Country report
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13 Pages

Benin upstream fiscal summary


Benin upstream fiscal summary

Report summary

Simple Production Sharing Contract (PSC)-based fiscal regime, where the State has the option to back in to any commercial development up to a maximum of 15% equity provided that a minimum of 20,000 b/d is produced from the discovery.  Royalty (known as Petroleum Production Tax, or PPT) is levied at a flat rate on both oil and gas, whilst cost recovery ceilings are negotiable up to 80%.  Production remaining after PPT and cost recovery is divided between the government and contractor on a...

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  • Benin upstream fiscal summary PDF - 395.45 KB 13 Pages, 18 Tables, 8 Figures

Description

Volatility in oil markets has led players in the upstream oil and gas industry to focus on reducing capital spend and operating costs. At the same time, governments need to review fiscal terms to maintain attractiveness and investment.

This country report gives an overview of the key fiscal issues for this country. If you’re interested in identifying and assessing upstream investment and expansion opportunities, this upstream fiscal summary report is your definitive commercial guide.

Potential investors, governments and companies in the oil and gas sector can use it to gain a better understanding of the critical issues for development opportunities in this country.

Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research. Proprietary data means a superior level of analysis that is simply not available anywhere else. Wood Mackenzie is the recognised gold standard in commercial data and analysis.

  • Executive summary
  • Current licence, equity and fiscal terms
    • Basis
    • Licence terms
    • Government equity participation
    • Fiscal terms
      • Ring fencing
      • Bonuses, rentals and fees
      • Indirect taxes
      • Royalty
      • PSC cost recovery
      • PSC profit sharing
      • Corporate income tax
      • Product pricing
      • Summary of modelled terms
  • Fiscal stability
    • Recent history of fiscal changes
    • Stability provisions
  • Economic analysis
    • Split of the barrel and share of profit
    • Effective royalty rate and maximum government share
      • Effective royalty rate - deepwater, oil
    • Progressivity
      • State share versus Pre-Share IRR - gas
    • Fiscal deterrence

In this report there are 26 tables or charts, including:

  • Executive summary
    • Revenue flowchart: Benin PSC
  • Current licence, equity and fiscal terms
    • Bonuses, rentals and fees
    • Indirect taxes
    • Royalty rates - oil
    • Royalty rates - gas
    • Profit sharing
    • Effective contractor profit share - oil
    • Effective contractor share profit - gas
    • Assumed terms by location - oil
    • Assumed terms by location - gas
  • Fiscal stability
    • Timeline
    • Timeline detail
  • Economic analysis
    • Economic analysis: Table 1
    • Economic analysis: Table 2
    • Effective royalty rate - onshore, oil
    • Economic analysis: Table 4
    • Effective royalty rate - onshore, gas
    • Effective royalty rate - deepwater, gas
    • Economic analysis: Table 7
    • Maximum government share – deepwater, oil
    • Maximum government share – onshore, gas
    • Maximum government share – deepwater, gas
    • State share versus Pre-Share IRR - oil
    • Economic analysis: Image 2
    • Investor IRR versus Pre-Share IRR - oil
    • Investor IRR versus Pre-Share IRR - gas
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