Assessment of fiscal terms of international petroleum contracts

Fiscal terms of oil contracts are primary non-resource factors international oil companies consider when they want to enter a country. The attractiveness of the fiscal terms has a fundamental effect on a projectʹs feasibility and economic benefits of international oil companies, and it is an important indicator for judging the countryʹs investment environment of oil industry. Government take has flaws in reflecting the attractiveness of different countriesʹ oil contract fiscal provisions, it only reflects the ratio of the governmentsʹ total income to project total income, neglects the impacts of different timetables of government take on the international oil companies and contract attractiveness. Defined front-loading index and fiscal terms score to reflect the impacts of different government-take timetables and the attractiveness of a fiscal system, constructed a linear weighted function of fiscal terms score, government take and front-loading index, evaluated and sorted attractiveness of 11 countriesʹ fiscal provisions.