Country Report

Bahrain upstream fiscal summary

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22 July 2019

Bahrain upstream fiscal summary

Report summary

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%.

Table of contents

  • Basis
  • Licence terms
  • Government equity participation
    • Bonuses, rentals and fees
    • Indirect taxes
    • PSC production sharing
    • Ring fencing
    • PSC cost recovery
    • Base
    • Rate (cost recovery ceiling)
    • Recoverable costs
    • Unrecovered costs
    • PSC profit sharing
    • Base
    • Rate
    • Payment schedule
    • Corporate income tax (petroleum income tax)
    • Ring fencing
    • Base
    • Rate
    • Payment schedule
    • Fiscal treatment of decommissioning costs
    • 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

Tables and charts

This report includes 22 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 and minimum state share - onshore, oil and gas
  • Effective royalty rate and minimum state share - shelf, oil and gas
  • Maximum government share – onshore, oil and gas
  • Maximum government share – shelf, oil and gas
  • State share versus pre-share IRR - oil
  • State share versus pre-shareIRR - gas
  • Investor IRR versus pre-share IRR - oil
  • Investor IRR versus pre-share IRR - gas
  • Bonuses, rentals and fees
  • Indirect taxes
  • Cost recovery ceiling (oil and gas)
  • Administrative Overhead Charges - Operating Costs
  • Administrative Overhead Charges - Capital Costs
  • Contractor profit share (oil and gas) - split by location
  • Contractor profit sharing (oil and gas) - split by location
  • Assumed terms by location - oil and gas

What's included

This report contains:

  • Document

    Bahrain upstream fiscal summary

    PDF 948.49 KB

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