Country Report

Timor-Leste upstream fiscal summary

Get this report


You can pay by card or invoice

Contact us

Submit your details to receive further information about this report.

For details on how your data is used and stored, see our Privacy Notice.

- Available as part of a subscription
- FAQ's about online orders

28 June 2018

Timor-Leste upstream fiscal summary

Report summary

The latest model Production Sharing Contract (PSC) was introduced in 2005, and is relatively straight-forward.  The State has the right to take an equity interest of up to 20% in any commercial discovery.  The First Tranche Petroleum (FTP) rate, cost recovery ceiling and profit oil splits are all fixed; there is an additional profits tax (called Supplemental Profits Tax) levied at 22.5% on net receipts after a project achieves a 16.5% rate of return post-corporation tax.  There is also a...

Table of contents

  • Executive summary
    • Basis
    • Licence terms
    • Government equity participation
    • Fiscal terms
      • Ring Fencing
      • Bonuses, Rentals and Fees
      • Indirect Taxes
      • Royalty
      • PSC Cost Recovery
      • PSC Profit Sharing
      • Corporate Income Tax
        • Small Field Depreciation (not included in the model):
      • Additional Profits Tax
      • 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 16 images and tables including:

  • Revenue flow chart: Timor Leste PSC
  • 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 256.07 KB