New Software Release

Product details

Merak Fiscal Model Library is a world-class collection of standardized fiscal models that supports accurate economic results. The library contains more than 219 models, covering most petroleum-producing countries. These customizable models can be used with the Peep module in Merak planning, risk, and reserves software.

Merak Fiscal Model Library 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 with the Peep module in Merak software and any current Merak Fiscal Model Library models and add-ins.

Key features of this release

New Model

The Merak Fiscal Model Library 2019.3 release includes the following new model: 

India RSC Onshore (2017)

This new model is released based on accordance to the 2017 Hydrocarbon Exploration & Licensing Policy (HELP). HELP provides a uniform licensing system to cover all hydrocarbons such as oil, gas, coalbed methane, and shell oil and gas. The highlights of the bill are as follows:

• Exploration is allowed throughout the contract period.
• Exploration phase has been increased from 7 years to 8 years for onshore areas and from 8 years to 10 years for offshore areas.
• A concessional royalty regime will be implemented for deepwater and ultradeepwater areas. These areas would not have any royalty for the first seven years (instead of the 5% at present), and thereafter would have a concessional royalty of 5% (in deepwater areas) and 2% (in ultradeepwater areas), instead of the 10% at present. 
• In shallow water areas, the royalty rates are reduced from 10% to 7.5%. The royalty is same for onshore areas; that is 12.5% for oil and 10% for gas so that there is no impact on revenue to the state governments.
• Present fiscal system of production sharing contract (PSC) is replaced by an easy to administer “revenue sharing model.” Under the new regime, the government will not be concerned with the cost incurred and will receive a share of the gross revenue from the sale of oil, gas, etc. Revenue share will be calculated by a linear interpolation mechanism.
• Income tax rate is 34.61% (domestic companies) or 43.26% (foreign companies) (model assumes effective rate for net income exceeding INR 100 million) 
• Minimum alternative tax (MAT) applies to company, if income tax is less than 18.5% of book profit, then the tax liability under this provision shall be 18.5% of the book profit.

Updated Models

The Merak Fiscal Model Library 2019.3 release includes the following fiscal updates to models:

Australia Extended PRRT (2012)

• Updated in accordance with the new law, the Treasury Laws Amendment (2019 Petroleum Resource Rent Tax Reforms No. 1) Bill 2019.
• No change for existing petroleum projects where the production license was applied for projects prior to 1 July 2019.
• General expenditure incurred more than five years prior to a production license being applied for (Class 1 GDP factor expenditure) is subject to an uplift rate equal to the GDP factor.
• General expenditure incurred no more than five years prior to a production license being applied for in relation to a new petroleum project is subject:
  • ten years after the financial year in which the project first derives assessable petroleum receipts
  • an uplift rate equal to the LTBR+5 percentage points
  • an uplift rate equal to the LTBR.

Canada Alberta Oil Sands R/T (2009)

• Fixed a bug where Comp Capital Aband total variable counted the value of the Proj Capital Aband twice while consolidating Canadian cases.

Canada Alberta RT (2009)

• Fixed a bug where Comp Capital Aband total variable counted the value of the Proj Capital Aband twice while consolidating Canadian cases.

Canada Alberta RT (2016)

• Fixed a bug where the Peep calculation stops responding when certain MRF parameters (TLL & TMD) in the Canada Alberta R/T (2016) case were updated.
• Fixed a bug where Comp Capital Aband total variable counted the value of the Proj Capital Aband twice while consolidating Canadian cases.

Canada BC RT (2009)

• Fixed a bug where Comp Capital Aband total variable counted the value of the Proj Capital Aband twice while consolidating Canadian cases.

Canada Frontier RT (2009)

• Fixed a bug where Comp Capital Aband total variable counted the value of the Proj Capital Aband twice while consolidating Canadian cases.

Canada Saskatchewan RT (2009)

• Fixed a bug where Comp Capital Aband total variable counted the value of the Proj Capital Aband twice while consolidating Canadian cases.

Canada Nova Scotia RT (2009)

• Fixed a bug where Comp Capital Aband total variable counted the value of the Proj Capital Aband twice while consolidating Canadian cases.

Canada NFLD RT (2003)

• Fixed a bug where Comp Capital Aband total variable counted the value of the Proj Capital Aband twice while consolidating Canadian cases.

Nigeria JDZ PSC (2003)

• Fixed a bug such that royalty is calculated based on an incremental scale using the gross oil production instead of the earlier BOE (oil + gas + NGL) production.

Mexico R/T (2018) Onshore Unconventional

• The model “Mexico RT (2018) Onshore Unconventional” is removed from the FML library 2019.3 as the Model License Contract for Round 3 Deepwater CNH-R03-L03/2018 stands cancelled by the Mexico government.