Malaysia upstream fiscal 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.