Country Report
Madagascar upstream fiscal summary
Report summary
Companies operating in Madagascar do so under Production Sharing Contract (PSC) terms. The most recent terms are based on the 2018 model PSC, which was released during the suspended 2018 licensing round. Royalties depend on a production-based sliding scale. Cost ceilings for oil and gas are a flat percentage of available production. Profit oil/gas is based on the remaining production after cost recovery, and is shared between investors and the government on a sliding scale linked to an R-Factor. A Direct Tax on Hydrocarbons - the corporate income tax substitute for the oil industry – is payable at a flat rate of 20%
Table of contents
- Basis
- Licence terms
- Government equity participation
-
Fiscal terms
- Royalty
- Ring fencing
- Base
- Rate
- Payment schedule
- PSC production sharing
- Ring fencing
- PSC cost recovery
- Base
- Rate
- Recoverable costs
- Unrecovered costs
- PSC profit sharing
- Base
- Rate
- Payment schedule
- Direct Tax on Hydrocarbons (IDH)
- Base
- Rate
- 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 25 images and tables including:
- Bonuses, rentals and fees
- Indirect taxes
- 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
- Royalty rates
- Marginal and effective oil royalty rates
- Marginal and effective gas royalty rates
- Profit sharing
- Marginal and effective share of profit oil
- Marginal and effective share of profit gas
- Assumed terms by location - oil
- Assumed terms by location - Gas
What's included
This report contains:
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