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Country Report

Sierra Leone upstream fiscal summary

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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%.

Table of contents

  • Basis
  • Licence terms
  • Government equity participation
    • Ring fencing
    • Bonuses, rentals and fees
    • Indirect taxes
    • Royalty
    • Corporate income tax
    • Additional petroleum taxes
    • Petroleum Resource Rent Tax
    • 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

Tables and charts

This report includes 17 images and tables including:

  • Timeline
  • Split of the barrel - oil
  • Split of the barrel - gas
  • Share of profit - oil
  • Share of profit - gas
  • Effective royalty rate and minimum state share
  • Maximum government share and maximum state share
  • 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
  • Bonuses, rentals and fees
  • Indirect taxes
  • Assumed terms by location - Oil and Gas

What's included

This report contains:

  • Document

    Sierra Leone upstream fiscal summary

    PDF 927.85 KB