Score

O

Oe
Oil equivalent
OECD
Organisation for Economic Cooperation and Development
OMS
Operations management system
OPEC
Organization of the Petroleum Exporting Countries

P

PBB
Polymer-bitumen binders
PMB
Polymer modified bitumen used for road construction
Pp
Percentage point
Predictive analytics
Data analysis methods that aim to predict future behaviour of subjects and objects in order to drive better decisions
Predictive incident management
A fundamentally new approach to equipment maintenance and repair based on the analysis of digital data gathered from sensors to accurately predict wear and tear. It helps maximise maintenance efficiency and prevent accidents
PRMS
The Petroleum Resources Management System. It is the most widely used one of its kind in the world, defining not only the degree of uncertainty in relation to discovering oil and gas, but also the economic feasibility of extracting hydrocarbons. The petroleum quantities are estimated based on the 3P scenario (proved, probable, possible)
Proppant / propping agent
Granular material designed to keep an induced hydraulic fracture open under ground pressure and thus enhance oil recovery

R

R&D
Research and development
RAS
Russian Accounting Standards
Refinery
Oil refinery
Regular management practices
Executive tools designed to improve efficiency and safety of production facilities. They rely on clearly defined algorithms and implementation principles and apply at all levels of company management. Regular management practices help embed the Company’s values and develop a cultural environment conducive to achieving its strategic goals
ROACE
Return on average capital employed, calculated as net profit (less dividends on shares) divided by the average number of ordinary shares

S

SEC
U.S. Securities and Exchange Commission
Seismic
Seismic survey

U

Underbalanced drilling
Drilling technique where the reservoir pressure is higher than the pressure in the wellbore. The pressure difference minimises formation damage and increases the rate of penetration and oil recovery rate
US GAAP
Generally Accepted Accounting Principles approved in the US
USA
United States of America

V

VAT
Value-added tax