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Cyprus upstream fiscal summary

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04 July 2018

Cyprus upstream fiscal summary

Report summary

Upstream licences in Cyprus are awarded through licensing rounds under production sharing contract terms (PSCs). The model used in this analysis are based on 2016 model exploration and production sharing contract terms. Signature bonus, production bonus, cost recovery ceiling and contractor profit share are all biddable parameters. Profit sharing rates are linked to project profitability. Income tax is paid by the state from its share of profits. The state does not have any equity participation within the PSC regime

Table of contents

  • Executive summary
    • Basis
    • Licence terms
    • Government equity participation
    • Fiscal terms
      • Ring fencing
      • Bonuses, rentals and fees
        • Bonus, rentals and fees
      • Indirect taxes
      • Royalty
      • PSC cost recovery
      • PSC profit sharing
      • Corporate income tax
      • Fiscal treatment of decommissioning
      • Product pricing
      • Summary of modelled terms
    • Split of the barrel and share of profit
    • Effective royalty rate and maximum government share
    • Progressivity
    • Fiscal deterrence

Tables and charts

This report includes 16 images and tables including:

  • Revenue flowchart: Cyprus PSC
  • 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
  • Maximum Government Share and maximum state share
  • 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
  • Indirect taxes
  • Profit Sharing - deepwater
  • Contractor profit share (oil and gas)
  • Cyprus PSC Terms
  • Bonuses, rentals and fees

What's included

This report contains:

  • Document

    Cyprus upstream fiscal summary

    PDF 263.05 KB