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Malaysia upstream fiscal summary

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21 January 2019

Malaysia upstream fiscal summary

Report summary

From 2018, all licences are governed by Revenue/Cost index (R/C) production sharing contracts. Contracts are awarded through direct negotiation or during a licensing round. The R/C index based sliding scales for cost recovery ceilings, sharing of unused cost oil and profit oil are set prior to each licensing round and are non-biddable items. Other non-biddable items include an export duty of 10%, a research contribution of 0.5%, a sliding scale based supplementary payment of 50 to 70% and petroleum income tax of 38%. In 2010, a range of incentives was introduced to promote investments in the upstream sector, including the additional income tax allowance for deepwater areas.

Table of contents

  • Executive summary
  • Current licence, equity and fiscal terms
  • Basis
  • Licence terms
  • Government equity participation
    • Bonuses, rentals and fees
    • Indirect taxes
    • Royalty
      • Ring fencing
      • Base
      • Rate
      • Payment schedule
    • PSC production sharing
      • Ring fencing
    • PSC cost recovery
      • Base
      • Rate (cost recovery ceiling)
      • Cost recovery ceiling (oil and gas) - split by location
      • Cost recovery ceiling (oil and gas) - split by location
      • Recoverable costs
      • Unrecovered costs
      • Excess cost recovery
      • Contractor share of unused cost oil/gas - split by location
    • PSC profit sharing
      • Base
      • Rate
      • Contractor profit share (oil and gas) - split by location
      • Payment schedule
    • Additional petroleum taxes
      • Ring fencing
    • Export duty
      • Base
      • Rate
      • Payment schedule
    • Supplementary payment
      • Base
      • Rate
      • Deepwater supplementary payment rate
      • Payment schedule
    • Research contribution
      • Base
      • Rate
      • Payment schedule
    • Corporate income tax (petroleum income tax)
      • Ring fencing
      • Base
      • Rate
      • Payment schedule
    • 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 31 images and tables including:

  • Revenue flowchart: Malaysia PSC
  • Bonuses, rentals and fees
  • Indirect taxes
  • Assumed terms by location - oil and gas
  • Timeline
  • Fiscal stability: Table 1
  • Split of Barrel - oil
  • Split of barrel - gas
  • Share of profit - oil
  • Share of profit - gas
  • Effective royalty rate and minimum state share - onshore/shelf, oil
  • Effective royalty rate and minimum state share - onshore/shelf, gas
  • Effective royalty rate and minimum state share - deepwater, oil
  • Effective royalty rate and minimum state share - deepwater, gas
  • Maximum government share and maximum state share - onshore/shelf, oil
  • Maximum government share and maximum state share - onshore/shelf, gas
  • Maximum government share and maximum state share - deepwater, oil
  • Maximum government share and maximum state share - deepwater, 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
  • Current licence, equity and fiscal terms: Table 3
  • Current licence, equity and fiscal terms: Image 1
  • Current licence, equity and fiscal terms: Table 4
  • Contractor share of unused cost oil/gas - split by location
  • Current licence, equity and fiscal terms: Table 5
  • Contractor profit share (oil and gas) - split by location
  • Deepwater supplementary payment rate
  • Current licence, equity and fiscal terms: Image 4
  • Depreciation schedule

What's included

This report contains:

  • Document

    Malaysia upstream fiscal summary

    PDF 852.78 KB

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