Timor-Leste Upstream Fiscal and Regulatory Report - Maritime Boundary Treaty Requires Transition for JPDA Contracts

Timor-Leste Upstream Fiscal and Regulatory Report - Maritime Boundary Treaty Requires Transition for JPDA Contracts

Oct 2018 GlobalData Power21 Pages Price :
$ 1500
Timor-Leste Upstream Fiscal and Regulatory Report - Maritime Boundary Treaty Requires Transition for JPDA Contracts

Summary

Timor-Lestes upstream fiscal regime has been relatively stable since the introduction of the 2005 model contract. Under PSAs, royalties are payable at a rate of 5% on gross production and after cost recovery, the remaining profit oil is shared between the licensee and the state. Licensees income is subject to corporate income tax at a rate of 30% and Supplemental Petroleum Tax. New legislation has been introduced to govern the sector in the past two years. The March 2018 signature of a new treaty between Timor-Leste and Australia establishing maritime boundaries heralds further regulatory changes.

Timor-Leste Upstream Fiscal and Regulatory Report - Maritime Boundary Treaty Requires Transition for JPDA Contracts, presents the essential information relating to the terms which govern investment into Timor-Lestes 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 states take from hydrocarbon production. Considering political, economic and industry specific variables, the report also analyses future trends for Timor-Lestes upstream oil and gas investment climate.

Scope

- Overview of current fiscal terms governing upstream oil and gas operations in Timor-Leste
- Assessment of the current fiscal regimes 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 Timor-Leste.

Reasons to buy

- Understand the complex regulations and contractual requirements applicable to Timor-Lestes upstream oil and gas sector
- Evaluate factors determining profit levels in the industry
- Identify potential regulatory issues facing investors in the countrys upstream sector
- Utilize considered insight on future trends to inform decision-making.
1 Table of Contents
1 Table of Contents 1
1.1. List of Tables 2
1.2. List of Figures 2
2. Regime Overview 3
3. State Take Assessment 5
4. Key Fiscal Terms 6
4.1. Royalties, Bonuses and Fees 6
4.1.1. Fees 6
4.1.2. Royalties 6
4.2. Cost Recovery 6
4.2.1. Limit on Recovery 6
4.2.2. Recoverable Costs 7
4.2.3. Uplift 7
4.2.4. Investment Credit (Pre-2005 JPDA Contracts) 7
4.3. Profit Sharing 7
4.4. Direct Taxation 8
4.4.1. Corporate Income Tax 8
4.4.2. Deductions and Depreciation 8
4.4.3. Supplemental Petroleum Tax (Additional Profit Tax for the Bayu Undan field) 8
4.4.4. Withholding Tax 9
4.5. Indirect Taxation 9
4.5.1. Services Tax 9
4.5.2. Value Added Tax (JPDA Only) 9
4.5.3. Import Duties and Sales Tax 9
4.6. State Participation 10
4.7. Decommissioning Fund 10
5. Regulation and Licensing 11
5.1. Legal Framework 11
5.1.1. Governing Law 11
5.1.2. Contract Type 12
5.1.3. Title to Hydrocarbons 12
5.2. Institutional Framework 13
5.2.1. Licensing Authority 13
5.2.2. Regulatory Agency 14
5.2.3. National Oil Company 14
5.3. Licensing Process 14
5.3.1. Licensing Rounds 14
5.4. License Terms 14
5.4.1. Duration and Relinquishments 14
5.4.2. Work Obligations 15
5.4.3. Domestic Market Obligation 15
5.4.4. Local Content 15
6. Outlook 16
7. Appendix 17
7.1. References 17
7.2. Contact Us 19
7.3. Disclaimer 20

1.1 List of Tables
Table 1: Regime Overview 3
Table 2: Timor Sea Joint Petroleum Development Area, Profit Sharing Framework, Pre-2005 Contracts 7
Table 3: Timor-Leste, Depreciation Rates 8
Table 4: References 17

1.2 List of Figures
Figure 1: Regime Flow Chart 4
Figure 2: Timor-Leste, Indicative NPV10/boe, IRR and State Take Comparison, Regional 5
Figure 3: Timor-Leste, Legal Framework 11
Figure 4: Timor-Leste, Institutional Framework 13

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