Upstream licences are awarded under concession terms through the annual licensing rounds. The fiscal terms are fixed by the 2013 Crown Minerals Regulations. There are two mechanisms for calculating royalty. The contractor will pay either an ad valorem royalty (AVR) of 5% of net sales revenues or an accounting profits royalty (APR) of 20% of profits, whichever is higher. Corporate income tax is payable by the contractor at a rate of 28%. The fiscal terms are amongst the lowest in the region, however there is strong conservation movement against petroleum developments. There is no mandatory state equity participation in upstream licences.