Country Report

Papua New Guinea upstream fiscal summary

10 September 2019

Get this report

$1,650

You can pay by card or invoice

Share link

Contact us

Submit your details to receive further information about this report.

First name
Last name
Email
Telephone

Region

Message

Consent

Please keep me informed about Wood Mackenzie products, services and events.

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

- FAQ's about online orders
- Find out more about subscriptions

10 September 2019

Papua New Guinea upstream fiscal summary

Report summary

Upstream licences are awarded under concession terms through direct negotiations. Royalty and Social Development Levy (SDL) are payable, both at 2% rate, on the wellhead revenue. From 2017, all projects without 'fiscal stability' clause are subject to petroleum income tax and additional profits tax, both payable at 30% rate. Fiscal stability may be secured at the contract effective date in exchange of 2% increase in petroleum income tax. The government may acquire up to 22.5% in a licence, which is carried through the development phase, with repayment from its share of revenue. From this, a 2% working interest is allocated to the landowners, who are not liable for any pre-production costs. The government must repay the associated costs back to the investor on the landholder's behalf.

Basis
Licence terms
Government equity participation
Fiscal terms
- Bonuses, rentals and fees
- Indirect taxes
- Royalty
- Base
- Rate
- Payment schedule
- Corporate income tax
- Ring fencing
- Rate
- Payment schedule
- Additional petroleum taxes
- Additional profits tax (APT)
- Ring fencing
- Rate
- Payment schedule
- Fiscal treatment of decommissioning
- 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