Country Report

Uzbekistan upstream fiscal summary

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02 March 2021

Uzbekistan upstream fiscal summary

Report summary

Most foreign companies in Uzbekistan operate under Production Sharing Contract (PSC) terms. The terms remain negotiable items on a case-by-case basis. The fiscal terms include a flat cost recovery ceiling for oil and price-based for gas and IRR-based profit share. The state (via wholly-owned Uzbekneftegaz) will normally take a 10-50% working interest in joint projects with foreign investors. 2020 tax code changes increased corporate income tax to 15% and improved loss carry forward limit to 10 years, with taxable base offset limit increased to 60% per year. Some of the main commercial risks relate to marketing of oil and gas. There is a lack of export options and operators typically have to sell oil and gas onto the domestic market where the prevailing price is very low.

Table of contents

  • Basis
  • Licence terms
  • Government equity participation
    • Bonuses, rentals and fees
    • Indirect taxes
    • Royalty
    • Ring fencing
    • Base
    • Rate
    • Payment schedule
    • PSC cost recovery
    • Base
    • Rate (cost recovery ceiling)
    • Recoverable costs
    • Unrecovered costs
    • Recovery schedule
    • PSC profit sharing
    • Base
    • Rate
    • Corporate income tax
    • Base
    • Rate
    • Payment schedule
    • Fiscal treatment of decommissioning costs
    • Product pricing
    • Liquids pricing
    • Gas 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 21 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 - onshore , oil
  • Effective royalty rate - onshore , gas
  • Maximum government share – onshore, oil
  • Maximum government share – onshore, gas
  • 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
  • Royalty rates
  • Royalty rates
  • PSC profit sharing
  • PSC profit sharing
  • Assumed terms by location - oil

What's included

This report contains:

  • Document

    Uzbekistan upstream fiscal summary

    PDF 900.28 KB