Merak Fiscal Model Library

Version 3.4

Release Notes

June 2007

Merak FML V3.4 Release Notes

Copyright © 2007 Schlumberger.
All rights reserved.
June 2007
Table of Contents
1. Overview ____________________________________________________________ 1

2. FML Licensing Changes in Peep 4.2 and the Later Versions _________________ 1

3. Updated Models ______________________________________________________ 1

4. General Changes and Improvement _____________________________________ 2

5. FML Add-in Library Enhancements and Fixes _____________________________ 3

6. System and Add-in Files for FML Version 3.4 ______________________________ 3

7. Recent Bid Rounds and Future Model Additions ___________________________ 4

Merak FML V3.4 Release Notes

Copyright © 2007 Schlumberger.
All rights reserved.
June 2007
1. Overview
The Merak Fiscal Model Library (FML) Version 3.4 is our latest release since the FML 3.3
Release in April 2007. Highlights of the Merak FML 3.3 Release are:
• 10 fiscal models updated
• Enhancements, additions and fixes to the FML add-in library
• General performance enhancements to the Peep Add-ins
• More integrations of the FML to the Merak V&R Suite.
These highlights are discussed in more detail through this document.

2. FML Licensing Changes in Peep 4.2 and the Later Versions

• Old FML Licensing No Longer Works in Peep 4.2
Peep version 4.2 now supports FML licensing through FlexLM and only works with this
licensing, so new licenses need to be issued when upgrading from Peep 4.1 or lower. Prior to
upgrading to Peep 4.2 or higher, clients should get a new FlexLM license file which includes
the Regions for which they have subscribed (and appropriate number of seats).
• Old Client Models (pre-FML 2.0) must be upgraded by Schlumberger FMB Group to
utilize new Licensing
To enable the add-ins and new licensing to work in Peep 4.2 (or newer versions), existing
client models based on the FML must be modified to be recognized as FML Models by Peep.
This is a fairly short process that can be performed by the FML Support Desk in Houston
(fmlsupport@slb.com, or +1 (713) 621-1165 Code 1813. The steps required are:
1. Send an export (PEX) file of all FML-based custom models (models only) from your
master database
2. FML Support Desk will convert the models so they support the new licensing and
send back to you ASAP.
This procedure must be done for all FML models that are migrated from previous Peep
versions. Once updated, the models may be moved between databases and will be forward
compatible in later Peep versions.
• Database upgrade requirements in Peep 4.2 – 4.3
The Database Upgrade Tools provided in the Peep Release Version 4.2 – 4.3 did not include
the items required for FML licensing. Schlumberger has provided a script file for users to run
that will upgrade their databases. A zip file containing the instructions and the script files is
available at:
http://www.enevative.com/Client%20Downloads/SLB%20FML%204.2x%20Upgrade%20Scripts.zip

3. Updated Models
The FML 3.4 Release includes the following model updates:

Algeria PSC (2001) This model was updated to reflect the changes made in December 2006
legislation. The exception profit tax, which is applied in any month when
posted Brent is over $30/bbl, was added to this PSC.

Merak FML V3.4 Release Notes Page 1

Copyright © 2007 Schlumberger.
All rights reserved.
June 2007
 Algeria R/T (2005) This model accounted for the change in the basis for royalty calculations
to sales revenue less transport costs. This also removed abandonment
from uplift calculations on the tax tab. Also, a report entitled “Proj
Transport Cost” to enhance drill down functionality was added.

Colombia Assoc (2002) This model was updated to reflect the changes in the 2006 tax legislation,
which decreased the income tax rate to 34% for 2007 and 33% for 2008
and beyond. Additionally, there is an income tax allowance applicable on
new investments (Development Drilling Success and Facilities Capital).
The income tax allowance rate is 30% effective 2006 and was increased
to 40% for 2007 and beyond.

Colombia R/T (2004) This model was updated to reflect the changes in the 2006 tax legislation
decreasing the income tax rate to 34% for 2007 and 33% for 2008 and
beyond. Additionally, there is an income tax allowance applicable on new
investments (Development Drilling Success and Facilities Capital). The
income tax allowance rate is 30% effective 2006 and was increased to
40% for 2007 and beyond.

Egypt PSC (1998) This model was updated to include Net Profit Interest calculations based
of contractor’s profits. The model default for NPI rate is set to 0%. User
should edit NPI rate at the case level to trigger NPI calculations.

Italy R/T (2000) This model was updated to include Value Added Tax (VAT) calculations
at a rate of 20%.

Kurdistan PSC (2006) Abandonment fund accrual into the abandonment overlay was mapped
onto the tax tab for Project, contractor, company, NOC, and participation
were updated.

Netherlands R/T (1996) This model was updated to incorporate the reduction of the corporate
income tax rate from 29.6% to 25.5% effective January 1, 2007.

Peru License Prod (2003) The lookup rate for royalty was changed from an incremental – flat sliding
scale to a direct – linear sliding scale per additional research.

United Kingdom R/T (1982) This model was updated to reflect to new tax legislation effective from
April 2008 decreasing the Income tax rate to 28% from 30%.

4. General Changes and Improvement

• Windows Installer install – Merak FML is now shipped in two formats, the old zip files with
batch files, which should be used by corporate IT departments who want to push FML installs
to client machines, as well as a Windows Installer (setup program). The Windows installer is
simpler to use in a stand alone environment, and is also integrated into the main Merak setup.

Merak FML V3.4 Release Notes Page 2

Copyright © 2007 Schlumberger.
All rights reserved.
June 2007
5. FML Add-in Library Enhancements and Fixes
• Depreciation – Corrected for this version was a problem in straight line abandonment
accrual when a negative delay was used. Also fixed was a problem with straight line
depreciation where a very small amount of the capital pool was not being recovered. We
also added a double declining balance to enhance our methods.

6. System and Add-in Files for FML Version 3.4

The FML version 3.4 installation batch file now installs the add-ins and system files to the C:\Program
Files\Merak\Fiscal Model Library\... folder. The add-in filenames are named to have the “FML_”
prefix.
Files required for the Fiscal Model Library version 3.4 are:
• System Files – These files will be installed to the Window’s System32 folder when the
Installation file is run:

System File Name Version

BlobArr.dll 2.0.1.0
MSFLXGRD.OCX 6.0.84.18
PeepAddIn3.dll 3.4.0.11
peepaddin4.dll 3.4.0.24
socx5.ocx 5.7.0.0
VBCLNK10.OCX 1.0.0.25
vsflex8l.ocx 8.0.20062.231
Note: vsflex8l.ocx has been updated from previous FML versions. We recommend upgrading to the
new version with FML 3.4. The old version can be used, and the results will be correct, however a
pop-up about the Component One license will be displayed on some FML screens.
• Add-in Files – These files will be installed to the Add-in folder when the Installation file is run.
Add-in File Name Version
FML__Angola1997_CostRec.dll 3.4.0.48
FML__AustPRRT1991_AbandCredit.dll 3.4.0.40
FML__AustPRRT1991_ProdLic.dll 3.4.0.36
FML__CanNovaScotiaRT1999_Royalty.dll 3.4.0.36
FML__Colombia2000_RFactor.dll 3.4.0.36
FML__Colombia_Aband_Fund.dll 3.4.0.15
FML__Ecuador_PriceQualityAdj.dll 3.4.0.36
FML__Ecuador_PSQualityAdj.dll 3.4.0.36
FML__GhanaRT1997_APT.dll 3.4.0.36
FML__PeruLicense2003_Royalty.dll 3.4.0.37
FML__UK_IncomeTax.dll 3.4.0.78
FML__UK_PRT.dll 3.4.0.44
FML__UK_TariffPayments.dll 3.4.0.47
FML__UK_Tariffreceipts.dll 3.4.0.87
FML__USAlaska_Severance.dll 3.4.0.35
FML__VenezuelaOSA1994_OpFee.dll 3.4.0.35
FML__VenezuelaOSA1997_MIRR.dll 3.4.0.35
FML_AbandAccrual_FAS143.dll 3.4.0.72
FML_CarryPayback.dll 3.4.0.57

Merak FML V3.4 Release Notes Page 3

Copyright © 2007 Schlumberger.
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June 2007
 FML_Constants.dll 3.4.0.52
FML_ConstScen.dll 3.4.0.15
FML_CostRec.dll 3.4.0.67
FML_CostRecAct.dll 3.4.0.49
FML_CostRecAlloc.dll 3.4.0.58
FML_CostRecSimple.dll 3.4.0.48
FML_CostRecTransfer.dll 3.4.0.72
FML_CostSplit.dll 3.4.0.45
FML_Days.dll 3.4.0.50
FML_Depr.dll 3.4.0.119
FML_EchoAdv.dll 3.4.0.52
FML_EchoMult.dll 3.4.0.15
FML_EchoToGlobalData.dll 3.4.0.56
FML_Error_Messages.dll 3.4.0.41
FML_Escalation.dll 3.4.0.43
FML_IncomeTax.dll 3.4.0.78
FML_IncomeTaxPaySched.dll 3.4.0.62
FML_Indicators.dll 3.4.0.40
FML_LoanBasic.dll 3.4.0.73
FML_LoanFixed.dll 3.4.0.42
FML_Lookup2D.dll 3.4.0.46
FML_Lookup.dll 3.4.0.57
FML_LookupProd.dll 3.4.0.44
FML_LookupROR2D.dll 3.4.0.43
FML_LookupROR.dll 3.4.0.48
FML_Participation.dll 3.4.0.37
FML_PayoutFlag.dll 3.4.0.42
FML_PeriodConv.dll 3.4.0.55
FML_ProductGroups.dll 3.4.0.55
FML_Reserves_3cat.dll 3.4.0.49
FML_ReservesAdvanced.dll 3.4.0.45
FML_ReservesBasic.dll 3.4.0.78
FML_TariffPayments.dll 3.4.0.59
FML_Tariffreceipts.dll 3.4.0.94
FML_TimeValue.dll 3.4.0.61
FML_Unity.dll 3.4.0.44
FML_Zero.dll 3.4.0.47
MultiIndicator.dll 3.4.0.15
PaySched.dll 1.5.0.14

7. Recent Bid Rounds and Future Model Additions

We are looking forward to supplying the new fiscal terms and models for the bid rounds that are going
to be executed by the next release. To be included in future releases will be the most recent bid
rounds for Peru, Chile, Poland, and Barbados, complete with the fiscal terms and model PSC. If you
require a specific country or model that is not currently in our database, please contact us
immediately. We have many models undergoing development and testing at any given time, and we
can usually provide new models or updates in a very timely manner. Here is a list of future bid rounds

Merak FML V3.4 Release Notes Page 4

Copyright © 2007 Schlumberger.
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June 2007
that are on the horizon, accompanied by the models that would be appropriate to use (or their
planned release.

Country Closing Date Model (or when ready)

India September 2007 India PSC (1999)
Sri Lanka August 2007 4th Quarter
Bahrain September 2007 Bahrain PSC (1998)
Cypress July 16, 2007 3rd Quarter
Chile Q3 2007 Chile RSC (1996)
Peru July 9, 2007 Peru License Prod (2003)
Barbados November 1, 2007 3rd Quarter
Columbia Multiple Rounds Columbia RT (2004)

Merak FML V3.4 Release Notes Page 5

Copyright © 2007 Schlumberger.
All rights reserved.
June 2007