Country Report

Timor-Leste upstream fiscal summary

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18 November 2019

Timor-Leste upstream fiscal summary

Report summary

All upstream licences in Timor-Leste are awarded through licensing rounds under production sharing contract terms (PSCs). The terms are set for each licensing round, and include royalty of 5%, no cost recovery ceiling and contractor’s profit share of 60%. Other non-biddable items include a supplemental profits tax paid of 22.5% and corporate income tax of 30%. The State has an option to take up to 20% stake in any development. In August 2019, Timor-Leste resolved maritime border dispute with Australia and removed Joint Petroleum Development Area (JPDA).The JPDA was ceded to Timor-Leste.

Table of contents

  • Basis
  • Licence terms
  • Government equity participation
    • Bonuses, rentals and fees
    • Royalty
    • Ring fencing
    • Base
    • Rate
    • Payment schedule
    • PSC production sharing
    • Ring fencing
    • PSC cost recovery
    • Base
    • Rate (cost recovery ceiling)
    • Recoverable costs
    • Unrecovered costs
    • Excess cost recovery
    • PSC profit sharing
    • Base
    • Rate
    • Payment schedule
    • Corporate income tax
    • Ring fencing
    • Base
    • Rate
    • Payment schedule
    • Supplemental profits tax
    • Ring fencing
    • Base
    • Rate
    • Payment schedule
    • Fiscal treatment of decommissioning
    • Product pricing
  • 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 15 images and tables including:

  • Timeline
  • Timeline details
  • 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

    Timor-Leste upstream fiscal summary

    PDF 899.52 KB

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