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Are tougher African fiscal terms achieving their aim?

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04 November 2014

Are tougher African fiscal terms achieving their aim?

Report summary

World-class exploration success in a number of Sub-Saharan countries has encouraged governments to toughen fiscal terms. However, it is unclear if increasing government take is achieving the aim of maximising government revenues. Tougher terms increase the economic threshold of future discoveries and can discourage further exploration investment. But if fiscal change is managed correctly, countries can avoid creating the ‘boom-and-bust’ cycles in investment and revenue generation.

Table of contents

    • Constant evolution, but delayed effect
      • Total government take in Sub-Saharan commercial assets (at 10% discount rate)
    • Mature and emerging players are modifying terms
    • but is it too much, too late for some plays?
      • Volumes discovered by licensing round and respective government share
      • Exploration investment and discovery size in Angola and Nigeria
      • Volumes discovered by licensing round and government share
    • What can be done?
      • Appendix 1: Fiscal Terms for new Licenses/Contracts

Tables and charts

This report includes 9 images and tables including:

  • 2014 - US$90.00bbl long-term oil price
  • Average Government take: 2004 v 2014
  • Angola: Deepwater and Ultra-deepwater
  • Nigeria: Deepwater
  • Angola: Deepwater and Ultra-deepwater
  • Nigeria: Deepwater
  • Ghana: Deepwater
  • Mozambique: Deepwater
  • Are tougher African fiscal terms achieving their aim?: Table 1

What's included

This report contains:

  • Document

    Are tougher African fiscal terms achieving their aim?

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