Glossary

LDLPE

Low-density linear polyethylene. A strong, clear film ideal for packaging.

Lease

The legal contract that specifies the terms and conditions of the business relationship between an oil company and the landowner or mineral rights holder on a particular tract.

Lease Operating Expenses

Production expenses and cost of sales excluding exploration expenses, depreciation, depletion, amortization and dry hole expenses.

License

An agreement in which a national government gives an oil company the rights to explore for and produce oil and/or gas in a designated area.

License Block

A section of continental shelf area in a particular national sector bounded by latitude and longitude lines, generally at one-degree intervals; a license block is usually sub-divided into smaller areas.

License Round

A stage in the allocation of offshore licenses in which a state places a number of specified areas in its sector on offer to oil companies at one time.

Light Crude

Crude oil with a high API gravity due to the presence of a high proportion of light hydrocarbon fractions.

Lightering

Unloading cargo from large marine tankers into smaller tankers that can enter shallow-water ports.

Lignite

Usually a dark brown substance that is the lowest rank of coal.

Linear programming

Sophisticated mathematical models used to simulate and optimise refining processes.

Liquefied Natural Gas (LNG)

Natural gas liquefied either by refrigeration or by pressure to facilitate storage or transportation.

Liquefied Petroleum Gas (LPG)

A mixture of butane, propane and other light hydrocarbons derived from refining crude oil. At normal temperatures it is a gas, but it can be cooled or subjected to pressure to facilitate storage and transportation.

Liquids

An aggregate of crude oil and natural gas liquids; also known as hydrocarbon liquids.

LLDPE

Linear low-density polyethylene. A strong, clear film ideal for packaging and one of the fastest-growing plastics lines in the world.