4.1.5. Composite Score (CS)

Composite score (CS) is selected because it comprehensively evaluates the fiscal regimes of oil and gas projects. The linear weighting method is used to consider the indicators of GT and FLI. Thus, the linear weighting function of the composite score is built as

$$\text{CS} = \text{W1} \times \text{GT} + \text{W2} \times \text{FLI}\_{\prime} \tag{19}$$

where W1 and W2 reflect the attitude of the investor relating to the contribution of GT and FLI to the attractiveness of the fiscal regimes. This is determined by the decision-makers in accordance with their own experience. The CS is a comprehensive indicator that reflects the attractiveness of fiscal regimes. The interpretation for the CS is that the smaller the CS, the greater the attractiveness of the fiscal terms in the petroleum contract.
