Insight
Round 5: Iraq revamps its fiscal terms
Report summary
Iraq has revamped its fiscal terms for oil and gas projects. The per barrel remuneration fee has been replaced with a biddable profit share. The new terms address several structural shortcomings with the technical service contract. However, they remain tough with a typical government share of over 95%; Iraq will struggle to attract companies with the best technologies and capabilities. For oil projects, the changes are broadly tax neutral (depending on various factors). Gas projects have been disadvantaged. Compared to the Siba project from Round 3, the effective remuneration fee is six times lower. It is hard to see dry gas projects or gas fields with high processing costs, being developed.
Table of contents
- Executive summary
- Crescent Petroleum dominates Round 5 awards
-
A new fiscal model
- How does it work?
- Value and return drivers
- Oil, NGL and dry gas pricing
-
Fit for the future?
- Three steps forward
- Three steps back
Tables and charts
This report includes 9 images and tables including:
- Blocks won
- Blocks
- Very high government share
- Cost recovery ceiling
- Split of the barrel comparison
- Varying remuneration percentage bid
- Varying cost base
- Split of the barrel, oil versus gas project
- Remuneration fee, oil versus gas comparison
What's included
This report contains:
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