Country Report
Ecuador upstream fiscal summary
Report summary
Ecuador holds competitive licensing rounds and offers blocks under service contracts and, more recently, under PSC terms. All existing contracts with private participation operate under service contracts. Service contracts include a negotiable contractor's fee. In addition, technology, labour and corporate income taxes apply on the contractor's service fee. In September 2018, Ecuador launched its first licensing round under new PSC terms. The new PSC does not have royalty or cost oil. The profit sharing mechanism is driven by production and a price-based biddable component. A sovereignty adjustment ensures government share is at least 50%.
Table of contents
- Production sharing contract (Contrato de participación)
- Basis
- Licence terms
- Government equity participation
-
Fiscal terms
- Bonuses, rentals and fees
- Royalty
- PSC production sharing
- Ring fencing
- PSC cost recovery
- PSC profit sharing
- Environmental tax (ECORAE)
- Substitutive tax (Ley 40)
- Labour participation tax
- Corporate income tax
- Fiscal treatment of decommissioning costs
- Product pricing
- Summary of modelled terms
- Service contract
- Basis
- Licence terms
- Government equity participation
-
Fiscal terms
- Bonuses, rentals and fees
- Royalty (Levies)
- Service fee
- Contributions
- Technology tax
- Labour participation tax
- Corporate income tax
- Fiscal treatment of decommissioning costs
- Product pricing
- Summary of modelled terms
- Recent history of fiscal changes
- Stability provisions
-
Split of the barrel and share of profit
- Production sharing contract
- Service contract
-
Effective royalty rate and maximum government share
- Production sharing contract
- Service contract
- Production sharing contract
- Service contract
-
Progressivity
- Production sharing contract
- Service contract
-
Fiscal deterrence
- Production sharing contract
- Service contract
Tables and charts
This report includes 42 images and tables including:
- Timeline
- Timeline detail
- Indirect taxes
- Production component of the government profit share rate
- Production component of the government profit share rate
- Price component of the government profit share rate
- Price component of the government profit share rate
- Ecuador PSC (oil)
- Ecuador PSC (gas)
- Indirect taxes
- Assumed base service fees
- Assumed base service fees
- Ecuador service contract (oil)
- Ecuador service contract (gas)
- Split of the barrel - oil
- Split of the barrel - gas
- Share of profit - oil
- Share of profit - gas
- Split of the barrel - oil
- Split of the barrel - gas
- Share of profit - oil
- Share of profit - gas
- Effective royalty rate - onshore/offshore, oil
- Effective royalty rate - onshore/offshore, gas
- Effective royalty rate - onshore/offshore, oil
- Effective royalty rate - onshore/offshore, gas
- Maximum government share - onshore, oil
- Maximum government share - onshore, gas
- Maximum government share - offshore, oil
- Maximum government share - offshore, gas
- Maximum government share - onshore, oil
- Maximum government share - onshore, gas
- Maximum government share - offshore, oil
- Maximum government share - offshore, gas
- State share versus Pre-Share IRR - oil
- State share versus Pre-Share IRR - 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
- Investor IRR versus Pre-Share IRR - oil
- Investor IRR versus Pre-Share IRR - gas
What's included
This report contains:
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