The valuation of international concessions, prospects and producing fields varies greatly from country to country because of differences in fiscal and political regimes. The valuation of such properties must therefore include quantified adjustments for these differences in the light of comparative modes of sale of other international properties. The market for acquisitions and divestitures works by applying such adjustments also to the values derived for domestic analogues with comparable geological, engineering and economic risks.

This paper discusses the primary types of fiscal regimes found around the world, namely licenses with royalties and taxes, association agreements and production sharing contracts. Discounted cash flow models are shown readily applicable to proved reserves.

A review of a recent market transaction is presented to demonstrate these effects. Political risk in the international market is shown to be additive.

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