Country Report

Nicaragua upstream fiscal summary

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The fiscal system in Nicaragua is a straightforward concession system. The Ministry of Energy and Mines (MEM) imposes a domestic market obligation on contractors in order to satisfy the internal market supply of the country. The primary taxes due are an R-Factor based royalty and a flat corporate income tax. There have been no formal bid rounds since 2002 and the government has expressed openness to direct negotiation.

Table of contents

  • Basis
  • Licence terms
  • Government equity participation
    • Ring fencing
    • Bonuses, rentals and fees
    • Indirect taxes
    • Royalty
    • 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 the following images and tables:

    Split of the barrel - oilSplit of the barrel - gasShare of profit - oil
    Share of profit - gasEffective royalty rate and minimum state shareMaximum government share – oil and gasState share versus Pre-Share IRR - oilState share versus Pre-Share IRR - gasInvestor IRR versus Pre-Share IRR - oilInvestor IRR versus Pre-Share IRR - gasBonuses, rentals and feesIndirect taxes
  • 3 more item(s)...

What's included

This report contains:

  • Document

    Nicaragua upstream fiscal summary

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