New Software Release

Merak Fiscal Model Library 2021.1 Now Available

Wednesday, 30 June 2021

Product details

Merak Fiscal Model Library 2021.1 is a world-class collection of standardized fiscal models that support accurate economic results. The library contains more than 220 models covering most petroleum-producing countries. These customizable models can be used with the Peep module in the Merak planning, risk, and reserves software.

Merak Fiscal Model Library 2021.1 is available through an annual subscription, and custom fiscal-model solutions are available through a custom license. The easy installation format enables direct loading to machines equipped with the Peep module in Merak software, and any current Merak Fiscal Model Library models and add-ins.

Learn more about Merak Fiscal Model Library

Release updates

New models

The Merak Fiscal Model Library 2021.1 release includes the following new models.

Malaysia EPT PSC (2021)

The Malaysia EPT PSC (2021) model has been added to the library based on the law EPT PSC 2021 for shallow waters. The highlights of the model are: 

  • Under the EPT, to simplify PSC management, cost recovery and profit sharing is based on a single oil and gas pool instead of separate accounts for oil and gas. 
  • Cash payment to the Federal and State Governments is 10 per cent of the gross production. 
  • The cost recovery ceiling is fixed at 70 per cent of the gross production. 
  • Supplementary Payment (SP) and Threshold Volume (THV) provisions is no more allowed. 
  • The remaining production after cash payment and cost recovery is treated as profit that is shared between PETRONAS and contractor based on the self-adjusted profit-sharing mechanism. 
  • Contractor’s profit share is tied to the profitability index (PI) with a maximum share of 90 per cent for PI up to 1.50 and a minimum share of 30 per cent for PI equal to or more than 2.50. 
  • The interpolated contractor share between PI of 1.50 and PI of 2.50 is determined based on the formula Contractor Profit Share is equal to 1.8 – 0.6 x PI 
  • The PI is represented by the cumulative contractor’s entitlement comprising the cost recovery and profit share divided by the cumulative recoverable cost from the inception. 
  • Export Duty of 10% is levied on the Profit Oil if the oil is exported. 
  • Income tax rate is 38%.

Malaysia SFA PSC (2020)

The Malaysia SFA PSC (2020) model has been added to the library based on the law SFA PSC 2020. The highlights of the model are:

  • Cash payment to the Federal and State Governments is 10 per cent of the gross production. 
  • The gross Production after cash payments is shared between the Petronas “NOC” (Alpha) and Contractor (beta). 
  • Petronas Share (α%) is set at minimum and is a biddable item. It is fixed throughout the contract period. 
  • β% of gross production includes all costs including capex, Opex, and abandonment costs plus contractor’s margin. 
  • Contractor’s share is equal to 90% - α% (Petronas Share) 
  • Abandonment cess is agreed between Petronas and contractor, and payment to this fund is accrued on Units of production basis. 
  • Research cess, training commitment, education fund, and supplementary payment is not applicable. 
  • Income tax rate is 38%. 

Updated models

The Merak Fiscal Model Library 2021.1 release include the following fiscal update to model.

Algeria RT (2019)

The Algeria R/T (2019) model has been updated to incorporate the following changes: 

  • Annual production value is calculated post deduction of royalty deductions from the sales revenue. Royalty deductions include cost of transport by pipeline, cost of liquefying natural gas, and cost of liquefied petroleum gas. 
  • A fixed royalty rate of 50% is applied on the early production. 
  • Annual installments of development investments exclusively charged to the exploitation perimeter; annual installments of research investments made on the perimeter and negative (s) base of the previous year (s) has been added as a part of IRH annual deductions. 
  • Hydrocarbon Income Tax name has been replaced by Hydrocarbon Revenue Tax. Tax on Earnings has been replaced by Income Tax. 
  • Income Tax does not form a part of the calculations of cumulative net income. 
  • IRH and ITE is paid by contracting parties in case of a participation contract. 
  • Operating costs are added as a part of income tax deductions.

Brazil PSC Pre-Salt (2013)

The following updates are made to the Brazil PSC Pre-Salt (2013) model based on the 2nd, 3rd, 4th, 5th, and 6th Pre-Salt production sharing bid round: 

  • Signature bonus has been updated for all the blocks in the bid round. 
  • Cost Recovery limit is 50% for the North block of Carcara and 80% for rest of the blocks offered in the 2nd Pre-Salt bid round. 
  • Cost Recovery limit is 50% for the blocks offered in the 3rd Pre-Salt bid round. 
  • Cost Recovery limit is 80% for the blocks offered in the 4th Pre-Salt bid round. 
  • Cost Recovery limit is 80% for the blocks offered in the 5th Pre-Salt bid round. 
  • Cost Recovery limit is 80% for the blocks offered in the 6th Pre-Salt bid round. 
  • Research and Development Tax is recoverable as the cost oil for blocks is offered in the 1st Pre-Salt bid round while non-recoverable for blocks offered in 2nd, 3rd, 4th, 5th, and 6th Pre-Salt
  • bid round. 
  • The profit Share oil rate has been updated for the 2nd to 6th Pre-Salt bid rounds. 
  • An enhancement has been made in the lookup2D addin such that mass value of input data can be copied directly to the addin from the excel sheet.

Canada Alberta R/T (2009) 

  • A bug has been fixed such that the “Gas1 Rev ratio” logic uses “sales revenue gas1” instead of “prod revenue gas1”. 
  • A bug is fixed such that the variable “govt net volume other” uses results unit as other product volume instead of the sulphur volume. 
  • Standalone until checkbox has been turned off for the variable “comp federal tax”. 

Canada Alberta R/T (2016) 

  • A bug has been fixed such that the “Gas1 Rev ratio” logic uses “sales revenue gas1” instead of “prod revenue gas1”. 
  • A bug has been fixed such that the variable “govt net volume other” uses results unit as other product volume instead of the sulphur volume. 
  • An enhancement has been made such that the parameter "Proj C* Balance" is calculated despite the "Use Re-Entry Well Calculation" option is off. 
  • A bug has been fixed such that the rate “use different rate for 1st period” has been set to 37.5 instead of 12.5% for the depreciation variable “capital depr – pipelines”. 
  • Standalone until checkbox has been turned off for the variable “comp federal tax”. 

Canada BC R/T (2009) 

  • Standalone until checkbox has been turned off for the variable “comp federal tax”. 
  • The value of the gas price ($/mmbtu) for the price file “BCGasSelect Marker” has been updated from 1.4650 to 1.4087. 

Canada Saskatchewan R/T (2009) 

  • A bug has been fixed such that capital depreciation pool for the capital item “gatherings” has been updated to declining balance method at 25% rate instead of the straight-line depreciation method. 
  • A bug has been fixed such that the variable “govt net volume other” uses results unit as other product volume instead of the sulphur volume. 
  • “Comp capital total” variable logic has been made consistent with other Canadian models in the library. 

Mexico PSC (2014) 

The Mexico PSC (2014) model has been updated in accordance with the following three laws: 

  • SHCP annual report establishing the range of values for the economic terms associated to hydrocarbon’s exploration and extraction contracts for the year 2020. 
  • SHCP annual report establishing the range of values for the economic terms associated to hydrocarbon’s exploration and extraction contracts for the year 2021. 
  • Hydrocarbons Income Law (Updated values according to Fiscal Miscellanea Resolution DOF 11-01-2021). 
    • Contract fee for the exploration phase has been updated for the year 2020 and 2021. 
    • Exploration and production activities tax has been updated for the year 2020 and 2021. 
    • Royalty parameters A0, B0, C0, D0, E0, F0, G0, H0 are updated for the year 2019, 2020, and 2021. 

Mexico R/T (2014) 

The Mexico R/T (2014) model has been updated in accordance with the following three laws: 

  • SHCP annual report establishing the range of values for the economic terms associated to hydrocarbon’s exploration and extraction contracts for the year 2020. 
  • SHCP annual report establishing the range of values for the economic terms associated to hydrocarbon’s exploration and extraction contracts for the year 2021. 
  • Hydrocarbons Income Law (Updated values according to Fiscal Miscellanea Resolution DOF 11-01-2021). 
    • Contract fee for the exploration phase has been updated for the year 2020 and 2021. 
    • Exploration and production activities tax has been updated for the year 2020 and 2021. 
    • Royalty parameters A0, B0, C0, D0, E0, F0, G0, H0 are updated for the year 2019, 2020, and 2021. 

Mexico R/T (2014) Deepwater

The Mexico R/T (2014) Deepwater model has been updated in accordance with the following three laws: 

  • SHCP annual report establishing the range of values for the economic terms associated to hydrocarbon’s exploration and extraction contracts for the year 2020. 
  • SHCP annual report establishing the range of values for the economic terms associated to hydrocarbon’s exploration and extraction contracts for the year 2021. 
  • Hydrocarbons Income Law (Updated values according to Fiscal Miscellanea Resolution DOF 11-01-2021). 
    • Contract fee for the exploration phase has been updated for the year 2020 and 2021. 
    • Exploration and production activities tax has been updated for the year 2020 and 2021. 
    • Royalty parameters A0, B0, C0, D0, E0, F0, G0, H0 are updated for the year 2019, 2020, and 2021. 

Iraq DPSC (2009)

  • A bug has been fixed such that the scenario of the variable “first commercial production rate” and “Plateau production target BOE/d” has been set to model default rather than the earlier scenario “Badra”. 

Iraq EDPSC (2012)

  • A bug has been fixed such that the scenario of the variable “first commercial production rate” and “Plateau production target BOE/d” has been set to model default rather than the earlier scenario “Badra”. 

Merak Fiscal Model Library, add-on library enhancements and fixes

FML_Lookup2D.dll 

  • An enhancement has been made in the lookup2D addin such that mass value of input data can be copied directly to the addin from the excel sheet. 

Slb.Merak.Fml.PeepAddin.Canada_AbRoyalty.dll 

  • An enhancement has been made such that the parameter "Proj C* Balance" is calculated despite the "Use Re-Entry Well Calculation" option is off. 

Slb.Merak.Fml.PeepAddin.TimeValue.dll 

  • An enhancement has been made in the addin such that the fiscal month (ranging inclusive 1 to 12) can be defined by the user in the FML Addin setting "set fiscal year end month for calculations". This sets the output of the variable in the desired month of the fiscal year. 
  • An enhancement has been made such that if Peep preferences option "Use Fiscal Year" is selected, then it overrides the FML Addin setting "set fiscal year end month for calculations". This is honored only if the periodicity is set to "Annual" in the addin settings.

FML_Lookup.dll 

  • An enhancement has been made in the addin such that the fiscal month (ranging inclusive 1 to 12) can be defined by the user in the FML Addin setting "set fiscal year end month for calculations". This sets the output of the variable in the desired month of the fiscal year. 
  • An enhancement has been made such that if Peep preferences option setting "Use Fiscal Year" is selected, checked then it overrides the FML Addin setting "set fiscal year end month for calculations". This is honored only if the periodicity is set to "Annual" in the addin settings. 

FML_IncomeTax.dll

  • An enhancement has been made such that if Peep preferences option setting "Use Fiscal Year" is selected, then it overrides the FML Addin setting "set fiscal year end month for calculations". This is honored only if the periodicity is set to "Annual" in the addin settings. 

FML_Depr.dll

  • An enhancement has been made such that if Peep preferences option setting "Use Fiscal Year" is selected, then it overrides the FML Addin setting "set fiscal year end month for calculations". This is honored only if the periodicity is set to "Annual" in the addin settings.

Slb.Merak.Fml.PeepAddin.IncTaxPaySched.dll

  • An enhancement has been made such that if Peep preferences option setting "Use Fiscal Year" is selected, then it overrides the FML Addin setting "set fiscal year end month for calculations". This is honored only if the periodicity is set to "Annual" in the addin settings.