Country report
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18 Pages

Malaysia upstream fiscal summary

Malaysia upstream fiscal summary

Report summary

All licences in Malaysia are governed by production sharing contracts (PSCs), of which there are four main vintages: (i) 1976 PSC Model, (ii) Post-1985 PSC Model (conventional areas), (iii) Post-1993 PSC Model (deepwater areas), and (iv) Post-1996 PSC Model (Revenue/Cost Index). Malaysia's PSC-based fiscal system is one of the most complex in the world. The oil and gas base prices on which Supplementary Payments are calculated have remained at the same levels since 2000, and there are no...

What's included?

This report includes 1 file(s)

  • Malaysia upstream fiscal summary PDF - 399.50 KB 18 Pages, 19 Tables, 15 Figures


Volatility in oil markets has led players in the upstream oil and gas industry to focus on reducing capital spend and operating costs. At the same time, governments need to review fiscal terms to maintain attractiveness and investment.

This country report gives an overview of the key fiscal issues for this country. If you’re interested in identifying and assessing upstream investment and expansion opportunities, this upstream fiscal summary report is your definitive commercial guide.

Potential investors, governments and companies in the oil and gas sector can use it to gain a better understanding of the critical issues for development opportunities in this country.

Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research. Proprietary data means a superior level of analysis that is simply not available anywhere else. Wood Mackenzie is the recognised gold standard in commercial data and analysis.

  • Executive summary
  • Current licence, equity and fiscal terms
    • Basis
    • Licence terms
    • Government equity participation
    • Fiscal terms
      • Ring fencing
      • Bonuses, rentals and fees
      • Indirect taxes
      • Royalty
      • PSC cost recovery
      • PSC profit sharing
      • Additional petroleum taxes
        • Supplementary payment
        • Export Duty
        • Research Contribution
      • Corporate income tax
      • Product pricing
      • Summary of modelled terms
  • Fiscal stability
    • Recent history of fiscal changes
    • Stability provisions
  • Economic analysis
    • Split of the barrel and share of profit
    • Effective royalty rate and maximum government share
    • Progressivity
    • Fiscal deterrence

In this report there are 34 tables or charts, including:

  • Executive summary
    • Revenue flowchart: Malaysia PSC
  • Current licence, equity and fiscal terms
    • Bonuses, rentals and fees
    • Indirect taxes
    • Cost recovery
    • R/C Index Cost Recovery Ceiling
    • Current licence, equity and fiscal terms: Table 4
    • R/C Index Contractor Share of Unused Cost Oil/Gas
    • Current licence, equity and fiscal terms: Table 5
    • R/C PSC Onshore/Shelf Contractor Profit Share
    • R/C Index Contractor Profit Share
    • Current licence, equity and fiscal terms: Table 7
    • Deepwater Contractor Profit Share Oil
    • Current licence, equity and fiscal terms: Table 8
    • Current licence, equity and fiscal terms: Table 9
    • Supplementary Payment Rate
    • Assumed terms by location - oil and gas
  • Fiscal stability
    • Timeline
    • Fiscal stability: Table 1
  • Economic analysis
    • Split of Barrel - oil
    • Split of barrel - gas
    • Share of profit - oil
    • Share of profit - gas
    • Effective royalty rate - onshore/shelf, Oil
    • Effective royalty rate - onshore/shelf, Gas
    • Effective royalty rate - deepwater, Oil
    • Effective royalty rate - deepwater, Gas
    • Maximum government share - onshore/shelf, oil
    • Maximum government share - onshore/shelf, Gas
    • Maximum government share - deepwater, Oil
    • Maximum government 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
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