South Africa upstream fiscal summary Report

Country Report 16 May 2023

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Report summary

Concession-based fiscal regime. The state has the option to participate in upstream developments, through PetroSA, with an interest of up to 10%. There is also a maximum 10% farm-in provision for Black Economic Empowerment (BEE) companies at pre-defined commercial terms. Relatively straightforward royalty/tax system although the mechanics of the royalty calculation are unusual compared to most petroleum fiscal systems. Licences are typically awarded on an ad-hoc basis and the vast majority of the active blocks were awarded through direct negotiations.

Basis
Licence terms
Government equity participation
Fiscal terms
- Bonuses, rentals and fees
- Indirect taxes
- Royalty
- Ring fencing
- Base
- Rate
- Payment schedule
- Corporate income tax
- Ring fencing
- Base
- Rate
- Payment schedule
- 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