Summary
“Liberia Upstream Fiscal and Regulatory Report - Regulatory Transition Begins Following Passage of Petroleum Law”, presents the essential information relating to the terms which govern investment into Liberia’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 Liberia’s upstream oil and gas investment climate.
Scope
- Overview of current fiscal terms governing upstream oil and gas operations in Liberia
- 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 Liberia
Reasons to buy
- Understand the complex regulations and contractual requirements applicable to Liberia’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 6
4 Key Fiscal Terms 8
4.1 Royalties, Bonuses and Fees 8
4.1.1 Royalties 8
4.1.2 Surface Rentals 8
4.1.3 Signature Bonuses 9
4.1.4 Production Bonuses 9
4.1.5 Hydrocarbon Development Fund 10
4.1.6 Training Budget 10
4.1.7 Social Welfare Budget 10
4.1.8 Rural Energy Fund 10
4.2 Cost Recovery 11
4.2.1 Limit on Recovery 11
4.2.2 Recoverable Costs 11
4.3 Profit-Sharing 11
4.3.1 2014 Model PSA 11
4.3.2 Pre-2014 Contracts 12
4.4 Direct Taxation 14
4.4.1 Corporate Income Tax 14
4.4.2 Deductions and Depreciation 14
4.4.3 Withholding Tax 14
4.5 Customs Duties and Fees 15
4.5.1 Customs Duties 15
4.5.2 Customs Fees 15
4.5.3 Domestic Supply 15
4.6 State and Citizen Participation 15
5 Regulation and Licensing 16
5.1 Legal Framework 16
5.1.1 Governing Law 16
5.1.2 Contract Type 16
5.1.3 Title to Hydrocarbons 16
5.2 Institutional Framework 17
5.2.1 Licensing Authority 17
5.2.2 Regulatory Agency 17
5.2.3 National Oil Company 18
5.3 Licensing Process 18
5.3.1 Licensing Rounds 18
5.3.2 Prequalification 18
5.3.3 Bidding 18
5.4 License Terms 19
5.4.1 Duration 19
5.4.2 Work Obligations 19
5.4.3 Relinquishment 19
5.5 Local Content 20
6 Outlook 21
7 Contact Information 23
1.1 List of Tables
Table 1: Summary 4
Table 2: Liberia, Royalty Rates (%), Pre-2014 Contracts 8
Table 3: Liberia, Rental Fees (US$/km2), 2014 Model PSA 9
Table 4: Liberia, Production Bonus (US$ million), 2014 Model PSA 9
Table 5: Liberia, Production Bonuses (US$ million), Pre-2014 Contracts 10
Table 6: Liberia, Profit Sharing Framework, 2014 Model PSA 11
Table 7: Liberia, Profit Sharing (%), LB-8, LB-9, LB-11, LB15, LB-16 12
Table 8: Liberia, Profit Sharing (%), LB-10 12
Table 9: Liberia, Profit Sharing (%), LB-12 13
Table 10: Liberia, Profit Sharing (%), LB-13 13
Table 11: Liberia, Profit Sharing (%), LB-14 13
Table 12: Liberia, Profit Sharing (%), LB-17 14
1.2 List of Figures
Figure 1: Regime Flow Chart 5
Figure 2: Liberia, Indicative NPV10/boe, IRR and State Take Comparison - Internal, 2016 6
Figure 3: Liberia, Indicative NPV10/boe, IRR and State Take Comparison - Regional, 2016 7
Figure 4: Liberia, Legal Framework 16
Figure 5: Liberia, Institutional Framework 17
