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.