Petroleum Economics

and Policy Solutions

Complete Above-Ground Country E&P Information
and Petroleum Sector Risk Analysis
A Complete Solution for Above-Ground Country E&P Information and
Petroleum Sector Risk Analysis
IHS Markit Petroleum Economics and Policy Solutions (PEPS) is a complete and integrated package of information
and tools that enable in-depth understanding and holistic cross-country comparison of E&P activity and results,
upstream investment terms, and petroleum sector risk.
‒‒ Quickly evaluate and compare historical legal and contractual considerations, fiscal terms, and E&P activity
‒‒ Monitor and understand the full range of above-ground risk factors, from changes to terms,
to operational disruption

Providing Answers to Key Workflow Questions:

E&P New Ventures/ E&P Strategy, Planning, Regulators/NOCs in Producing
Business Development and Risk Management or Frontier Countries
‒‒ How do recent E&P activity ‒‒ Where might changing above- ‒‒ How attractive is my country
and results compare? How can ground risks affect current when compared to peer countries
we compare key information company operations? and neighbours?
about past license awards?
‒‒ Where does the company ‒‒ Why do investors view a peer
‒‒ How do fiscal regimes stack need to prioritize planning country more attractive than my
up– how do government and and mitigation efforts to deal country? What terms are other
investor cash flows vary and with emerging concerns? countries offering?
compare under different size,
‒‒ How does the projected ‒‒ How do our peers regulate
cost, and oil price scenarios?
future risk environment play other factors such as:
‒‒ Does analysis of legal and into acquisition and arbitration, local content,
contractual terms reveal “red divestment strategy? environmental protection?
flags" (E.g., onerous local content
‒‒
requirements)?
‒‒ Which above-ground risks could
affect investment?

With Integrated Product Modules that Cover All Aspects of Upstream

Investment Consideration

PEPS Overall E&P Attractiveness Rating

Fiscal System Rating Country Activity & Success Rating Oil & Gas Risk Ratings

Country Activity
Legal Regimes Fiscal Systems Oil & Gas Risk
and Success

Access detailed analysis Perform fiscal Quickly access key Use petroleum sector
of the main legal, fiscal benchmarking in order historical E&P activity risk assessments to both
and contractual terms, see how the relevant and results information balance E&P comparative
with links to the relevant terms compare to those by country and year, attractiveness with risk to
legislation, to identify of other countries and generate customized petroleum investment
potential “red flags” cross-country reports and to monitor risk for
for investors existing operations
Detailed Look at Product Content and Tools

PEPS Attractiveness Ratings

A proprietary rating system that integrates ratings from across fiscal, E&P activity, and oil & gas sector risk factors to
enable quantitative comparison of investment attractiveness and risks across countries of interest

PEPS Legal Regimes PEPS Country Activity and Success

Detailed legal , contractual and fiscal terms E&P Data
analysis for 150+ regimes, including: ‒ Past performance data and summary statistics on

‒
‒ The latest terms being offered in new licensing rounds licensing activity, exploration and production activity
and exploration success
‒
‒ Breakdown of all key legal and contractual requirements
‒ E&P data is presented in tabular format to allow easy
‒
and potential red flags for investors

‒
and quick comparison between countries.
‒ Environmental regulatory analysis
‒
‒ Historic evolution of contract terms and developments in License Awards
‒
fiscal terms ‒ Detailed summaries of past exploration awards,

‒
‒ Summary Analysis reports in Power Point format offering providing:
‒
a graphic overview of terms on offer ‒ Main block details and background information

‒
Full library of laws, regulations, and contracts – assembled ‒ Work commitments (e.g. seismic, wells)

‒
and translated over decades: ‒ Financial commitments
‒
‒ Petroleum laws and regulations
‒
‒ Bidding documents, Model Contracts and Licenses
‒
‒ Tax Legislation (Income Tax, Petroleum tax, etc.)
‒
‒ Foreign Investment and Other Commercial Laws
‒
PEPS Fiscal Systems PEPS Oil & Gas Risk (OGR)
Fiscal Terms for 200+ regimes Risk Rating System and Benchmarking Tools
‒ Fiscal Overview table – provides a snapshot view of Customizable tool to visualize and evaluate risk for 130+
key economic terms for all covered regimes for quick countries and territories over the immediate and five-
comparison year time-horizons, underpinned by assessments on 21
‒ Fiscal Terms for New E&P Ventures – detailed analysis upstream risk factors
of fiscal terms with clear explanations, including with
respect to any assumptions made by our analysts Risk Commentaries
Overview and analysis of the country-level drivers for each
‒ Re fe re nce s to the actual translated model contracts and
of the risk rating components
legislation, enabling clients to see the underlying legal
documents upon which the analysis is based Research Notes and Briefs
Fiscal benchmarking tools Ongoing monitoring and timely analysis of changes to
‒ Numerical analysis is done by examining the effects of the energy policy, investor relations and operational risks tied
200+ fiscal regimes on hypothetical oil and gas projects into OGR risk factors
‒ The Data Query Tool displays and allows users to export Special Reports and Quarterly Updates
averaged values for marginal, economic and upside fields Detailed analysis of emerging trends and themes affecting
for various economic indicators (from both the investor’s investors on a thematic, regional and country level
and the host country’s perspective)
‒ A graphical analysis tool provides the user with an Country Profiles
interactive way of visualizing how regimes compare with Analysis of government policy and decision making,
respect to the impact of changes in key assumptions energy fundamentals, and competitive environment in top
‒ Tool allows clients to filter by region/country, fiscal hydrocarbon producing countries
regime, fields group, peer group and/or hydrocarbon
‒ Clients can access the fiscal results table that underpins
‒
all fiscal benchmarking tools (in it they can see the fiscal
results for each of the 200+ regimes – this table can be
filtered by cost category, field size, price, etc.)
Key Differentiators
Complete and Integrated
‒‒ Enabling holistic cross-country comparison of E&P activity and results, legal and fiscal attractiveness,
and petroleum sector risk
‒‒ Answers to key country screening and risk assessment questions provided in one place - customized
reports are easy to generate
‒‒ Active monitoring of over 130+ producing and frontier countries/territories around the world
‒‒ Integrated content - E.g., fiscal analysis links to underlying legal documents, risk ratings assess potential
for changes to upstream terms
Superior Legal Content and Expertise
‒‒ Legal analysis is produced by a team of petroleum lawyers with regional expertise
‒‒ Largest upstream legal library in the world (3,400+ documents available to users online) - laws,
regulations, and contracts – assembled and translated over decades
‒‒ All legal and fiscal analysis is directly linked to the actual underlying legal documents
Tested Methodology and Trusted Experts
‒‒ Used by leading E&P companies and petroleum sector regulators since 1996
‒‒ Ratings and assessment methodology has been fully vetted across numerous market cycles
‒‒ Large team of petroleum lawyers, economists, and petroleum sector risk analysts with extensive regional
and subject matter expertise – available to clients for questions and clarification

For more information www.ihsmarkit.com

peps team About IHS Markit

E PEPSsales@ihsmarkit.com
IHS Markit (NYSE: INFO) is a world leader in critical information, analytics and expertise
to forge solutions for the major industries and markets that drive economies worldwide.
The company delivers next-generation information, analyticsand solutions to customers in
business, finance and government, improving their operational efficiency and providing deep
insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000
business and government customers, including 80 percent of the Fortune Global 500 and the
world's leading financial institutions. Headquartered in London, IHS Markit is committed to
sustainable, profitable growth.

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