Fiscal Flexibility: In pursuit of progressivity

Integral to answering the question about value and capital allocation is the ability to compare the attractiveness of fiscal terms as it pertains to project economics. In doing so Government Share is a necessary but not a wholly sufficient valuation metric. Instead, the attractiveness and stability of a fiscal regime depends on both the absolute Government Share and crucially its built-in flexibility to cope with a variety of cash flow drivers such as costs, hydrocarbon price or reserve base.