Country report
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12 Pages

Ethiopia upstream fiscal summary

Ethiopia upstream fiscal summary

Report summary

Frontier petroleum exploration province with a relatively simple Production Sharing Contract (PSC) fiscal regime.  Royalty rates and profit oil splits are linked to production rates, while cost recovery ceilings are negotiable.  The Government has option to participate in any development phases up to a maximum of 10%, and would be carried through the development phase with repayment from the Government's share of profit oil/gas. Split of the Barrel The barrel = lifetime revenue / field...

What's included?

This report includes 1 file(s)

  • Ethiopia upstream fiscal summary PDF - 387.15 KB 12 Pages, 10 Tables, 14 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
      • Bonuses, rentals and fees
      • Indirect taxes
      • Royalty
      • PSC cost recovery
      • PSC profit sharing
      • Corporate income tax
      • Product pricing
      • Summary of modelled terms
  • 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
    • Progressivity

In this report there are 24 tables or charts, including:

  • Executive summary
    • Revenue flowchart: Ethiopia PSC
  • Current licence, equity and fiscal terms
    • Bonuses, rentals and fees
    • Indirect taxes
    • Royalty rates
    • Current licence, equity and fiscal terms: Image 1
    • Current licence, equity and fiscal terms: Image 2
    • Profit sharing
    • Marginal and effective share of profit oil
    • Current licence, equity and fiscal terms: Image 4
    • Assumed terms by location - oil
  • Fiscal stability
    • Timeline
    • Timeline details
  • Economic analysis
    • 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 - onshore, gas
    • Maximum government share - onshore, oil
    • Maximum government share - onshore, 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
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