Country Report
Bangladesh upstream fiscal summary
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.
Table of contents
- 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
- Recoverable costs
- Unrecovered costs
- PSC profit sharing
- Base
- Rate
- Payment schedule
- Additional petroleum taxes
- Domestic supply obligation (DSO)
- Ring fencing
- Base
- Rate
- Payment schedule
- Corporate income tax
- Ring fencing
- Base
- Rate
- Payment schedule
- Fiscal treatment of decommissioning
- 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 30 images and tables including:
- Timeline
- Timeline detail
- 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
- Effective royalty rate and minimum state share - onshore, gas
- Effective royalty rate and minimum state share - shelf, oil
- Effective royalty rate and minimum state share - shelf, gas
- Effective royalty rate and minimum state share - deepwater, oil
- Effective royalty rate and minimum state share - deepwater, gas
- Maximum government share and maximum state share - onshore, oil
- Maximum government share and maximum state share - onshore, gas
- Maximum government share and maximum state share - shelf, oil
- Maximum government share and maximum state share - shelf, gas
- Maximum government share and maximum state share - deepwater, oil
- Maximum government share and maximum state share - deepwater, gas
- State share versus Pre-Share IRR - oil
- State share versus Pre-Share IRR - gas
- Investor IRR versus Pre-Share IRR - oil
- Investor IRR versus Pre-Share IRR - gas
- Bonuses, rentals and fees
- Indirect taxes
- Contractor profit share - oil and gas (onshore)
- Contractor profit share - oil (onshore)
- Contractor profit share - gas (onshore)
- Contractor profit share - oil and gas (offshore)
- Contractor profit share - oil and gas (offshore)
- Assumed terms by location - oil and gas
What's included
This report contains:
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