Economic modelling
Fiscal regime modelling for the oil and gas industry
We have been developing models and performing valuations of oil and gas assets for over 20 years. Our clients trust our professional services heritage and rely on us to provide quality service in this complex arena.
PetroScope is our flagship model and is highly regarded by many financial institutions and oil and gas companies. It has proved an invaluable tool for:
- equity research;
- portfolio analysis;
- business development;
- merger and acquisition activity; and
- competitor analysis and benchmarking.
Developed in Microsoft Excel, it offers a robust framework with complete calculation transparency in an intuitive user-interface.
The fiscal terms of each model are thoroughly researched from oil and gas legislation and model contracts. In addition to building models we also provide comprehensive analysis of the fiscal, regulatory and contractual terms applicable to upstream petroleum activities in a given country.
How we can help
This architecture delivers powerful analytical features regardless of the fiscal regime in a consistent and familiar interface. Some of these tools include:
- asset screening and reporting;
- expected monetary value;
- sensitivity testing; and
- incremental analysis.
It is also possible to customise and integrate PetroScope into other third party risk analysis tools.
What we offer
We often support clients’:
- valuations of upstream oil and gas assets or companies within the context of transactions;
- company reorganisations;
- capital gains assessments; and
- disputes.
We are also regularly asked to review, contrast, and benchmark different regimes to assess their attractiveness to IOC’s, and/or ensure a fair economic return to the host government.
Our assignments can take a number of forms including customising
PetroScope to our clients’ requirements, working directly with a
client’s in-house model, or assisting clients in their scoping of
more complex upstream oil and gas economic models. Often, the driver for an
engagement originates from clients’ concerns regarding the suitability,
scalability, and transparency of their existing in-house models. We
adopt a consistent framework for all modelling engagements, which is
completely open, auditable, includes data handling capability,
documentation and support from a dedicated team of economic modellers.
