Iraq upstream fiscal summary Report

Country Report 07 June 2023

Get this report

$1,650

You can pay by card or invoice

Share link

First name
Last name
Job Title
Company
Email
Telephone

Country

Message

Consent

Please keep me informed about Wood Mackenzie products, services and events.

For details on how your data is used and stored, see our Privacy Notice.

- FAQs about online orders
- Find out more about subscriptions

Report summary

Upstream licences in Federal Iraq are awarded through licensing rounds under Service Contracts terms. These terms have features of both a service contract and a production sharing contract (PSC) and hence are referred to as a Hybrid Service Contract. The last Hybrid Service Contract was awarded in May 2018. The hybrid service contract terms comprise of a royalty, cost fee, remuneration fee and income tax. Remuneration fee is the only biddable parameter and is a percentage of net revenue share. Royalty is levied at 25%, cost fee ceiling varies by oil price from 30% to 70%. Corporate income tax is levied at 35%.

Basis
Licence terms
Government equity participation
Fiscal terms
- Bonuses, rentals and fees
- Indirect taxes
- Royalty
- Ring fencing
- Base
- Rate
- Service fee
- Ring fencing
- Cost fee
- Base
- Rate (cost fee ceiling)
- Recoverable costs
- Unrecovered costs
- Remuneration fee
- Base
- Rate (remuneration fee)
- Payment schedule
- Corporate income tax
- Fiscal treatment of decommissioning
- Product Pricing
- Summary of modelled terms
Recent history of fiscal changes
Stability provisions
Split of the barrel and share of profit
Effective royalty rate and maximum government share
Progressivity
Fiscal deterrence