Upstream licences are awarded through licensing rounds under concession terms for onshore and production sharing contract terms (PSCs) for offshore projects. There is no direct state participation in offshore projects; state participation for onshore projects is not mandatory, varying between 15% to 25% for local partner. Major components of both concession and PSC terms include royalty, corporate income tax,windfall levy, workers participation fund (WPF) and workers welfare fund (WWF) contributions. Under PSC terms, cost recovery ceiling is set to 85% of gross revenue. Profit-sharing is linked to cumulative production levels. All parameters are fixed and not biddable.