×

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

Namibia upstream fiscal summary

Get this report

$1,650

You can pay by card or invoice

Contact us

Submit your details to receive further information about this report.

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

- FAQs about online orders
- Find out more about subscriptions

18 May 2022

Namibia upstream fiscal summary

Report summary

Concession-based fiscal regime, governed by the 1991 Petroleum Act and based on the 2007 model contract. Royalty and Petroleum Income Tax (PIT) rates are fixed and payable by the contractor. There is an additional profits tax (APT) payable on a sliding scale, linked to contractor's rate of return. First tranche of APT is defined in the law to be 25% between rates of return 15 to 20%. The second (20-25% IRR) and third (>25% IRR) tranches are negotiable. There is no mandatory state participation, but the state oil company NAMCOR may negotiate an interest as part of the licence award process.

Table of contents

  • Basis
  • Licence terms
  • Government equity participation
    • Bonuses, rentals and fees
    • Indirect taxes
    • Royalty
    • Ring fencing
    • Base
    • Rate
    • Payment schedule
    • Additional petroleum taxes
    • Ring fencing
    • Base
    • Rate
    • Payment schedule
    • 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 20 images and tables including:

  • Timeline
  • Timeline details
  • Split of the barrel - oil
  • Split of the barrel - gas
  • Share of profit - oil
  • Share of profit - gas
  • Effective royalty rate and minimum state share - onshore/shelf/deepwater
  • Maximum government share and maximum state share - onshore
  • Maximum government share and maximum state share - shelf/deepwater
  • 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
  • APT - tranches and rates - onshore
  • APT - tranches and rates - offshore
  • APT - marginal and effective rates for Onshore
  • APT - marginal and effective rates for Offshore
  • Assumed terms by location - oil and gas

What's included

This report contains:

  • Document

    Namibia upstream fiscal summary

    PDF 969.42 KB