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7 Pages

The View through the Cost Recovery Ceiling

The View through the Cost Recovery Ceiling

Report summary

The cost recovery ceiling and its mechanism in 78 Production Sharing Contract regimes has been analysed to understand whether the terms are sufficient to ensure an attractive investment environment or one that poses potential risks to investors.

What's included?

This report includes 1 file(s)

  • The View through the Cost Recovery Ceiling PDF - 551.08 KB 7 Pages, 0 Tables, 6 Figures


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  • "Don't jump high in a room with a low ceiling" (Czech proverb)
    • Impact of royalty payment on cost recovery
    • Fixed ceiling or sliding scale
    • Provision on investment credit or uplift and interest on carry forward costs
    • Cross-flow and Cost recovery ring-fence
    • PSC regimes which may be conducive for reinvestment:
    • PSC regimes which may pose risks to investors:

In this report there are 6 tables or charts, including:

  • "Don't jump high in a room with a low ceiling" (Czech proverb)
    • Chart 1 - Cost recovery ceiling (standard terms) comparison
    • Chart 2 - Costs and cost recovery profile for Benin PSC and Suriname PSC
    • The View through the Cost Recovery Ceiling: Image 3
    • The View through the Cost Recovery Ceiling: Image 4
    • Chart 3- Effective cost recovery ceiling (net of royalty) comparison
    • Chart 4 - Cost recovery payback period comparison (number of years from first production)
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