Oilfield business case with NPV and IRR in minutes

Full financial model: CAPEX, OPEX, taxes, realization price, discounting. The platform delivers NPV, IRR, PBP and a sensitivity matrix across 6 key drivers — in a single run.

How the business case is built

Each block has its own input data source. The platform supports on-the-fly changes to any parameter and recalculates the entire case.

BLOCK 01

Production profile

From reservoir simulation: peak, decline rate, water cut, GOR. Source: reservoir simulation agent.

BLOCK 02

CAPEX

Drilling, surface facilities, infrastructure — by benchmark norms. unit cost × volume.

BLOCK 03

OPEX

Lifting, water injection, processing, transport, well workovers. $/bbl · $/Mcf.

BLOCK 04

Taxes

MET, EPT, reverse excise, corporate income tax, HTR incentives. Auto-detection of the regime.

BLOCK 05

Realization price

Brent / Urals / gas spot. Base + 3 price scenarios.

BLOCK 06

NPV / IRR / PBP

Cash flow, discounting, metrics and sensitivity matrix. WACC 12–15%.

When you need a ready financial model

The same case — three audiences, different requirements for depth and format.

Investment committee

Summary one-pager with NPV/IRR and three scenarios. Go/no-go decision.

audience: board

Bank / Financing

Cash flow for DSCR, covenants, payback. Year-by-year breakdown.

audience: credit

Top management

Value levers: which 2–3 drivers turn a loss-making asset into a profitable one.

audience: c-level

M&A analyst

Tornado analysis, exit multiples, peer comparison.

audience: analyst

Six levers that drive NPV

The platform automatically runs ±20% across every key driver and shows which one actually moves asset value.

  • Oil price (Brent / Urals)The main lever — ±20% typically shifts NPV by ±30–40%.
  • Surface CAPEXOften overestimated — optimization yields +15–25% NPV.
  • OPEX per tonSensitive on mature assets with declining production.
  • Production profileP10 → P90 produces a 2–3x spread in NPV.
  • Tax regimeSwitching to EPT or HTR incentives can be a deciding factor.
  • WACC / discount rate±1 pp on WACC shifts NPV by ~5–8%.

Excel financial model vs AVP AI

A standard upstream financial model and its AI equivalent on the same asset.

Excel financial model

  • TIME1–2 weeksto build and validate the model
  • SCEN2–3 scenarioslimited by manual effort
  • TAXManual selectionof MET/EPT and incentives — at the author's discretion
  • SENSOne tornadoagainst a fixed price
  • UPDEach edit takes a daybroken formulas, inconsistencies

AVP AI

  • TIME10 minutesfor a full case with tornado
  • SCEN6+ scenarios in parallelprice, profile, taxes, CAPEX
  • TAXAuto-detection of the regimewith applicable incentives
  • SENSTornado across 6 driversat once for every price scenario
  • UPDEdit → recalc in < 1 secfor any parameter in the case

Frequently asked questions about the business case

By default: a base scenario based on the analyst consensus forecast, plus +20%, −20% and a stress scenario (for example, $40/bbl Brent). The user can set custom assumptions: a fixed price, a year-by-year price curve, currency, or the Urals-to-Brent discount formula.

Yes. The platform automatically determines the applicable tax regime (MET or EPT), HTR incentives, offshore incentives, mature-field incentives and water-cut adjustments. If a field has several reservoirs under different regimes, each is calculated separately.

By default — 12–15% real WACC for Russian upstream. You can set your own (for example, 10% for a large publicly traded operator or 18–20% for a project with high geological uncertainty).

All results are stored as CSV files with a full audit trail behind every value. They can be opened in Excel or Python for further refinement by your in-house team and approval at the investment committee.

We will build NPV / IRR / sensitivity for your field

Run a case in 10 minutes: prices, taxes, CAPEX, production profile. Get a ready one-pager for the investment committee and a CSV export with a full audit trail.