Upstream licences in Bahrain are awarded under production sharing contracts (PSCs). Bahrain follows an open licensing policy, where companies can directly bid for open blocks. The model used in this analysis is based on the PSC terms from 2009. Within the PSC regime, cost recovery ceilings and contractor profit share are biddable items depending on profitability levels specified by the government. A biddable production bonus is also payable. Corporate income tax is levied at 46%. There are no deepwater blocks so only shelf and onshore blocks are included in the PSCs. National Oil and Gas Authority (NOGA) has the right to participate in the development of a commercial discovery by acquiring a participating interest of up to 10%.