ADR (American Depositary Receipts)

Trading certificates in the United States representing one or more shares of a foreign company. An American depositary bank issues ADRs against the deposit of the underlying shares, which are held by a custodian in the country of origin of these shares. Petrobras issued its ADRs in 2007, of which one ADR represents 2 underlying shares.

ANP (National Agency of Petroleum, Natural Gas and Biofuels)

The regulatory body of the oil and natural gas sector in Brazil. API – American Petroleum Institute.

API Scale from the American Petroleum Institute (°API)

An expression of the relative density of an oil or derivative. The API scale, measured in degrees, varies inversely with the relative density, that is, the higher the relative density, the lower the API scale. The API scale is higher when oil is lighter. Oils with API scales greater than 30 are considered light; between 22 and 30 are considered average; below 22 are considered heavy and oils with API scales equal to or less than 10 are considered extra-heavy oils. The higher the API scale, the higher the value of the oil on the market. The API density is a scale expressed in degrees and given in whole numbers. The scale of the ºAPI equation is = 141.5 / density at 60/60ºF – 131.5, where the density at 60/60ºF represents a number obtained from the relationship between the mass of a product and the corresponding same mass in water, both at 60ºF.

Associated Natural Gas

Natural gas produced with oil. Oil deposits are generally comprised of three phases: oil, gas and water. In this case, gas is obtained after a physical separation process of the liquid fraction from the oil. There is also the non-associated gas, which is produced from pure gas deposits. In this case, there is no need for a physical separation process during production. In both cases, however, once gas is produced and/or separated, it is processed before being sold in order to reach the required quality standards.

Atmospheric Distillation Unit

A physical process that separates the components of a liquid mixture according to their boiling points. In the distillation process, “in natura” oil is fractionated through heating. The lighter portions are separated as steam, while heavier fractions remain liquid.



Back Testing

A technique that basically consists of imputing historical data into a model to assess the accuracy of past responses.

Basic Petrochemical

These petrochemicals are divided into two groups: olefins (ethylene or ethylene, propane or propylene, butenes) and aromatics (benzenes, toluenes, xylenes). They are produced from different raw materials through a process known as cracking.


Barrel, equivalent to 0.159 m3.


An alternative renewable and biodegradable fuel, obtained from the chemical reaction of animal or vegetable oils mixed with alcohol and a catalyst (reaction known as transesterification). This fuel can also be obtained by the cracking and esterification processes.


A small location in a sedimentary basin where oil and natural gas exploration and production activities are carried out.


The acronym for Barrels of Oil Equivalent. Typically used to express oil and natural gas volumes in the same measurement unit (barrels) by converting 1,000 m3 of gas to 1 m3 of oil. 1 m3 of oil = 6.289941 barrels of oil.


The acronym for Barrels of Oil Equivalent Per Day.


Fixed income bonds issued by companies, banks or governments. A bond is a debt certificate in which the issuer commits to pay a specific amount of interest at predetermined dates over a period of time, in addition to also paying the principal amount of the debt on the maturity date.


The acronym for Barrels Per Day.


The acronym for Generally Accepted Accounting Principles in Brazil.


A mixture of oils produced in the North Sea, from the Brent and Ninian oil systems, with an API grade of 39.4º and a sulfur content of 0.34%.

BS 8800

A standard that specifies the requirements for occupational health and safety management systems, also aiming to certify these systems.

BSC (Balanced Scorecard)

Described by Kaplan and Norton, it is more than just a tactical or operational measuring system. It consists of an explicit strategy and vision based on four perspectives: financial, customer, process, and learning and knowledge. Strategic objectives, measures, specific goals and action plans are formulated for each perspective.


A fuel used to supply vessels.

Business to Business

Companies that sell products or provide services to others.



Carbon Market

A regulated trading system among companies or other institutions, for credits that correspond to certified reductions in greenhouse gas emissions, aimed at facilitating the corporate, regional, national or global goals to be achieved for the reduction of these gas emissions.

Catalytic Cracking

A refining process that converts heavy distilled oils into lighter fractions that have greater commercial value, such as gasoline, liquefied petroleum gas (LPG) and naphtha.

Catalytic Cracking Unit

A refining process that converts heavy distilled oils into lighter fractions that have greater commercial value, such as gasoline, liquefied petroleum gas (LPG) and naphtha.


A substance that accelerates or delays a chemical reaction, but does not undergo any permanent chemical change in this process.


A flat curve on a wire that is suspended by its own weight.

Certificate of Deposits (Certificado de Depósito Interfinanceiro – CDI)

A security used to back loan transactions between financial institutions.


The simultaneous generation of electricity and thermal energy (heat/steam process), through the sequential and efficient use of energy volumes from the same source. This increases the thermal efficiency of the thermodynamic system as a whole.

Co-Generation with a Combined Cycle

Consists of a mixture between two types of power generation. It is used when the demand for steam and hot water is lower than the production capacity of thermal energy in the simple cycle. In this case, in addition to producing steam and hot water, the plant also produces electrical energy deriving from steam.

Combined Cycle

A cycle resulting from gas and steam turbines operating with the same fuel, which is natural gas. The gas turbine generates energy and the exhaust gases from the turbine (hot) are used to generate steam in a recovery boiler. This steam triggers the steam turbine to produce more electricity. This process will be applied in most thermoelectric plants when all construction phases are completed.


A physical asset, typically produced in agriculture, mining or through industrial processes, that is normally subject to quality or standardization classifications and is used in commercial transactions.

Completion of Wells

When wells are completed for production, they must receive a steel tube coating. For such, a layer of cement is placed around the well to prevent undesirable fluids to enter the well and also to prevent its walls from collapsing. Following, a special cannon is sent down the inside of the lining and, triggered from the surface, causes perforations in the steel and cement structure, opening holes in the areas that carry oil or gas, allowing these fluids to flow into the well. Another pipe, with a smaller diameter (production column), is introduced into the well to bring the fluids to the surface. Then, a set of valves known as the “Christmas Tree” is installed at the mouth of the well to control production.


A liquid obtained in the standard natural gas field separation process that is kept in a liquid phase under normal pressure and temperature conditions.

Conference Call

A call held with analysts, institutional investors and individual investors during the period in which the Company reports its quarterly financial results. The call must also include information on the Company’s future outlook.

Content of Local Goods

A percentage achieved by dividing: (i) the difference between the total sale value of goods (excluding IPI and ICMS taxes) and the amount of imported items included in the goods, and; (ii) the final total sale value of the goods (excluding IPI and ICMS taxes).

Corporate Governance

A relationship between economic agents (shareholders, executives, directors) with the ability to influence and/or determine the direction and performance of a company. Good corporate governance ensures equity, transparency and responsibility for the results.


A quantitative relationship between two variables that, although they have some connection between them, does not guarantee the existence of a functional dependency.

Crude Oil

The oil that enters a process plant for the first time.

Cost Insurance and Freight (CIF)

Cost of goods, including insurance and freight costs. The exporter shall be responsible for paying the costs and freight required to deliver the goods to the port of destination.



Delayed Coking

A more severe form of thermal cracking that transforms vacuum residue into lighter products, as well as into coke.

Delayed Coking Unit (Unidade de Coqueamento Retardado – UCR)

A more severe form of thermal cracking that transforms vacuum residue into lighter products, as well as into coke.


The accumulation of oil, or mineral deposit, that have been already identified by direct or indirect research methods but have not yet been dimensioned or assessed economically.


A contract or security whose value is linked to the price variation of an underlying security, instrument or index. It can be used as a hedge instrument.


The operating (startup of operations) of a thermoelectric plant (UTE) that begins to generate electric energy. “Dispatching a thermal plant” means putting it into operation to produce electricity. Currently, in Brazil, due to its hydroelectric “base”, thermal plants only “dispatch” during periods of peak in consumption (when hydroelectric generation is not enough to cover demand), when there is low hydrology (little rain) or whenever required by the National Electric System Operator (ONS) to stabilize the system.

Dow Jones Sustainability Index (DJSI)

A theoretical portfolio comprised of shares of companies listed on the New York Stock Exchange that have the best performances in terms of corporate sustainability. This is considered the most relevant sustainability index in the world and is used as an analytical parameter by socially and environmentally responsible investors.


A term that essentially defines crude oil refining activities, as well as the treatment of natural gas and the transportation, commercialization, and distribution of derivatives.




The acronym for Earnings Before Interest, Taxes, Depreciation and Amortization expenses.

EBITDA (Earnings Before Interest, Taxes, Depreciation & Amortization Expenses)

The acronym for Earnings Before Interest, Taxes, Depreciation and Amortization expenses.


EBITDA ÷ Net Revenue


The acronym for Exploration and Production of oil and natural gas.


This type of commerce is characterized by transactions made in the Cyberspace environment. The relationship between parties is carried out digitally and, therefore, in a virtual format. The products or services are offered through digital and multimedia, the main vehicles being: CD-ROM, kiosks, BBS and Internet. It is also known as electronic commerce.

Engineering, Procurement and Construction (EPC)

Plans, purchases and constructs.

Equity Value

The company’s net equity amount.


An electronic process (via Internet) for the purchase of materials and services.


Comprised by two carbon atoms, five hydrogen atoms and one hydroxyl (C2H5OH) and is obtained, in Brazil, through the fermentation process of sugarcane juice. It is used as fuel in Otto cycle engines, specifically in the road transport sector.

Ethene or Ethylene

A basic petrochemical product from the light olefin (C2H4) family, produced from naphtha or ethane.

90º Evaluation

A methodology that evaluates skills and performance through self-assessments, evaluations of immediate managers, and internal clients.

360º Evaluation

A methodology that evaluates skills and performance through self-assessments, evaluations of immediate managers, internal clients, managers at the same hierarchical levels, and team work.

Exhibit IV

An integral part of Resolution 1,832 issued by the National Monetary Council, which regulates foreign investments in the Brazilian capital market.

Exploratory Success Index

The number of exploratory wells with commercial oil and/or gas in relation to the total number of exploratory wells drilled and assessed in the current year.




The process of partially or totaling acquiring concession rights held by another company. In a single negotiation process, the company acquiring the concession rights is in the farm-in position and the company selling the concession rights is in the farm-out position.

FCC Coke

A product that is placed on the surface of the catalyst organs resulting from the degradation of diesel in Catalytic Cracking Units. It is then burned in the catalyst’s continuous regeneration process, creating energy to heat load and generate steam.


An area that produces oil or natural gas by through a continuous reservoir, or from more than one reservoir, at different depths and by using installations and equipment that are intended for production.

FOB (Free on Board)

The sale price of goods plus all exporting expenses required until they are offered to the market.

FPSO (Floating, Production, Storage & Offloading)

A floating, production, storage and offloading oil unit built on a vessel.

FSO (Floating, Storage & Offloading)

A floating, storage and offloading oil unit built on a vessel.

Fuel Oil

The heavier fractions resulting from the atmospheric distillation of oil. Widely used as industrial fuel in boilers, ovens, etc.




Electric machines that transform mechanical energy into electrical energy.

Gross Margin

Gross Profit ÷ Net Revenue




A position, or combination of financial positions, that contribute to reducing certain types of risks.

Hydrotreating Units for Unstable Streams

These units produce low-sulfur diesel from direct distillation streams and from delayed oil coking units.




The acronym for the Brazilian Institute of Environment and Renewable Natural Resources.

Ibovespa (Bovespa Index)

A price variation indicator for a theoretical portfolio of shares defined periodically by the São Paulo Stock Exchange.

IBRX (Brazil Index)

A price index that measures the return of a theoretical portfolio comprised by 100 of the most traded shares on the Bovespa, in terms of number of trades and financial volume. These shares are weighted in the index portfolio according to their respective number of shares available for trading on the market.

IGC (Differentiated Corporate Governance Index)

This index is calculated by the São Paulo Stock Exchange and measures the performance of a theoretical portfolio comprised of companies with good levels of corporate governance.


The acronym for the General Market Price Index, calculated and published by Fundação Getulio Vargas on a monthly basis. This is one of the price variation indicators adopted as an inflation measure in the domestic economy.

Installed Capacity

The processing capacity of a unit, authorized by the ANP.

Investment Grade

A corporate risk level considered to be low and, therefore, its securities can be acquired by more conservative investors. This level is of risk is known as Investment Grade.

ISO 14001

An international standard that is developed and managed by the International Organization for Standardization, which specifies the requirements for environmental management systems and also aims at the certification of these systems.




Petrobras supplies gas to the thermal plant in exchange for energy.

Linear Alkylbenzene

Used to manufacture biodegradable detergents.

Liquid Natural Gas (LNG)

The portion of natural gas that is found in liquid phase under certain pressure and surface temperature conditions, obtained in the field separation processes, at natural gas processing units or in gas pipeline transfer operations.

Liquefied Natural Gas (LNG)

A process in which natural gas is cooled to temperatures below 160 degrees Celsius for it to be transferred and stored as a liquid.

Liquefied Petroleum Gas (LPG)

A mixture of hydrocarbons with high steam pressure obtained from natural gas in special process units and maintained in a liquid phase under special surface storage conditions.

Load (Total) Processed

Total crude oil, added to the reprocessing of streams and intermediate derivatives, processed in the distillation plants.



Market Cap

The market value of a company measured by the price of its shares on the market by using the formula: share price x number of shares.

Market Share

A portion or percentage of the market.


A term used to define the word market, from a marketing point of view. Within digital marketing, this term is used to differentiate the physical market (marketplace) from the virtual market (marketspace).

Merchant Plants

Plants that, in general, are focused on producing energy for the spot market. In this type of operation, certain natural gas supply contracts have clauses that determine profits and losses to be distributed above what was previously established.


Also known as methyl alcohol, which can be produced from coal coke, naphtha and natural gas (methane).




A petroleum derivative used mainly as raw material for the petrochemical industry to produce ethylene and propylene, in addition to other liquid fractions, such as benzene, toluene and xylenes.

Natural Gas

All hydrocarbon, or mixture of hydrocarbons, that remains in gas form under normal atmospheric conditions and are extracted directly from petroleum or gas reservoirs, including wet, dry, residual and rare gases.

Natural Gasoline

A liquid form of natural gas whose steam pressure is halfway between condensed and liquefied petroleum gas, obtained through a compression, distillation and absorption process.

Net Margin

Gross Profit ÷ Net Revenue

New Frontiers

Basin areas or basins that are still relatively unexplored.



Occupational Disease

A disease developed or triggered due to certain work conditions or activities that are directly related to these conditions.


Located or operated at sea.

OHSAS 18001

A standard developed and managed by BSI Management Systems, which specifies the requirements for occupational health and safety management systems and also aims at the certification of these systems.


The portion of oil existing in the liquid phase under the original conditions of the reservoir and which remains liquid under pressure and surface temperature conditions.

Oil (or Petroleum)

Any liquid hydrocarbon in its natural state, such as crude and condensed oil.


Located or operated on land.

OPEC Reference Basket

Saharan Blend (Algeria), Mines (Indonesia), Bonny Light (Nigeria), Arab Light (Saudi Arabia), Dukhan (Qatar), BCF-17 (Venezuela), Iranian Heavy, Kuwait Crude, Es Sider (Libya), Murban (United Arab Emirates) and Basrah (Iraq).

Open or Simple Cycle

This cycle occurs when only gas turbines are operating and exhaust gases from the turbine are discarded while still hot, without being reused. This process will be used in the first operational phases of the thermoelectric plants.


The acronym for Organization of Petroleum Exporting Countries, which are: Algeria, Indonesia, Iran, Iraq, Kuwait, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela.

Operating Margin

Operating Profit ÷ Net Revenue


A type of derivative that allows the buyer the right to buy (call option) or sell (put option) a product or security at a certain price (strike price) at a future date.

Petroleum Coke

A solid, black and shiny product obtained by cracking heavy residues (coking). It burns without leaving ashes.


The acronym for Oil Spill Response Vessel, which are equipped with specifications that allow it to work at locations with oil stains and in environments where oil evaporation produces natural gas, which is why it is equipped with shielded electrical systems to prevent sparks to occur.


Corporate administration and support costs.




A type of vessel with the capacity to transport from 55,000 to 70,000 tons of oil or oil products and meets the passage restrictions of the Panama Canal.


The relation between distributed dividends and net income for the period. The payout index measures the percentage of net income to be distributed to the company’s shareholders.


A set of activities designed to fulfill contractual obligations of the exploration phase in a concession area, with each activity being quantitatively computed according to its nature and scope and its equivalent in work units (UT in Portuguese) and corresponding to the parameters of the area’s winning bid.

Pipeline Ends

A pipeline with one termination and several outlets.


A petrochemical product used to produce barrels, vases, packaging for films, plastics for wrapping fabric and small materials.


The generic designation for certain second generation petrochemical products, such as plastics, rubbers and synthetic fibers.


A petrochemical product with applications similar to high density polyethylene, such as films, beverage boxes, packaging, etc.

Power Purchase Agreement (PPA)

An agreement signed with predefined terms for the purchase and sale of energy.


Pre-salt is a sequence of sedimentary rocks formed over 100 million years ago in the geographical area created from the separation of the ancient Gondwana continent. More specifically, with the separation of the current American and African continents, which began nearly 150 million years ago. Great depressions were initially formed between these two continents, creating large lakes. In these areas, throughout millions of years, pre-salt oil-generating rocks were deposited. As all rivers on these separated continents flowed into lower regions, large volumes of organic matter were deposited. And, as the continents shifted, the organic material accumulating in this new area was being covered by the waters of the also newly formed Atlantic Ocean. Thus, a layer of salt began to form, which is currently up to 2 thousand meters thick. This layer of salt was deposited on the accumulated organic matter and was retained during millions of years, until thermochemical processes transformed it into hydrocarbons (oil and natural gas). The discoveries in the pre-salt area are among the most important in the entire world over the last decade. The pre-salt province is comprised of large accumulations of light oil that has excellent quality and a high commercial value.

Priority Thermoelectricity Program (Programa Prioritário de Termeletricidade – PPT)

The PPT was instituted by the Federal Government on February 24, 2000.

Processed Fresh Load

Total crude oil processed in the distillation plants.

Processed Load

Total volume processed in a refinery.

Propene or Propylene

A basic petrochemical produced from naphtha or propane, which serves as raw material for the production of polypropylene.

Proved Reserve

Oil and/or natural gas reserves that, according to geological and engineering data analysis, are estimated to be commercially recovered from discovered and assessed reservoirs, with a high degree of certainty and whose estimates consider current economic conditions, commonly viable operational methods and regulations established by Brazilian oil and tax laws.


The acronym for the official exchange rate disclosed by the Central Bank of Brazil.




Risk classification or assessment.

Real Estate Receivable Certificate (Certificado de Recebível Imobiliário – CRI)

Securities backed by real estate credits, issued exclusively by securitization companies, aimed at raising funds from institutional investors under terms with similar characteristics as real estate financing.

Realization Price

This price follows the system introduced by Ordinance 3/98, issued by the Ministry of Mines and Energy and the Ministry of Finance, and represents Petrobras’ net unit revenue from the sale, in the domestic market, of basic derivatives produced by its refineries and imports, whose prices are based on a parametric formula to keep them in line with the current prices in the international market.

Recoverable Volume

The volume of oil, under basic conditions, that can be obtained from a reservoir’s production, since the initial activities until its abandonment, according to the best alternative option identified by technical-economic studies carried out until the time of the assessment. Recoverable volume = original volume x recovery factor.

Remunerated Assignment

On September 3, 2010, Petrobras signed an agreement with the Brazilian Federal Government, under which we were granted the right to carry out research and production activities for oil, natural gas and other fluid hydrocarbons in specific areas of the pre-salt basin, subject to a maximum production of five BNBOE. The Remunerated Assignment Agreement was signed in accordance with the provisions of Law 12,276. The draft of the Remunerated Assignment Agreement was approved by Petrobras’ Board of Directors on September 1, 2010 and by CNPE on September 1, 2010, after a negotiation between Petrobras and the Brazilian Federal Government based on reports from independent experts obtained by Petrobras and the ANP and in compliance with an appraisal procedure, as required by Law 12,276.


A special customs regime for the export and import of goods in Brazil, whose main purpose is to exempt federal taxes on goods to be used in research and oil and natural gas mining activities at deposits.


Discovered oil and/or natural gas resources that are commercially recoverable as of a certain date.

Reserve Replacement Index (Índice de Reposição de Reserva – IRR)

The relation between the volume of reserves incorporated in the year and the total volume produced in the same year.


There are two types of residues: atmospheric (RAT), which is the fraction of oil from an atmospheric distillation unit whose distillation varies from 420 degrees Celsius upwards; and de-asphalting residues (asphalt), which are refined waste resulting from the extraction of light fractions of vacuum residue with paraffinic solvent (propane or butane).


The vertical portion of a flow line used for transporting oil/natural gas from the well to the platform.

ROA (Return on Total Assets)

Measures the efficient use of the company’s resources, dividing its net income during a period over total assets at the end of the same period.

Road Show

A presentation or event to disclose information on the company, or its products, to audiences in other locations.

ROCE (Return on Capital Employed)

Net Income – Financial Result (net of Income Tax and CSSL) ÷ Loans and Financings + Equity – Financial Investments.

ROE (Return on Equity)

Net income ÷ Shareholders’ Equity – Net Income for the period



Sale Leaseback

The sale of a property and the lease of the same property, by the seller, with a repurchase option.

SEC (Securities and Exchange Commission)

The regulatory and supervisory body of the North American capital markets, equivalent to the Brazilian Securities and Exchange Commission (CVM) in Brazil.

Second Generation Petrochemical Company

The companies that form a petrochemical complex are classified into 3 segments. The second generation companies process basic petrochemicals (ethylene, propene, benzene, etc.) to manufacture intermediate products (plastics, rubbers and synthetic fibers).

Signature Bonus

The amount offered by the winning bidder of an oil or natural gas concession proposal, which shall not be less than the minimum amount established by the ANP in the bidding notice and must be paid when the concession contract is signed.


A volatile liquid that has the power to dissolve another substance without changing its original chemical composition, forming a uniform mixture.


Society of Petroleum Engineers.

Spot Market

Markets in which lump sum transactions take place without long-term contracts.

Stress Testing

A technique used to evaluate how an asset portfolio or obligation responds to extreme variations in indexes and prices that have influence over such portfolio. The purpose of the stress test is to quantify the loss of a portfolio in a specific adverse market situation.


This type of vessel can transport approximately one million barrels of oil (roughly 130,000 to 150,000 tons), thus meeting the passage restrictions for the Suez Canal.

Sustainable Development

A development that is capable of meeting the needs of the current generation without compromising the ability to meet the needs of future generations.


An exchange contract for payment flows between two parties. A traditional oil swap consists of a contract in which a party buys for a fixed price and sells at a floating future price.



Taut Leg

A tension cable used for anchoring platforms.


The acronym for Teste de Longa Duração

in Portuguese, which stands for Long-Term Test.

Torpedo Anchor

A steel pipe that is used to anchor lines, risers and vessels. The anchor is launched from a support boat and reaches the bottom of the sea by means of its own weight, having already been tested and approved for clay soils and is expected to also be usable in non-compacted sandy soils. This project is patented by Petrobras and costs much less than conventional anchors.



UPGN (Unidade de Processamento de Gás Natural)

A natural gas processing unit.


Exploration and production activities.


The acronym for Generally Accepted Accounting Principles in the United States.



Value at Risk (VaR)

The monetary value of the maximum expected loss, under normal market conditions, according to the value of a position or set of financial positions, considering a certain degree of confidence and over a specific period.


A statistical measure of the tendency for a price or rate to change over time. This is normally measured by using a variance or standard deviation, in which the greater the volatility in prices, the higher its variation over an average amount.



WTI (West Texas Intermediate WTI)

API grade oil between 38 and 40, and approximately 0.3% of sulfur, whose daily price in the spot market reflects the barrel price delivered in Cushing, Oklahoma, in the United States.




The rate of return percentage paid as dividends on common or preferred shares.

Last updated on May 2, 2023.