×

We are excited to announce that as of February 1, Wood Mackenzie is a portfolio company of Veritas Capital, a leading investor at the intersection of technology and government. Our focus remains on providing you with the best intelligence, analytics, data and tools to ensure you are making the best data-driven business decisions with confidence.  

Read more in our news release here. 

Country Report

Malaysia upstream fiscal summary

Get this report

$1,650

You can pay by card or invoice

For details on how your data is used and stored, see our Privacy Notice.
 

- FAQs about online orders
- Find out more about subscriptions

25 May 2023

Malaysia upstream fiscal summary

Report summary

From 2018, all exploration licences are governed by Revenue/Cost index (R/C) production sharing contracts. 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%. Enhanced Profitability Terms (EPT) were introduced as part of 2021 licensing round for shallow-water exploration blocks. The fiscal items include fixed cost recovery ceiling of 70%, two R/C thresholds with improved rates and linear interpolation in between. Supplementary payment is not applicable. In 2020, Malaysia introduced revenue-sharing contracts, Small Field Asset (SFA) and Late Life Asset (LLA) PSCs. Both include royalty at 10% and biddable contractor revenue split. Supplementary payment, research cess are not applicable.

Table of contents

  • 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)
    • Recoverable costs
    • Unrecovered costs
    • Excess cost recovery
    • PSC profit sharing
    • Base
    • Rate
    • Payment schedule
    • Additional petroleum taxes
    • Ring fencing
    • Export duty
    • Base
    • Rate
    • Payment schedule
    • Supplementary payment
    • Base
    • 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 34 images and tables including:

  • Timeline
  • Split of Barrel - oil
  • Split of Barrel - gas
  • Share of profit - oil
  • Share of profit - gas
  • Effective royalty rate and minimum state share - onshore, oil
  • Effective royalty rate and minimum state share - onshore, gas
  • Effective royalty rate and minimum state share - shelf, oil
  • Effective royalty rate and minimum state share - 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, oil
  • Maximum government share and maximum state share - onshore, gas
  • Maximum government share and maximum state share - shelf, oil
  • Maximum government share and maximum state share - 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
  • Bonuses, rentals and fees
  • Indirect taxes
  • Cost recovery ceiling (oil and gas) - split by location
  • Cost recovery ceiling (oil and gas) - split by location
  • Contractor share of unused cost oil/gas - split by location
  • Contractor share of unused cost oil/gas - split by location
  • Contractor profit share (oil and gas) - split by location
  • Contractor profit share (oil and gas) - split by location
  • Deepwater supplementary payment rate
  • Deepwater supplementary payment rate
  • Depreciation schedule
  • Assumed terms by location - oil and gas

What's included

This report contains:

  • Document

    Malaysia upstream fiscal summary

    PDF 1006.14 KB