5.1 Fiscal terms

This section gives an analysis of the economic effects of the fiscal terms which are typical of current agreements in the five economies discussed in this report. Depending on how governments deal with the effects of CO2 transport and storage on these terms, they can have a significant effect.

At the time of writing we cannot know how a carbon trading or a carbon tax regime would be treated in the fiscal terms applying to gas field developments in South-East Asia. For the analyses in this section, we make the simplifying assumption that a carbon price would provide additional revenues to a gas development over and above revenues from gas and liquids production.

The appendices contain a detailed description of the fiscal terms in each jurisdiction.