Country report
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13 Pages

Eritrea upstream fiscal summary

Eritrea upstream fiscal summary

Report summary

Frontier petroleum exploration province with a relatively simple Production Sharing Contract (PSC) fiscal regime.  Royalty rates, cost recovery ceilings and profit oil splits are all linked to production rates.  The Government has the option to participate in any commercial discovery with a participating interest of up to 20% and is carried through the exploration period. Eritrea is a one-party political state, with the ruling People's Front for Democracy and Justice the only party allowed...

What's included?

This report includes 1 file(s)

  • Eritrea upstream fiscal summary PDF - 397.26 KB 13 Pages, 11 Tables, 9 Figures


Volatility in oil markets has led players in the upstream oil and gas industry to focus on reducing capital spend and operating costs. At the same time, governments need to review fiscal terms to maintain attractiveness and investment.

This country report gives an overview of the key fiscal issues for this country. If you’re interested in identifying and assessing upstream investment and expansion opportunities, this upstream fiscal summary report is your definitive commercial guide.

Potential investors, governments and companies in the oil and gas sector can use it to gain a better understanding of the critical issues for development opportunities in this country.

Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research. Proprietary data means a superior level of analysis that is simply not available anywhere else. Wood Mackenzie is the recognised gold standard in commercial data and analysis.

  • Executive summary
  • Current licence, equity and fiscal terms
    • Basis
    • Licence terms
    • Government equity participation
    • Fiscal terms
      • Ring fencing
      • Royalty
      • PSC cost recovery
      • PSC profit sharing
      • Corporate income tax
      • Product pricing
  • Fiscal stability
    • Recent history of fiscal changes
    • Stability provisions
  • Economic analysis
    • Split of the barrel and share of profit
    • Effective royalty rate and maximum government share

In this report there are 20 tables or charts, including:

  • Executive summary
    • Revenue flowchart: Eritrea PSC
  • Current licence, equity and fiscal terms
    • Bonuses, rentals and fees
    • Indirect taxes
    • Current licence, equity and fiscal terms: Table 3
    • Marginal and effective rates for oil royalty
    • Current licence, equity and fiscal terms: Image 2
    • Current licence, equity and fiscal terms: Table 4
    • Current licence, equity and fiscal terms: Table 5
    • Current licence, equity and fiscal terms: Image 3
    • Current licence, equity and fiscal terms: Image 4
    • Summary of modelled terms
    • Current licence, equity and fiscal terms: Table 7
  • Fiscal stability
  • Economic analysis
    • Split of the barrel - oil
    • Split of the barrel - gas
    • Share of profit - oil
    • Share of profit - gas
    • Economic analysis: Table 1
    • Economic analysis: Table 2
    • Economic analysis: Table 3
    • Economic analysis: Table 4
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