Bahrain upstream fiscal summary Report

Country Report 13 October 2023

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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%.

Basis
Licence terms
Government equity participation
Fiscal terms
- 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