A key measure in
evaluating and comparing petroleum fiscal systems across countries is the profit split between governments
of resource nations and the contractors. The optimal method of evaluating the profit split is to conduct detailed economic simulations by means of cash flow analysis; the corresponding quick estimation method, related to royalty/tax systems and production-sharing contracts, may be adopted concurrently. With the aid of these calculations and comparisons, we can understand directly the relative attractiveness of various
petroleum fiscal terms in different countries. Comparing and evaluating various oil & gas projects in countries of different petroleum fiscal systems not only helps contractors choose the optimal investment target to increase benefits, but is also favorable for governments of resource nations to have a full command of the current international oil and gas
exploration & development market. Additionally , such a process of comparison and evaluation has advantages for; working out and adjusting the petroleum fiscal terms suitable for resource conditions in order to realize the dual goals of attracting foreign capital in the exploration & devel-
opment of national resources and avoiding the loss of national resource interests. Utilizing the above methods to estimate projects taken by the contractor from profits split, special attention should be paid to the e-conomic differences among projects in exploration, development and production.