OMV Exploration & Production

QUICK EVALUATION
Introduction Leaflet
November 2011
Economics

Valid for Excel-tool EASY

EVALUATION pre-tax in its Version
1.0 of June 2011 (designed for Excel
Version 2003 and 2007)

Move & More.

How to use this Introduction Leaflet

General remarks

1_Input
Coloured headed slides provide
reference to Evaluation-sheets.

Tool has been developed in

Excel 2003 but is compatible to
Excel 2007.

Explanatory boxes in red framing provide

main information.

This Evaluation is on pre-tax-basis.

Results of pre-tax & post-tax evaluations
can deviate from each other.
Values to be entered in this Evaluation
have to consider inflation already.

INPUT cells are marked in grey colour.

INPUTS shall be exclusively made on the sheet
1_INPUT.
Exemption to this rule are sections on the sheets
2_Scenario Dashboard & 3_Sensitivities as
shown below :

Application examples of this Evaluation

file are provided on the following pages.
Wider fields of application will be given
during the economic trainings for project
engineers.

2_Scenario Dashboard
INPUT CELLS

Contact
Josef Donner (Economist E&P HO)
+43 1 40440-21011
josef.donner@omv.com

This tool has been developed by the department Global Project Portfolio
Management / Corporate Project Management

2 | E&P - Economics, Project Economic Quick Evaluation / November 2011

3_Sensitivities

Goal, Purpose, Target Group

f

Goal is to provide each OMV-colleague involved in projects with the possibility to evaluate
economics of a single project quickly & easily on pre-tax basis.

Main purposes
f Project Evaluation within 15 minutes.
f Additional evaluation of sensitivities to BASE Case in real time.
f (Selectable) sensitivities to project economics key drivers (Internal Rate of Return, Net Present

Value, Profitability Index) calculated & shown by selectable years.

f Target Analysis of the BASE Case & all its sensitivities.

1.

INPUT DATA (e.g.

CAPEX, OPEX,
Production)

Quick Economic
Evaluation of Project

EASY EVALUATION
-model
INPUT

2.

(pre-tax)

Sensitivity-, Scenario& Target Analysis

OUTPUT

3.
Printed-out report of
entire Evaluation &
Sensitivities etc

3 | E&P - Economics, Project Economic Quick Evaluation / November 2011

First steps: Opening the tool

Tool has been developed

in Excel 2003 but is
compatible to Excel 2007.
In Excel 2007 the macrofunction has to be
activated in Excel.

Screen resolution: Tool has been

developed for a resolution of 1440 x 900
pixel. In case you do not see the full
screen the tool provides you an automatic
screen view-adjustment on the sheet
2_Scenario Dashboard

IMPORTANT!
All macros have been developed entirely
by OMV/CPM/Project Portfolio Management
inhouse & can be therefore safely used.
Enable Macros when opening the file,
otherwise tool can not calculate.

4 | E&P - Economics, Project Economic Quick Evaluation / November 2011

First steps: Accessing the tool

Description of file-structure

5 | E&P - Economics, Project Economic Quick Evaluation / November 2011

PRESS the BUTTON

Navigating through the tool

After pressing PRESS BUTTON to access to Easy

Evaluation the tool is opened for your usage. In the
navigation bar at the lower end of the screen various
sheets can be seen.
For navigating click the various sheets or click on
hyperlinks / buttons in the Introduction-sheet.
Your starting point is the sheet 1_Input.

6 | E&P - Economics, Project Economic Quick Evaluation / November 2011

1_Input sheet

sections General & Cash Inflow

General remarks:
a) Maximum time period you can enter is 50 years.
b) In this tool you ALWAYS are asked to input POSITIVE values
c) There is also a button on this sheet named CLEAR Input Sheet all data entered will be
deleted in order not to forget old entries when calculating new business case.
UNITS column C
shows the units of the
respective data rows.

TOTALs column D shows the respective sums of data rows.

Your INPUT is
requested in grey
coloured cells !

User Language: In the dropdown menu you can

choose your favourite language to be used in
the first sheet 1_Input and calculation sheets
language will be changed on sheets
1_Input, 10_Evaluation, 11_Revenues,
12_Expenses.
You can choose between English, Romanian or
Turkish language.

Input-section
for VOLUME

Input-section for

SHRINKAGE: % entered are

deducted from VOLUME above,
which leads to SALES-Quantities
below
Input-section for
SALES PRICE

ENERGY UNIT standard

setting is mn boe (=
million boe per year).
Keeping this structure of
mn is necessary (due to
calculation purpose).

Input-section for
OTHER INCOME

7 | E&P - Economics, Project Economic Quick Evaluation / November 2011

Mandatory fields: The only input cells to be

filled-in on a mandatory basis are in this range.
E.g. If you enter 2010 as start year of the project &
2025 as end year of the project, the timeline of the
project is build up automatically on each sheet of the
file.
E.g. Functional currency has to be entered here &
is taken for entire file autiomatically then. There is no
conversion between currencies in this file.

1_Input sheet

section Cash Outflow

Your INPUT is
requested in grey
coloured cells !

Input-section for
CAPEX. Up to 5
different CAPEX-types
can be entered.

Input-section for
OPEX fixed
Input-section for OPEX variable
(related to CAPEX)
Input-section for OPEX variable (related
to Production/Quantity/Capacity)

Explanation for OPEX variable:

OPEX variable (related to CAPEX) % entered is
multiplied with TOTAL CAPEX, incurred until the respective
year of OPEX for the respective type of OPEX .
E.g. if TOTAL CAPEX of CAPEX 1( in the 1_Input-sheet
there is the possibility to enter up to 5 different CAPEX-types)
until the year 2014 are 100 mn EUR (incl. the CAPEX of the year
2014) , and variable OPEX for CAPEX 1 are 10%, then OPEX
are 10 mn EUR/year in the year 2014. The Model automatically
puts variable OPEX to zero in case there is no production in the
respective year.
OPEX variable (related to Production/Quantity/Capacity)
OPEX per 1 unit boe of Production/Quantitiy/Capacity is
multiplied with repective Volume line of section Cash
Inflow above. E.g. OPEX variable for Volume #2 (= Oil) is x
mn EUR per 1 mn boe Production multiplied with the
Production of Volume #2 leads to the OPEX variable-TOTAL
for Volume #2 in mn EUR.

General remarks for 1_Input-sheet: Inputs are to be entered over a timeline, on a

yearly basis. Exemption to this rule are mandatory fields on the very top of the sheet.
Your input data has to include inflation adjusted figures already (e.g. CAPEX are 100 mn EUR
without consideration of inflation. Inflation is 2% per year. Enter 102 mn EUR in
1_Input-sheet for one year of inflation).

8 | E&P - Economics, Project Economic Quick Evaluation / November 2011

2_Scenario Dashboardsheet Summary & Control

1. 2.
Project Name &
Person who
performed the
Evaluation in this
file.

3a. 3b. 3c.

3a: Economic Key Performance Indicators
3b: TOTAL CAPEX, TOTAL OPEX
3c: Max. Exposure, Revenue-period &
Project period.

4.Graph showing Project Cash Flow on yearly basis &

All figures are updated automically once

a change in 1_Input-sheet or by
Dashboard (see point 5. ) is made.

accumulated (discounted & non-discounted).

Single components of Cash Flow (i.e. Revenues, CAPEX, OPEX)
are shown on yearly basis, non-discounted. IRR- & NPVdevelopment over project timeline.
Graph is changed automatically once any change in 1_Inputsheet or by Dashboard (see point 5. ) is made.
The layout of the Graph can be updated by pressing the button
of point 8. ).

5.

6.

Key economic project parameters can be

changed stand-alone or in combination
(e.g. +20% CAPEX, +10% OPEX & +15% in
Sales Price).
IMPORTANT: For the depiction of the
BASE CASE (= without any changes of
variables), the %-cells below the arrowbuttons are to be zero !

1.

Cash Flow-development can

immediately be seen in the
respective year.
In addition the respective
Product and Price can be
selected (e.g. gas or oil
price).

2.
3b.

3a.

Years can be selected (e.g. most important

turning points in projects economic
development or MTP-years). Key data for
these selected years are depicted.
Example: If CAPEX are increased by +20%
in the Dashboard (see point 5. ), then the

3c.

You can select 2 years

7. which
show the
corresponding deviation.
this button triggers
8. anPressing
update of Chart-layout
(after e.g. scenario has been
changed by point 5. ).
this button
9. Pushing
triggers an update of the
Sensitivities on sheet
3_Sensitivities & on the
sheets # 4, # 5, # 6; after e.g.
scenario has been changed
by point 5. .
You can delete the

sections by
10. corresponding
pressing this button.

11.

4.
INPUT CELLS

5.

You can print the

corresponding sections by
pressing these buttons. To
have coloured printouts, just
set colour as your
standard-print setting.

Screen is adjusted to
12. respective
screen resolution.

9.
11.

10.

8.
12.
13.

9 | E&P - Economics, Project Economic Quick Evaluation / November 2011

13.
6.

7.

You can select between

Non-discounted &
Discounted depiction of
data.

3_Sensitivities sheet

INPUT CELLS

IRR

NPV
Profitability
Index

10 | E&P - Economics, Project Economic Quick Evaluation / November 2011

Sensitivities are calculated on a ceteris paribus-basis.

Sensitivities of the key drivers (i.e. CAPEX, OPEX, Price,
Production/Quantity/Capacity) on the Key Performance
Indicators (i.e. IRR, NPV, Profitability Index) are calculated by
pressing the button Update Sensitivities on sheet 2_Scenario
Dashboard (see point 9).
9.
Make your freely choosen input in the grey coloured input cells.
(e.g. if you want to see the sensitivities of 90% of the BASE
CASE, then enter 90%. 100% means that a zero-deviation from
the BASE CASE is calculated.
There are 11 INPUT CELLS. ALWAYS ENTER A VALUE in the
INPUT CELLS (0% is not a value!).
Enter a data row shown above (see BASE CASE coloured yellow
which can be -but not necessarily has to be- in the middle). You
can give a range of deviations left and right from the BASE
CASE of up to -50% to +50% in 10%-steps each.
The BASE CASE does not have to be entered in the middle: it
could be calculated a range of 10 steps beginning from the
BASE CASE with e.g. 5%-steps up to a +50% from the BASE
CASE.
The results of the calculations are shown numerically on this
sheet and graphically on sheets # 4, #5 & #6.

4_IRR- / 5_NPV- / 6_PI-Sensitiv._chart sheet

IRR

Sensitivities of
economic key drivers
on IRR, NPV &
Profitability Index (PI)

NPV

PI

e.g. 80% of CAPEX (compared

to the BASE CASE) mean that
the IRR is increasing from x %
up to y %.

11 | E&P - Economics, Project Economic Quick Evaluation / November 2011

7_CF..- / 8_Cash out/in..- / 9_Volume.. sheet

a)
c)

b)

a)
b)
c)

12 | E&P - Economics, Project Economic Quick Evaluation / November 2011

Cash Flow (discounted & nondiscounted) over entire project period

Depiction of CAPEX, OPEX and
Revenues over entire project period
Depiction of volumes used for cash-incalculation over entire project period