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/gas price and cumulative production). The corporate income tax and withholding tax are payable at a combined rate of 40%. 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.