Country Report

Timor-Leste upstream fiscal summary

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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