Category: Financial / Legal / Administrative / Political

Investment multiple is defined as the accumulated pre-tax receipts received by an IOC (less recovered operating profits) divided by accumulated capital expenditures and exploration costs uplifted by x% (e.g. 50%). For example, in the IM calculation, if exploration costs are $100 million the denominator for the IM calculation will use $150 million to represent the high risk exploration costs.

In a portfolio, correlation is evaluated by calculating a share’s “beta value”, a number describing the relationship between the share’s returns and the index’s returns. When the beta is zero, there is no correlation between the behavior of the share and the index. When it’s 1, the relationship is perfect and the returns of the share and the index are identical. Beta can also be negative, meaning the share moves in the opposite direction than the market does.

Is paid to the state when the product ceases to be produced. The rate of tax and the basis for the tax change from country to country based on a fixed fee of the production or as a percentage of the gross revenues