Upstream licences are awarded under production sharing contract (PSC) terms which are governed by the Petroleum Taxation Law 2009 and Exclusive Economic Zone (EEZ) model contract. Licences are granted through bidding rounds or direct negotiations with companies (single licensing round was held in 2010). Royalty rates and cost recovery ceilings are fixed. Profit sharing is based on the contractors pre-tax rate of return. Corporate income tax is levied at a 30% rate on contractor's revenue less operating costs, depreciation of capital expenditures and abandonment provision. Signature bonuses and fees are payable and are the only biddable or negotiable fiscal terms…
This report includes 2 file(s)
São Tomé and Príncipe upstream fiscal summary PDF - 376.37 KB 10 Pages, 7 Tables, 11 Figures
MinMaxShare Sao Tome Principe PSC.xls XLS - 163.00 KB
Volatility in oil markets has led players in the upstream oil and gas industry to focus on reducing capital spend and operating costs. At the same time, governments need to review fiscal terms to maintain attractiveness and investment.
This country report gives an overview of the key fiscal issues for this country. If you’re interested in identifying and assessing upstream investment and expansion opportunities, this upstream fiscal summary report is your definitive commercial guide.
Potential investors, governments and companies in the oil and gas sector can use it to gain a better understanding of the critical issues for development opportunities in this country.
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Effective royalty rate and maximum government share
Maximum government share - onshore/ shelf/ deepwater oil, gas
In this report there are 18 tables or charts, including:
Revenue flowchart: São Tomé and Príncipe PSC
Current licence, equity and fiscal terms
Bonuses, rentals and fees
Current licence, equity and fiscal terms: Table 3
Current licence, equity and fiscal terms: Image 1
Fiscal treatment of decommissioning
Fiscal stability: Image 1
Fiscal stability: Table 1
Split of the barrel - oil
Split of the barrel - gas
Share of profit - oil
Share of profit - gas
Effective royalty rate - onshore/ shelf/ deepwater oil, gas
Economics analysis: Table 2
State share versus Pre-Share IRR – oil
State share versus Pre-Share IRR - gas
Investor IRR versus Pre-Share IRR - oil
Investor IRR versus Pre-Share IRR - gas
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Country report | Mar 2017
São Tomé and Príncipe upstream fiscal summary
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