Country Report

Western Sahara upstream fiscal summary

04 July 2018

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04 July 2018

Western Sahara upstream fiscal summary

Report summary

Production sharing Contract (PSC)-based fiscal regime. Signature bonuses, cost recovery ceiling and profit sharing (linked to the contractor's rate of return (IRR)) are all negotiable, while royalty rates are fixed by government. The contractors liability for income tax is paid by the state. Since the withdrawal of the Spanish colonial government in 1976 Morocco has governed Western Sahara. SADR claims that it has never been a part of the Kingdom of Morocco. Despite growing...

Executive summary
Current licence, equity and fiscal terms
- 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
  - Product pricing
  - Summary of modelled terms
Fiscal stability
- Recent history of fiscal changes
- Stability provisions
Economic analysis
- Split of the barrel and share of profit
- Effective royalty rate and maximum government share
- Progressivity
- Fiscal deterrence