The World Fiscal Rating of Oil Terms is the rating study prepared by VME and is the most extensive upstream fiscal rating in the world. It is based on VME’s proprietary petroleum fiscal model and VME’s rating methodology.

The Rating delivers the insights into the competitiveness of fiscal terms for oil projects around the world and is a very useful tool for governments and investors to judge whether certain terms are competitive and attractive. The rating includes fiscal systems from more than 160 countries and includes multiple systems within a country. It is regularly updated and expanded as new systems evolve across the world.

The Rating is updated at least quarterly. Users are notified as soon as a new edition is out. All updates during the subscription period are included into the cost of subscription.

The users package includes the following:

  • Detailed methodology and assumptions document (PDF)
  • Main overall rating (PDF)
  • Detailed rating results (Excel)
  • Descriptions of each fiscal system included into the rating (PDF)
  • Special country reports (PDF)
  • Online access to the rating results and all of the documents
  • Online feature to pivot the rating results

The Rating is the new format for our renowned study published in 2011-2013

The Rating includes onshore, shallow water and deep water systems. Onshore systems apply to North American systems based on wells and international systems based on fields or contract areas. It includes fiscal systems for conventional and unconventional oil in the same rating.

The Rating is based on the fiscal terms only and includes a wide range of standard price and cost assumptions. The Excel spreadsheet with the detailed results will provide for all rating combinations for the price levels of $40, $50, $60, $70, $80, $90 and $100 per barrel, cost levels of $10, $15, $20, $25, and $30 per barrel, and field cases of 20, 50, 100, 200 and 500 million barrels.

The Fiscal Rating is done for the following yardsticks (in real economic terms) on an un- risked basis: undiscounted government take, government take discounted at 10%, undiscounted government income take, government income take discounted at 10%, undiscounted profit to investment ratio, 10% discounted profit to investment ratio, net cash flow per barrel, and the 10% discounted net present value per 10% discounted barrel.

The following risked yardsticks are used: net cashflow per barrel, undiscounted government take and 10% discounted government take.

The user can therefore use any or various of the 1,925 ratings to create an unparalleled insight in the competitiveness of one or more fiscal systems. The analysis is furthermore facilitated by providing the Rating based on the above yardsticks and in alphabetical order.

The Fiscal Rating is also very useful in combination with the subscription to our WORLD FISCAL MODEL, where the user can specify any prices and costs for each case, as well as to see annual cash flows and all economic yardsticks for the investor’s, government’s and NOC’s sides.

CONTACT US for a subscription.

On the basis of a confidentiality agreement we will also rate a particular fiscal system that a government or company would like to propose or evaluate. CONTACT US for a proposal.