Chad upstream fiscal summary Report

Country Report 25 May 2023

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Report summary

Both Concession and Production Sharing Contract (PSC) agreements exist in Chad. However, recent blocks have been awarded under PSC terms, first introduced in 2007, and currently based on the 2010 model PSC and the Petroleum Law amended in 2010. The PSC terms are relatively straight-forward. They comprise of flat-rate royalty and cost recovery, with profit sharing based on an R-Factor mechanism. All key fiscal parameters are negotiable. Corporate Income Tax (CIT) is paid by the government on behalf of the contractor.

Basis
Licence Terms
Government equity participation
Fiscal terms
- Bonuses, rentals and fees
- Indirect taxes
- Royalty
- Ring fencing
- Base
- Rate
- PSC cost recovery
- Base
- Rate (cost recovery ceiling)
- Unrecovered costs
- PSC profit sharing
- Payment schedule
- Corporate income tax
- Ring fencing
- Base
- Deductions
- 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