Country Report
Somalia upstream fiscal summary
Report summary
Petroleum operations in Somalia are regulated and taxed under three different administrative authorities: Somalia (Federal), Somaliland, and the semi-autonomous region of Puntland. Production sharing contract terms (PSCs) are awarded in all three regions having the same fiscal term elements (consisting primarily of royalties, profit share, and income tax), but rates and structure vary by regime. The federal government enacted a petroleum law in 2020, which includes a revenue sharing agreement between the government and the states. The law created the Somali National Oil Company (SONOC) and authorised the federal government to exclusively grant petroleum licenses, a prerogative which is challenged by Somaliland and Puntland. Given the continuing uncertainty, we provide a summary of licensing from the three administrative authorities.
Table of contents
-
Basis
- Somalia (Federal)
- Somaliland
- Puntland
-
Licence terms
- Somalia (Federal)
- Somaliland
- Puntland
-
Government equity participation
- Somalia (Federal)
- Somaliland
- Puntland
-
Fiscal terms
- Bonuses, rentals, and fees
- Indirect taxes
- Royalty
- Ring fencing
- Somalia (Federal)
- Payment schedule
- Somaliland
- Puntland
- Domestic Market Obligation (DMO)
- PSC cost recovery
- Ring fencing
- Somalia (Federal)
- Somaliland
- Puntland
- PSC profit sharing
- Somalia (Federal)
- Somaliland
- Puntland
- Corporate income tax
- Ring fencing
- Somalia (Federal)
- Somaliland
- Puntland
- Fiscal treatment of decommissioning costs
- Somalia (Federal)
- Somaliland and Puntland
- Product pricing
- Liquids pricing
- Natural gas pricing
- Summary of modelled terms
- Recent history of fiscal changes
- Stability provisions
-
Somalia(Federal)PSC
- Split of the barrel and share of profit
- Effective royalty rate and maximum government share
- Progressivity
- Fiscal deterrence
-
SomalilandPSC
- Split of the barrel and share of profit
- Effective royalty rate and maximum government share
- Progressivity
- Fiscal deterrence
-
PuntlandPSC
- Split of the barrel and share of profit
- Effective royalty rate and maximum government share
- Progressivity
- Fiscal deterrence
Tables and charts
This report includes 50 images and tables including:
- Timeline
- Timeline details
- Effective royalty rate - oil
- Effective royalty rate - gas
- Maximum government share – oil
- Maximum government share – gas
- 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
- Effective royalty rate - Oil
- Effective royalty rate - Gas
- Maximum government share - Oil and Gas
- 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
- 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
- Somalia (Federal)
- Indirect taxes
- Somalia (Federal) oil royalty rates
- Somalia (Federal) gas royalty rates
- Somalia (Federal) marginal and effective oil royalty rates
- Somalia (Federal) marginal and effective gas royalty rates
- Royalty rates in Puntland
- Puntland marginal and effective oil royalty rates
- Puntland marginal and effective gas royalty rates
- Somalia (Federal) profit sharing
- Somalia (Federal) - Assumed terms - oil
- Somalia (Federal) - Assumed terms - gas
- Somaliland - Assumed terms - oil and gas
- Puntland - Assumed terms - oil and gas
- Split of the barrel - oil
- Split of the barrel - gas
- Share of profit - oil
- Share of profit - gas
- Split of the barrel - oil
- Split of the barrel - gas
- Share of profit - oil
- Share of profit - gas
- Split of the barrel - oil
- Split of the barrel - gas
- Share of profit - oil
- Share of profit - gas
What's included
This report contains:
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