Country Report

Albania upstream fiscal summary

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04 July 2018

Albania upstream fiscal summary

Report summary

Upstream licences in Albania are awarded through licensing rounds under production sharing contract terms (PSCs). The model used in this analysis includes the latest PSC terms on offer in licensing rounds for each respective environment. Within the PSC regime, cost recovery ceiling and contractor profit share are biddable parameters. Profit sharing is linked to a project profitability metric. Royalty and income tax are levied at 10% and 50% respectively. Signature and production bonuses are negotiable. In addition an incremental royalty linked to project profitability may also be payable as a part of the negotiation. The state does not have any equity participation within the PSC regime.

Table of contents

  • Executive summary
    • Basis
    • Licence terms
    • Government equity participation
    • Fiscal terms
      • Ring fencing
      • Bonuses, rentals and fees
      • Indirect taxes
      • Royalty
        • Incremental Royalty rates
      • PSC cost recovery
      • PSC profit sharing
      • Corporate income tax
      • 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
      • Effective royalty rate - shelf and deepwater, oil and gas
      • Maximum government share - shelf and deepwater, oil and gas
    • Progressivity
    • Fiscal deterrence

Tables and charts

This report includes 23 images and tables including:

  • Revenue flowchart: Albania PSC
  • Timeline
  • Timeline detail
  • 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
  • State share versus Pre-Share IRR - oil
  • State share versus Pre-Share IRR - gas
  • Investor IRR versus Pre-Share IRR - oil
  • Investor IRR versus Pre-Share IRR - gas
  • Bonuses, rentals and fees
  • Indirect taxes
  • Incremental Royalty rates - onshore
  • Cost recovery ceiling rates
  • Profit sharing
  • Assumed terms: Profit split
  • Assumed terms by location - oil and gas
  • Economic analysis: Table 2
  • Maximum government share - onshore, oil and gas
  • Economic analysis: Table 4
  • Current licence, equity and fiscal terms: Image 1

What's included

This report contains:

  • Document

    Albania upstream fiscal summary

    PDF 261.37 KB

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