Fiscal Advisory and Benchmarking

Fiscal Advisory & Benchmarking

Broad and insightful analysis of fiscal terms in a business-focused context

Oil and gas companies must pay close attention to the full range of fiscal terms applicable to their ventures at all stages from exploration to field abandonment.  These are just as important to the profitability of their ventures, as is the nature of the subsurface geology.  Such companies and their investors need to decide the best nations for investment, given their expertise and risk preferences, and to ensure that they win competitive bids against rival companies while not bidding to a level that impairs long term value.  

In addition, the political character of the host nation may give helpful clues to investors as to the likelihood that the fiscal bargain struck at the start of the license term will be honored throughout its duration.  At the same time, host countries are in competition with each other for investment from IOCs and from foreign NOCs.  For all of these reasons, comparisons of fiscal regimes together with prospectivity are essential both for investors and for host governments.  

GaffneyCline has over 50 years of experience analyzing oil and gas sector fiscal regimes on behalf of clients all over the world.  We have broad and deep experience of the strategic, technical, commercial and legal elements which influence the attractiveness of oil and gas opportunities to the industry, particularly in competitive situations such as licensing rounds.  These elements of GaffneyCline’s experience put us in an extremely strong position to assist or support companies in evaluating and in bidding for oil and gas industry licenses anywhere in the world.  

Furthermore, following initial indications that a specific company or joint venture has been awarded a block, we are accustomed to working for both oil and gas companies and host governments to develop a comprehensive and robust negotiating stance.  

Contact GaffneyCline to discuss your scenario.