Bangladesh upstream fiscal summary Report

Country Report 27 October 2023

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Report summary

All licences in Bangladesh are governed by production sharing contracts (PSCs) of several vintages. We base our analysis on the most recent 2012 Model PSC terms. Contracts are awarded through licensing rounds and direct negotiations. National oil company, Petrobangla, does not have mandatory interests in the blocks. Cost recovery ceilings ranging from 55% to 70% and production bonuses up to US$6 million are set in the PSC. Various fees, corporate income tax of 25% for companies listed on Bangladesh exchange and 35% for non-listed companies are also payable. Bonuses, profit splits based on production rates (indicatively from 20% to 55% for the contractor) and domestic supply obligation (up to 80% of contractor's profit oil) are negotiable. For deepwater areas a higher cost recovery ceiling is applicable, and Petrobangla pays income tax on behalf of the contractor.

Basis
Licence terms
Government equity participation
Fiscal terms
- Bonuses, rentals and fees
- Indirect taxes
- Royalty
- PSC production sharing
- Ring fencing
- PSC cost recovery
- Base
- Rate
- 20 more item(s)...
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