Convention suggests that emerging market investment should
provide commensurately lower risk or higher returns than
comparable assets in developed countries. This study demonstrates
that emerging markets contain regulatory specificities that challenge
asset valuation model convergence and potentially invert risk return
convention. 292 oilfield assets are used to provide evidence that,
under upward oil prices, emerging markets are characterized by
progressive state participation in oilfield cashflows. Specifically, this
work advances the low oil price paradigm of prior oil and gas asset
valuation studies and provides evidence that emerging market state
participation terms limit the corporate value of globalization for the
sector