Summary
“Chad Upstream Fiscal and Regulatory Report - Pressure on Government Revenue May Reduce Contractor Take for Future Licenses”, presents the essential information relating to the terms which govern investment into Chad’s upstream oil and gas sector. The report sets out in detail the contractual framework under which firms must operate in the industry, clearly defining factors affecting profitability and quantifying the state’s take from hydrocarbon production. Considering political, economic and industry specific variables, the report also analyses future trends for Chad’s upstream oil and gas investment climate.
Scope
- Overview of current fiscal terms governing upstream oil and gas operations in Chad
- Assessment of the current fiscal regime’s state take and attractiveness to investors
- Charts illustrating the regime structure, and legal and institutional frameworks
- Detail on legal framework and governing bodies administering the industry
- Levels of upfront payments and taxation applicable to oil and gas production
- Information on application of fiscal and regulatory terms to specific licenses
- Outlook on future of fiscal and regulatory terms in Chad
Reasons to buy
- Understand the complex regulations and contractual requirements applicable to Chad’s upstream oil and gas sector
- Evaluate factors determining profit levels in the industry
- Identify potential regulatory issues facing investors in the country’s upstream sector
- Utilize considered insight on future trends to inform decision-making
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1 Table of Contents
1 Table of Contents 1
1.1 List of Tables 3
1.2 List of Figures 3
2 Regime Overview 4
3 State Take Assessment 7
4 Key Fiscal Terms - Production Sharing Agreement 9
4.1 Royalties, Bonuses and Fees 9
4.1.1 Royalty 9
4.1.2 Bonuses 9
4.1.3 Surface Tax 10
4.1.4 Training Obligation 10
4.1.5 Annual Meeting Obligation 10
4.2 Cost Recovery 10
4.2.1 Limit on Recovery 10
4.2.2 Recoverable Costs 10
4.3 Profit-Sharing 11
4.4 Direct Taxation 11
4.5 Abandonment 11
4.6 State Participation 11
5 Key Fiscal Terms - Concession Agreement 12
5.1 Royalties, Bonuses and Fees 12
5.1.1 Royalty 12
5.1.2 Statistical Royalty on Exports 12
5.1.3 Surface Tax 12
5.1.4 Training and Equipment 13
5.1.5 Annual Meeting Obligation 13
5.2 Direct Taxation 13
5.2.1 Income Tax 13
5.2.2 Deductions and Depreciation 15
5.2.3 Fiscal Exemption 15
6 Regulation and Licensing 16
6.1 Legal Framework 16
6.1.1 Governing Law 16
6.1.2 Contract Type 16
6.1.3 Title to Hydrocarbons 16
6.2 Institutional Framework 17
6.2.1 Licensing Authority 17
6.2.2 Regulatory Agency 17
6.3 Licensing Process 18
6.3.1 Licensing Rounds 18
6.4 License Terms 18
6.4.1 Duration 18
6.4.2 Work Obligations 18
6.4.3 Domestic Market Obligation 18
7 Outlook 19
8 Contact Information 20
1.1 List of Tables
Table 1: Summary 4
Table 2: Chad, Signature Bonus (US$), PSA, 2016 9
Table 3: Chad, Counsel Fee (US$), PSA, 2016 9
Table 4: Chad, Surface Tax Rates (US$/km2), PSA, 2016 10
Table 5: Chad, Profit-Sharing Split (%), PSA, 2016 11
Table 6: Chad, Royalty Rates (%), Concession, 2016 12
Table 7: Chad, Surface Tax Rates (US$/km2), Concession, 2016 12
Table 8:Chad, Income Tax Rate (%), Trois Champs Fields, 2016 14
Table 9: Chad, Income Tax Rate (%), 2004 Concession, 2016 14
Table 10: Chad, Depreciation Rates (%), 2004 Concession, 2016 15
Table 11: Chad, Depreciation Rates (%), 1988 and 1999 Concession, 2016 15
1.2 List of Figures
Figure 1: Regime Flow Chart - Production Sharing Agreement 5
Figure 2: Regime Flow Chart - Concession Agreement 6
Figure 3: Chad, Indicative NPV10/boe, IRR and State Take Comparison - Internal, 2016 7
Figure 4: Chad, Indicative NPV10/boe, IRR and State Take Comparison - Regional, 2016 8
Figure 5: Chad, Legal Framework 16
Figure 6: Chad, Institutional Framework 17
