Country Report
Lebanon upstream fiscal summary
Report summary
Upstream licences in Lebanon are awarded through licensing rounds under production sharing contract (PSC) terms, which are called exploration and production agreements (EPAs). Within the PSC regime, cost recovery ceiling and contractor profit share are biddable parameters. Profit sharing is linked to a R factor metric. A production-based royalty varying from 5% to 12% is levied on liquids revenue and a flat royalty of 4% is levied on gas revenue. Corporate income tax is levied at 20%. There is no mandatory state participation as per the EPA, however the state has an option to take a share in the license based on the opinion of the Petroleum Administration. The EPA mandates that there must be at least three signatories to the contract.
Table of contents
- Basis
- Licence terms
- Government equity participation
-
Fiscal terms
- Bonuses, rentals and fees
- Indirect taxes
- Royalty
- PSC production sharing
- Ring fencing
- PSC cost recovery
- Base
- Rate (cost fee ceiling)
- Recoverable costs
- Unrecovered costs
- PSC profit sharing
- Base
- Rate
- Corporate income tax
- Ring fencing
- Base
- Rate
- Payment schedule
- Fiscal treatment of decommissioning
- Product Pricing
-
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 22 images and tables including:
- Timeline
- Split of the barrel - oil
- Split of the barrel - gas
- Share of profit - oil
- Share of profit - gas
- Effective royalty rate and minimum state share
- 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
- Royalty rate - liquids (%)
- Royalty rate (%)
- Contractor profit share (%)
- Contractor profit share (%)
- Summary of modelled terms
What's included
This report contains:
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