Upstream licences in Libya are awarded under exploration and production sharing agreements terms (EPSA). Previously licences were awarded under concession terms. Following on from the success of the EPSA IV licensing rounds Libya has been working towards converting existing concession and early EPSA licences over to the modern EPSA IV contract terms. This report focuses on the EPSA IV terms.Under the EPSA IV terms the national oil corporation of Libya takes a large share of production in the range of 70% to 90% 'off the top' but contributes to only 50% of the capital expenditure.The key fiscal terms contractor's primary production allocation profit share and signature bonuses are biddable parameters. Profit oil is divided between the contractor and the government on a dual sliding scale basis which is linked to production rates and a profitability metric.