Country Report
Afghanistan upstream fiscal summary
Report summary
Afghanistan has a relatively transparent and standard form of Production Sharing Contract (PSC) fiscal regime. The actual contracts are known as Exploration and Production Sharing Contracts (ESPCs) and include royalty, profit sharing and corporate income tax. Profit oil splits vary with project profitability (the R-Factor), there is no cost recovery ceiling. Royalty is the main biddable item. Profit sharing rate is dependent on R-factor achieved. Bonuses and rental fees are included in the contract. There is no obligatory state equity participation.
Table of contents
- Basis
- Licence terms
- Government equity participation
-
Fiscal terms
- Bonuses, rentals and fees
- Indirect taxes
- Royalty
- Ring fencing
- Base
- Rate
- Payment schedule
- PSC production sharing
- Ring fencing
- PSC cost recovery
- Base and rate
- Recoverable costs
- Unrecovered costs
- Payment schedule
- PSC profit sharing
- Base and rate
- Corporate income tax
- Ring fencing
- Base
- Income
- Deductions
- Rate
- Payment schedule
- Fiscal treatment of decommissioning
- Product pricing
- Summary of modelled terms
- Recent history of fiscal changes
- Stability Provisions
- Split of the barrel and share of profit
- Effective royalty rate and maximum government share
- Progressivity
- Fiscal deterrence
- Investor IRR versus pre-share IRR - oil
Tables and charts
This report includes 17 images and tables including:
- Timeline
- Timeline details
- Split of the barrel - oil
- Split of the barrel - gas
- Share of profit - oil
- Share of profit - gas
- Effective royalty rate - onshore , oil and gas
- Maximum government share – onshore, oil and gas
- State share versus pre-share IRR - oil
- State share versus pre-share IRR - gas
- Investor IRR versus pre-share IRR - gas
- Bonuses, rentals and fees
- Indirect taxes
- Profit sharing
- Profit sharing
- Assumed terms by location - oil and gas
What's included
This report contains:
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