Country Report
Liberia upstream fiscal summary
Report summary
Upstream petroleum agreements are awarded under Production Sharing Contract (PSC) terms. The Petroleum (Exploration and Production) Act, 2014, amended in 2019 governs the petroleum sector. Contracts are awarded through competitive bidding, direct negotiations, or executive allocation to the NOC. In the latest licensing rounds and direct negotiations, signature bonus was the only negotiable fiscal item. Cost recovery was flat at 70%, while production was shared between the investor and government on a sliding scale via a rate of return (IRR) mechanism. The NOC may assume at least 10% in any petroleum agreement, carried through exploration and development costs.
Table of contents
- Basis
- Licence terms
- Government equity participation
-
Fiscal terms
- Bonuses, rentals and fees
- Indirect Taxes
- Royalty
- Payment schedule
- PSC Production Sharing
- Ring Fencing
- PSC Cost Recovery
- Base
- Rate (cost recovery ceiling)
- Recoverable costs
- Unrecovered costs
- PSC Profit Sharing
- Base
- Rate
- Payment schedule
- Corporate Income Tax
- Ring fencing
- Base
- Rate
- Deductions
- Additional Profits Tax
- Domestic Market Obligation
- 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
Tables and charts
This report includes 21 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
- Effective contractor profit share - oil
- Assumed terms by location - oil
- Assumed terms by location - Gas
What's included
This report contains:
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