Country report
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10 Pages

São Tomé and Príncipe upstream fiscal summary


São Tomé and Príncipe upstream fiscal summary

Report summary

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…

What's included?

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

Description

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.

Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research. Proprietary data means a superior level of analysis that is simply not available anywhere else. Wood Mackenzie is the recognised gold standard in commercial data and analysis.

  • Executive summary
  • Current licence, equity and fiscal terms
    • Licence terms
    • Government equity participation
    • Fiscal terms
      • Ring fencing
      • Royalty
      • PSC cost recovery
      • PSC profit sharing
      • Corporate income tax
  • Fiscal stability
    • Recent history of fiscal changes
    • Stability provisions
  • Economics analysis
    • Split of the barrel and share of profit
    • Effective royalty rate and maximum government share
      • Maximum government share - onshore/ shelf/ deepwater oil, gas
    • Progressivity
    • Fiscal deterrence

In this report there are 18 tables or charts, including:

  • Executive summary
    • Revenue flowchart: São Tomé and Príncipe PSC
  • Current licence, equity and fiscal terms
    • Bonuses, rentals and fees
    • Indirect taxes
    • Current licence, equity and fiscal terms: Table 3
    • Current licence, equity and fiscal terms: Image 1
    • Fiscal treatment of decommissioning
  • Fiscal stability
    • Fiscal stability: Image 1
    • Fiscal stability: Table 1
  • Economics analysis
    • 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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