Country Report

Brunei Darussalam upstream fiscal summary

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26 July 2018

Brunei Darussalam upstream fiscal summary

Report summary

Recent upstream licences are awarded under Production Sharing Contract (PSC)-based fiscal regime, while all production licences are currently governed by older concession terms. Royalty, cost recovery ceilings and profit oil splits vary by area and hydrocarbon type, with the latter based on a sliding scale rates linked to production. Profit oil splits are biddable/negotiable, while cost recovery ceilings and royalties are set for each licensing round. Corporate income tax, supplementary payment and research contributions are payable. State companies have the right to take a working interest of up to 15% in any commercial development. Past exploration costs incurred by an IOC are reimbursed by the state from its share of production if it does exercise its right. 

Table of contents

  • Executive summary
    • Basis
    • Licence terms
    • Government equity participation
    • Fiscal terms
      • Ring fencing
      • Bonuses, rentals and fees
      • Indirect taxes
      • Royalty
      • PSC cost recovery
      • PSC profit sharing
      • Additional petroleum taxes
        • Supplementary payment
        • Research contribution
      • Corporate income tax
        • Depreciation schedule for a hypothetical US$100 million platform
      • Fiscal treatment of decommissioning
      • Product pricing
      • Summary of modelled terms
        • Assumed terms by location - oil and gas
    • Recent history of fiscal changes
    • Stability provisions
    • Split of the barrel and share of profit
    • Effective royalty rate and maximum government share
    • Progressivity
      • State share versus Pre-Share IRR - gas
    • Fiscal deterrence

Tables and charts

This report includes 29 images and tables including:

  • Revenue flowchart: Brunei PSC
  • Split of Barrel - oil
  • Split of 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
  • Economic analysis: Image 5
  • Investor IRR versus Pre-Share IRR - oil
  • Investor IRR versus Pre-Share IRR - gas
  • Bonuses, rentals and fees
  • Indirect taxes
  • Contractor profit share - oil
  • Contractor profit share - gas
  • Current licence, equity and fiscal terms: Image 1
  • Current licence, equity and fiscal terms: Image 2
  • Economic analysis: Image 6
  • Current licence, equity and fiscal terms: Table 5
  • Current licence, equity and fiscal terms: Table 6

What's included

This report contains:

  • Document

    Brunei Darussalam upstream fiscal summary

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