Upstream licences in Tunisia are awarded under two types of contracts, concessions terms and production sharing agreement terms (PSA). This report covers both the concession and PSA terms. Tunisia follows an open licensing policy, where companies can directly bid for open blocks and can apply for either a concession or a PSA. A vast majority of assets are on concession terms. Within the concession fiscal regime, royalty rates vary by project profitability from 2% to 15%. Corporate income tax rates are also linked to project profitability and vary from 50% to 75%. The national oil company has an option to take an equity interest in projects. Within the PSA regime, cost recovery ceilings and contractor profit shares are negotiated for each block. Profit sharing rates are linked to project profitability. Taxes are paid by the state on behalf of the contractor.