P-Valoris

Project Economic Evaluation

This module helps you assess upstream oil and gas projects in a structured and efficient way. Enter field data, set fiscal terms, and generate financial metrics from projected cash flows. If you’re new to petroleum economics, you can review the reference guide on evaluating oil and gas projects.

Getting Started

For your first use, open the Getting Started guide in a separate dialog to follow each step more easily. In the sidebar, go to Help ➔ Getting Started, and keep this dialog open until you complete your first walkthrough.

Start a project evaluation – In the sidebar, select Tools ➔ New Evaluation, then complete the dialog form.
Follow the Evaluation Workflow – Use the Views section in the sidebar to go through the three main steps.

In each view, access Help ➔ How To from the sidebar for detailed guidance.

Field Inputs – Enter production forecasts, prices, capital expenditures (capex), and operating expenses (opex).
Fiscal Inputs – Define fiscal terms such as royalties, taxes, cost recovery rules, and production sharing agreements.
Main Results – Generate detailed cash flow projections and calculate key financial indicators (NPV, IRR, Payback Period, Government Take).

Economic Evaluation of Oil and Gas Projects

Economic evaluations are critical tools used by a wide range of stakeholders - including executives, engineers, analysts, and investors - to guide oil and gas investment decisions.
Typically conducted after extensive technical and financial analysis, the evaluation process consists of three main steps:

Step 1: Forecasting Key Inputs

This step involves generating annual projections for:

Production volumes from geologists and engineers, based on estimated reserves.
Oil and gas prices, often standardized within companies to ensure consistency.
Capital expenditures, categorized into exploration and development costs.
Operating expenses, including fixed/variable costs and transportation fees.
Working interest ownership, representing the company's stake in the project.

Step 2: Modeling the Fiscal System

Each country imposes its own fiscal terms through tax laws or production contracts. Two common frameworks include:

Royalty/Tax Systems (e.g., US, UK):
Companies own the reserves, sell the production, and pay royalties and taxes on profits.
Production-Sharing Contracts (e.g., Angola, Indonesia):
The government retains ownership of resources. Companies recover costs from production and share remaining profits with the state.

Step 3: Calculating Economic Indicators

Future cash flows are discounted to reflect the time value of money, producing key financial metrics:

Net Present Value (NPV): The sum of discounted future cash flows; a primary measure of project value.
Internal Rate of Return (IRR): The discount rate at which NPV equals zero.
Payback Period: Time required to recover initial capital investment.
Profitability Index: Ratio of total after-tax cash flows to capital invested; can be calculated with or without discounting.

These indicators, considered together, provide a comprehensive view of a project's economic viability.

Adapted from: Economic Evaluation of Oil and Gas Projects, JPT – The Way Ahead ↗

Available Evaluation(s)

No evaluation available

Field Inputs

Data chart

Chart Title

Data summary

Fiscal Inputs

Main Results

Generate detailed cash flow projections and calculate key financial indicators (Net Present Value, Internal Rate of Return, Payback Period, and Government Take) to make confident, informed investment decisions.

Check input data
Go to Tools ➔ Check Inputs to perform data quality control.
Set evaluation parameters
Open Tools ➔ Edit Parameters and complete the form (discount rate, Economic Limit Test method, etc.).

Once inputs and parameters are confirmed, the evaluation runs automatically and the main financial indicators are displayed.

If you modify any field or fiscal inputs, go to Tools ➔ Run Evaluation to refresh the results.

You can also perform scenario and sensitivity analyses to explore different outcomes. [upcoming features]

Evaluation Parameters

Economic Indicators

Revenue Breakdown Per Barrel (full cycle)

Take Statistics (full cycle)

Fiscal Analysis

Fiscal regimes define how oil and gas revenues are shared between governments and companies, shaping both project economics and national income. Well-structured regimes help attract investment and support development.

This module helps you evaluate fiscal terms, understand their impact on cash flows, and analyze how risks such as price volatility, cost overruns, and geological uncertainty are allocated between parties to ensure project viability.

Getting Started

For your first fiscal analysis, open the Getting Started guide in a separate dialog to follow each step more easily. In the sidebar, go to Help ➔ Getting Started, and keep this dialog open until you complete your analysis.

Start a fiscal analysis – In the sidebar, select Tools ➔ New Analysis, then complete the dialog form.
Follow the fiscal analysis workflow – Use the Views section in the sidebar to go through these main steps.

In each view, access Help ➔ How To from the sidebar for detailed guidance.

Set Base Inputs – Define the field data, fiscal terms, and discounting that will be used in all analyses.
Select an Analysis – Choose from available analyses such as sensitivity analysis, scenario analysis, government take analysis, or Monte Carlo simulations.
Run and Review – Generate results to assess the fiscal framework and compare outcomes under different assumptions.

Available Analyses

No analysis available

Analysis Base Inputs

Before running any fiscal analysis, you first need to define a set of base inputs. These inputs serve as the foundation for all calculations across the different analyses (sensitivity, scenario, government take, Monte Carlo, etc.).

They include:

Field data (production profile, prices, capital and operating costs).
Fiscal terms (royalties, taxes, profit-oil splits, bonuses, depreciation rules, etc.).
Evaluation parameters (discount rate, discount convention, valuation date, etc.).

By setting these base inputs once, the application ensures that all analyses are consistent, comparable, and traceable to the same underlying assumptions. You can think of them as the “reference case” against which all variations and alternative scenarios will be measured.

Setting Up Base Inputs

In the Tools section, create and manage Base Inputs — the key assumptions for your fiscal analysis.

New Base Inputs — Define Project Start Year, Project Lifetime, and Fiscal Regime.
Edit Field Data — Generate oil production, oil price, capex, and opex.
Edit Fiscal Terms — Set royalties, taxes, profit-oil splits, bonuses, and depreciation rules, etc.
Edit Parameters — Specify discount rate, discount convention, and valuation date, etc.
Check Inputs — Ensure all data are complete and valid before running any analysis.

Summary of provided data

1. Field Data

2. Fiscal Terms

3. Discount Settings

Sensitivity Analysis

This feature shows how individual fiscal terms—such as royalty rates or profit oil splits—affect project economics. It highlights the areas of greatest risk and uncertainty and helps identify terms that may become “deal-breakers” in negotiations. For example, if a small change in the profit oil split causes a sharp drop in NPV, that term requires close attention. Results are displayed in a tornado chart, a standard tool in economic analysis.

List of sensitivity analyses

No sensitivity analysis

Scenario Analysis

This feature enables the comparison of different fiscal frameworks to evaluate their economic impact. For companies, it helps identify which contractual terms yield the most favorable financial outcomes, such as the highest NPV. For governments, it supports the assessment of regimes that attract investment while maximizing state take.

By presenting a side-by-side comparison, the analysis makes it easy to see how variations in fiscal terms affect key metrics like NPV, IRR, and Government Take. It is a valuable tool for bid preparations and the negotiation of new contracts.

Fiscal Scenarios

Analysis Results

In this section

Fiscal Scenarios
Analysis Results

No scenario analysis

License Bidding

Explore comprehensive data on oil and gas licensing opportunities across Africa and Middle East. This module provides the key details investors need to assess, compare, and participate in active licensing rounds.

Licensing opportunities can be viewed on an interactive map or through a detailed listing. Users can explore, filter, and analyze opportunities to identify areas of interest.

Available Information Includes:

Bidding timelines and submission deadlines
Minimum investment requirements
Estimated reserves and resource potential
Block availability and licensing types
Contact details for each opportunity

Data Collection Approach

Collect oil and gas licensing data across Africa and Middle East from trusted public sources:

Scrape regulator and ministry portals for licensing documents.
Crawl Gazettes.Africa for invitation-to-tender notices.
Retrieve EITI license registers where available.

Coverage & Limitations

In some countries (e.g., DRC, Sudan, Mauritania, Chad), documents appear only during active rounds or through data rooms after registration. Others (e.g., Eritrea, South Sudan, Burundi, Rwanda) lack reliable public portals, with tenders often available only in hard copy or on request.

Interactive Map of License Bidding

Click a country name on the map or in the list on the left to view its bidding details.

List of countries

No country

Detailed Listing of License Bidding

Africa Middle East

14
countries

20
blocks / clusters

List of countries

No country

1 BOE	X	=	1 CF of NG
1 BBL	X	=	1 BTU
1 CF of NG	X	=	1 BOE
1 CF of NG	X	=	1 BTU

Oil, BOPD		Rate %
Up to	10 000	5.5
10 000	20 000	10
20 000	40 000	15
40 000	+	20

Three Modules

Project Evaluation

Fiscal Analysis

License Bidding

Experience It Yourself

Larger Screen Required

Project Economic Evaluation

Fiscal Analysis

License Bidding

Interactive Map of License Bidding

Detailed Listing of License Bidding