Country Report
Nepal upstream fiscal summary
Report summary
Upstream licences in Nepal are awarded though licensing rounds under production sharing contract terms (PSCs). Within the PSC regime, there is no cost recovery ceiling and no government equity participation. Profit sharing is based upon production rates, ranging from 10% to 80% for oil and from 0% to 70% for gas in government's favor. Royalty is payable at a rate of 12.5% on gross production. Corporate income tax is payable by the contractor at a rate of 30%.
Table of contents
- Basis
- Licence terms
- Government equity participation
-
Fiscal terms
- Ring fencing
- Bonuses, rentals and fees
- Indirect taxes
- Royalty
- PSC cost recovery
- PSC profit sharing
- Corporate income tax
- 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 19 images and tables including:
- 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
- Maximum government share - Oil
- Maximum government share - 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
- Profit sharing - Oil
- Profit Sharing - Gas
- Contractor Profit Share Oil
- Contractor Profit Share Gas
- Assumed terms by location - oil
- Assumed terms by location - gas
What's included
This report contains:
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