Upstream petroleum licences are awarded under concession terms, governed by the Petroleum (Exploration and Production) Act 2011 and the Extractive Industries Revenue Act 2018. Petroleum licences may be awarded through bids submitted via competitive bid rounds or direct negotiations. The state is entitled to an initial carried interest of at least 10%. Royalty rates are 10% for oil and 5% for gas. The income tax rate is 30% for petroleum operations. A Petroleum Resource Rent Tax (PRRT) is payable at 40% over the IRR threshold of 15%.