Petroleum Advisory Services Section (PASS)

PASS is an independent advisory firm focusing on the Oil & Gas industry in Iran. The Magma E&P practice comprises a multidisciplinary team with wide range of industry experience in Iranian market and expert in Iranian fiscal regime and oil and gas contracts of Iran (including the new contract of IPC). In order to reduce the cost and risk in involving the Iranian E&P market, the Magma team works alongside your E&P team members to provide strategic thinking that enable us to help you stepwise structure solutions tailored to your specific needs.

Magma advisory services target the full range of local and international E&P companies, from majors to start-ups, plus EPC, engineering companies and financers. Magma world class Advisory Services in E&P Business comprises main services as follows:

E&P Structure and Strategy Optimization
Exploration and Development are the main drivers of growth for most E&P companies. Opportunity and resource constraints restrict corporate growth achievements. The E&P Strategy Optimization Advisory services target the start-up E&P companies or local Iranian companies which are investigating establishing or converting to E&P companies. Our strategies look at four broad areas:
- Organization chart and company re-structure upon on requirements for E&P business
- Insightful company evaluations and installation of High risk/High reward approach
- Business planning, portfolio management and performance management tools and processes
- Company strategy and business case formulation based on play fairway analysis

Technical Evaluation
Understanding the Opportunities
Analytical approaches to valuation of upstream projects from the perspectives of operators, service contractors and equity investors play main role in initiation of any project. Magma has a wealth of experience and capability in providing technical and economic assessments of assets and projects. Magma advisors have hands on and long experiences onshore/offshore oil and gas fields in Iran. Our services areas focused on:
- In-depth overview of the market and its dynamics (including market and project cycles),
- Perform full market survey on the E&P sector industry in Iran,
- Provide insights on regional geology and petroleum systems for offered fields by NIOC,
- Introduce the significant players and technical Due Diligence of potential partners.

Screening and Evaluation of Assets
We work step by step with our client from insightful overview of the market to attend the data rooms by NIOC and carry out the required technical and economical studies to generate a reliable Asset Valuation Model for in-depth analysis on shortlisted investment opportunities and projects in upstream Oil & Gas projects. Our services areas focused on:
- Defining the technical/non-technical criteria alongside with company teams by considering the business policy
- Prognosis the related development concepts and technologies for offered opportunities
- Projects screening, ranking and shortlist the opportunities based on defined company criteria
- Assist the client to evaluate the prospect after attending the Data Room by NIOC
- Evaluating the risks/reward of the shortlisted prospects as well as anticipated work program and timing

Economic Evaluation and Cost/Reward Model
Having sufficient insight to select appropriate financial key performance indicators to economic evaluate upstream projects is the golden key in Promoting Inward Investment. Magma team assist the client to recognize what the key financial terms are in the framework of Iranian Petroleum Contract (IPC) required to operate and run the Cost/reward simulation. The related services include:
- Valuation of fiscal and contract issues that impact long-term viability of oil and gas field development
- Economic modeling of assets and provide the basic economic al parameters for investment decision
- Provide the project-level economic evaluation including analysis of net present value, rate of return, payback period, and cash flows

Contractual (IPC) Support
The Magma upstream advisory team combining the skills of core oil and gas engineering with the financial and contractual capabilities in order to promote the negotiation, partnership in JV and contract execution. In fact, Magma team together with client, negotiate and execute the desired strategy based on framework of new contract of IPC. This support will be in making JV with potential partner as well as NIOC. The related services include:
- Documents preparation in Prequalification and Qualification process by NIOC,
- Improve the efficiency and support negotiation with NIOC under IPC,
- Tendering support and documents preparation,
- Transaction support and documents support for lenders and financers

Joint Ventures and Legal Services
The Magma professionals and local/international network of experts support client to promote the negotiation and partnership in JV with local or international partner. Magma provides legal services covering negotiations, investments and operations in oil and gas market in Iran. The related services include:
- Joint-venture advisory and support relationship building activities between our client and potential partner for strategic joint partnerships,
- Fiscal regime and legal support in establishing a local company and operations,
- Assisting in contract negotiations and conflicts,
- Assisting the implementation of project operations by supporting in Iranian labour regulations

Magma E&P Advisory Team Commitment
Magma Professionals and Associated Advisors goal is to provide clients with all needs to assess and execute the best routes for upstream market involved into Iran. We have local knowledge through our local resources and connections as well as knowledge of an international business. We deliver all requirements you need in one stop shop in bespoke and custom made model. Our ultimate target is to be as a long-tem and trusted partner for our clients and the success to be happened with our partnership.