Country Report
Kenya upstream fiscal summary
Report summary
Upstream licences in Kenya are awarded under production sharing contract (PSC) terms which are governed by the 2019 Petroleum Code. PSCs may be awarded through bidding rounds or via direct negotiations. The National Oil Corporation of Kenya (NOCK), typically takes a 10-20% stake in any commercial development, comprising a carried interest through the exploration phase. The main production sharing terms are cost recovery and profit sharing linked to an R-factor, which are fixed. Corporate income tax is also levied. Bonuses and minor rentals and fees are included in all contracts.
Table of contents
- Basis
- Licence terms
- Government equity participation
-
Fiscal terms
- Bonuses, rentals and fees
- Indirect taxes
- Royalty
- Domestic Market Obligation (DMO)
- PSC production sharing
- Ring fencing
- PSC cost recovery
- Rate (cost recovery ceiling)
- Recoverable costs
- Unrecovered costs
- Excess cost recovery
- PSC profit sharing
- Rate
- Payment schedule
- Corporate income tax
- Fiscal treatment of decommissioning costs
- 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
Tables and charts
This report includes 19 images and tables including:
- Timeline
- Timeline details
- Split of the barrel - oil
- Split of the barrel - gas
- Share of profit - oil
- Share of profit - gas
- Effective royalty rate - Oil
- Effective royalty rate - Gas
- Maximum government share – Oil
- Maximum government share – 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
- Bonuses, rentals and fees
- Indirect taxes
- Profit sharing
- Contractor profit share
- Assumed terms by location - oil and gas
What's included
This report contains:
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