Country report
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16 Pages

Indonesia upstream fiscal summary


Indonesia upstream fiscal summary

Report summary

Effective 2017, all new upstream licences are awarded under new Gross Split PSC terms.  The mechanism involves revenue sharing between the contractor and the government, based on a number of parameters. The parameters include base split, incremental variable split (10 parameters), plus progressive split (linked to oil price and cumulative production). The corporate income tax is also payable. A contractor may be obliged to offer a 10% participating contract interest to a regional government owned company, following development approval of the first field in the contract area.  

What's included?

This report includes 1 file(s)

  • Indonesia upstream fiscal summary PDF - 390.42 KB 16 Pages, 18 Tables, 12 Figures

Description

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
      • Bonuses, rentals and fees
      • Indirect taxes
      • Royalty
      • PSC cost recovery
      • PSC profit sharing
      • Additional petroleum taxes
        • Domestic market obligation (DMO)
      • Corporate income tax
      • Fiscal treatment of decommissioning
      • Product pricing
      • Summary of modelled terms
  • Fiscal stability
    • Recent history of fiscal changes
      • Timeline details
    • Stability provisions
  • Economic analysis
    • Split of the barrel and share of profit
    • Effective royalty rate and maximum government share
      • Effective royalty rate - onshore, gas
      • Maximum government share - shelf, oil
    • Progressivity
    • Fiscal deterrence

In this report there are 30 tables or charts, including:

  • Executive summary
    • Revenue flowchart: Indonesia PSC
  • Current licence, equity and fiscal terms
  • Basis
    • Bonuses, rentals and fees
    • Indirect taxes
    • Current licence, equity and fiscal terms: Table 3
    • Contractor oil revenue share at different oil prices
    • Contractor gas revenue share
    • Current licence, equity and fiscal terms: Table 4
    • Assumed terms by location - oil and gas
  • Fiscal stability
    • Timeline
    • Fiscal stability: Table 1
  • Economic analysis
    • Split of Barrel - oil
    • Split of barrel - gas
    • Share of profit - oil
    • Share of profit - gas
    • Effective royalty rate - onshore, oil
    • Economic analysis: Table 2
    • Effective royalty rate - shelf, oil
    • Economic analysis: Table 4
    • Effective royalty rate - deepwater, oil
    • Effective royalty rate - deepwater, gas
    • Maximum government share - onshore, oil
    • Maximum government share - onshore, gas
    • Economic analysis: Table 9
    • Maximum government share - shelf, gas
    • Economic analysis: Table 11
    • Economic analysis: Table 12
    • 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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