Country Report
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
-
Fiscal terms
- 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:
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