Country Report

Democratic Republic of Congo upstream fiscal summary

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12 July 2018

Democratic Republic of Congo upstream fiscal summary

Report summary

The Petroleum Law introduced in 2015 states that all future licences will be production sharing contracts (PSCs), and will be awarded via licensing rounds. The Petroleum Law left a number of key questions on fiscal terms unanswered. We expect the regime to be further clarified in a model PSC, but this has yet to be released by the government. We expect the terms to comprise of royalty, super profit oil (SPO), cost recovery, excess cost oil and profit share. Further taxes could be applied. Corporate income tax (CIT) will be paid by the government.

Table of contents

  • Basis
  • Licence terms
  • Government equity participation
    • Ring fencing
    • Bonuses, rentals, fees
    • Indirect taxes
    • Royalty
    • PSC cost recovery
    • Cost recovery ceiling
    • Excess cost oil
    • PSC profit sharing
    • Corporate income tax
    • 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 31 images and tables including:

  • Timeline
  • Timeline detail
  • Split of the barrel - oil
  • Split of the barrel - gas
  • Share of profit - oil
  • Share of profit - gas
  • Effective royalty rate - onshore, oil
  • Effective royalty rate - shelf, oil
  • Effective royalty rate - deepwater, oil
  • Effective royalty rate - onshore, gas
  • Effective royalty rate - shelf, gas
  • Effective royalty rate - deepwater, gas
  • Maximum government share - onshore, oil
  • Maximum government share - shelf, oil
  • Maximum government share - deepwater, oil
  • Maximum government share - onshore, gas
  • Maximum government share - shelf, gas
  • Maximum government 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, fees
  • Indirect taxes
  • Royalty rates
  • Cost recovery
  • Estimated effective profit share - oil
  • Estimated effective profit share - gas
  • Assumed terms by location - oil
  • Assumed terms by location - gas

What's included

This report contains:

  • Document

    Democratic Republic of Congo upstream fiscal summary

    PDF 1016.13 KB

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