PetroScope is a comprehensive economic modelling solution for the oil and gas industry developed by Deloitte. It allows for discounted cash flow modelling of individual projects and portfolios. PetroScope models complex fiscal systems to analyze after-tax project economics under different economic scenarios and uncertainties. It has an intuitive interface and powerful reporting tools that enable easy comparison of multiple project analyses.

1. Petroleum Services Group
PetroScope®
An economic modelling
framework for oil and
gas analysts
comprehensive upstream fiscal modelling solution
available for the global oil and gas industry. It has
Managing spreadsheet risk with a robust been implemented as a corporate modelling
approach to economic modelling. solution for both large and small companies,
proving invaluable for equity research, portfolio
analysis, business development, mergers and
Project and portfolio economics acquisition activity, competitor analysis and
PetroScope is a discounted cash-flow modelling benchmarking.
framework, which can be supplied with individual
fiscal models for any hydrocarbon producing Fiscal system modelling
country. Developed in Microsoft Excel, it offers a The fiscal terms (bonuses, royalties, taxes,
robust framework, complete calculation production sharing contracts, participation
transparency and an intuitive user interface. agreements, etc.) are thoroughly researched from
legislation and model contracts, leveraging the
PetroScope’s economic dashboard
expertise of our global network of tax professionals.
This provides valuable support to our users when
analysing the detailed tax aspects of acquisitions
and divestitures.
Each model includes a summary document,
providing an overview of the fiscal system, allowing
users to easily understand the government take
aspects of their analysis. This summary is
extracted from our Fiscal and Regulatory Guides,
which are a comprehensive summary of the
regulatory, legal and fiscal arrangements pertaining
to hydrocarbon production in a particular regime.
PetroScope models the complexities of the fiscal
system allowing the after-tax economics of a project Intuitive user interface
to be analysed. The system is flexible, allowing The architecture delivers powerful and intuitive
users to view cash-flows in nominal or real terms functionality regardless of the tax regime, giving the
and in any currency. The interactive economic user a consistent and familiar interface. This
dashboard presents the results of the analysis, enables any user, regardless of experience, to
displaying economic indicators and charts. extract results quickly and with confidence.
Projects can also be consolidated at their The wizard-driven interface allows easy creation of
appropriate equity interests, allowing users to view new projects or editing of existing data. This
the economics of a portfolio, including any tax includes the ability to model production profiles, gas
effects. contracts, tariff payment contracts and variable
OPEX unit costs. Users are given the option of
Many oil and gas companies and financial using the wizard or interacting directly with the
institutions regard PetroScope as the most underlying spreadsheets.

2. PetroScope’s production wizard Incremental cash-flow chart
80.0 250
60.0 200
40.0 150
GBPmm
GBPmm
20.0 100
0.0 50
2006 2008 2010 2012 2014 2016
-20.0 0
-40.0 -50
-60.0 -100
Net Cashflow Incremental Net Cashflow
Cumulative Net Cashflow Incremental Cumul Cashflow
Exporting or linking data
The results can be easily exported from
Scenario analysis PetroScope, allowing output data to be used in
PetroScope can easily create “what if?” scenarios, other spreadsheet models. The flexibility of the
enabling users to view the project economics under system also means that other spreadsheets can be
various economic scenarios (e.g. several price easily linked into PetroScope.
decks) or to create several field data scenarios for
the same project. Support and customisation
The PetroScope helpline provides users with
EMV analysis assistance for queries relating to the model or
The probabilistic chance of success of a project can functionality. Training courses or more informal
be modelled via PetroScope’s Expected Monetary workshops can also be arranged.
Value (EMV) analysis, facilitating the analysis of
exploration economics. The open architecture of PetroScope allows
extensive flexibility for users, such as incorporating
Sensitivity analysis custom macros or integrating the product with other
PetroScope’s Sensitivity Analysis automatically applications, such as Monte Carlo simulation
varies input parameters within a specified range, software.
allowing users to quickly view the impact of
variability and uncertainty in production rates, In collaboration with the client, we can utilise our
prices and expenditure on the economics of a modelling skills to customise PetroScope to client-
project. Spider and tornado plots graphically specific requirements.
present the results.
Technology requirements
Screening and reporting PetroScope is a desktop application, which has
PetroScope’s powerful screening and reporting been designed to take advantage of the latest
tools can be used to present the results of analysis, features of Microsoft Excel. A minimum of Excel
allowing users to easily compare findings from 2000 is required.
multiple projects calculated under different
economic scenarios. This includes the option to
graphically present this data. Contact details:
For further information, please visit our website:
Incremental economics www.deloitte.com/petroleumservices
The economics of an incremental project can be
analysed by comparing the pre and post Alternatively, please contact:
incremental investment results. Rajkamal Srivastava rasrivastava@deloitte.co.uk +44 20 7007 4424
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