Country Report
China upstream fiscal summary
Report summary
Upstream licences for the international oil companies (IOCs) are awarded under Production Sharing Contract (PSC) terms through licensing rounds and direct negotiations. The PSCs predominantly apply to offshore projects, while most of the onshore licences are awarded to the national oil companies (NOCs) under concession terms. State companies have the right to take a minimum working interest of 51% in any commercial development. Past exploration costs incurred by an IOC are not reimbursed by the state, but may be recovered from the share of production. Cost recovery ceilings and profit oil splits vary by area and hydrocarbon type, based on a sliding scale rates linked to production. Profit oil splits are negotiable, while cost recovery ceilings are set for each licensing round. Resource tax, corporate income tax, special oil levy, export duty and a range of bonuses, rentals and fees are payable.
Table of contents
- Basis
- Licence terms
- Government equity participation
-
Fiscal terms
- Bonuses, rentals and fees
- Indirect taxes
- Ring fencing
- Base
- Rate
- Payment schedule
- Royalty surcharge
- Ring fencing
- Base
- Rate
- Payment schedule
- Export levy
- Ring fencing
- Base
- Rate
- Payment schedule
- PSC production sharing
- Ring fencing
- PSC cost recovery
- Base
- Rate
- Recoverable costs
- Unrecovered costs
- PSC profit sharing
- Base
- Rate
- Payment schedule
- Additional petroleum taxes
- Special oil levy
- Ring fencing
- Base
- Rate
- Corporate income tax
- Ring fencing
- Base
- Deductions
- Rate
- 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 32 images and tables including:
- Timeline
- Timeline details
- 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 rateand minimum state share- onshore, gas
- Effective royalty rateand minimum state share- shelf, oil
- Effective royalty rateand minimum state share- shelf, gas
- Effective royalty rate and minimum state share- deepwater, oil
- Effective royalty rateand minimum state share- deepwater, gas
- Maximum government shareand 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
- Cost recovery ceiling - oil
- Cost recovery ceiling - gas
- Contractor profit share - onshore
- Contractor oil profit share - offshore
- Contractor oil profit share - offshore
- Special oil levy
- Effective special oil levy rate
- Assumed terms by location - oil and gas
What's included
This report contains:
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