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Azerbaijan Upstream Fiscal and Regulatory Report - Stable PSA Regime Could Offer Favorable Terms for Underexplored Acreage

Azerbaijan Upstream Fiscal and Regulatory Report - Stable PSA Regime Could Offer Favorable Terms for Underexplored Acreage

Summary

“Azerbaijan Upstream Fiscal and Regulatory Report - Stable PSA Regime Could Offer Favorable Terms for Underexplored Acreage”, presents the essential information relating to the terms which govern investment into Azerbaijan’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 Azerbaijan’s upstream oil and gas investment climate.

Scope

  • Overview of current fiscal terms governing upstream oil and gas operations in Azerbaijan
  • 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 Azerbaijan
Reasons to buy
  • Understand the complex regulations and contractual requirements applicable to Azerbaijan’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


  • Regime Overview
    • Table Summary
    • Table Figure 1: Regime Flow Chart - Production Sharing Agreement
    • Table Figure 2: Regime Flow Chart - Royalty/Tax
  • State Take Assessment
    • Table Figure 3: Azerbaijan, Indicative NPV10/boe, IRR and State Take Comparison - Internal, 2015
    • Table Figure 4: Azerbaijan, Indicative NPV10/boe, IRR and State Take Comparison - Regional, 2015
  • Key Fiscal Terms - Production Sharing Agreement
    • Bonuses
      • Signature Bonus
        • Table Azerbaijan, Signature Bonuses (US$), PSAs
      • Discovery Bonus
        • Table Azerbaijan, Discovery Bonuses (US$), PSAs
      • Production Bonus
        • Table Azerbaijan, Production Bonuses (US$), PSAs
    • Acreage Fees
    • Training Fees
      • Table Azerbaijan, Minimum Annual Training Funding Contribution (US$), PSAs
    • Compensatory Petroleum
    • Cost Recovery
      • Cost Recovery Limit
      • Recoverable Costs
    • Profit-Sharing
      • Table Azerbaijan, State Share of Profit Oil (%), Shah Deniz (1996) and Shafag-Asiman (2010) PSAs
      • Table Azerbaijan, State Share of Profit Oil (%), South West Gobustan PSA, 1998
      • Table Azerbaijan, State Share of Profit Oil (%), Zigh and Hovsan PSA, 2006
      • Table Azerbaijan, State Share of Profit Oil (%), Bahar Gum Deniz, 2009
      • Table Azerbaijan, State Share of Profit Oil (%), Azeri-Chirag-Gunashli PSA (1994)
    • Direct Taxation
      • Profit Tax
        • Table Azerbaijan, Profit Tax Rates (%), PSAs
      • Deductions and Depreciation
    • Natural Gas
    • State Participation
      • Table Azerbaijan, SOCAR Participation (%), PSAs
    • Stabilization Clause
    • Indirect Taxation
      • Import and Export Tax
      • Exemption from Primary Indirect Taxes
  • Key Fiscal Terms - Royalty/Tax
    • Mining Tax
    • Direct Taxation
      • Profit Tax
      • Deductions and Depreciation
        • Table Azerbaijan, Annual Depreciation Rate (%), Fixed Assets, Profit Tax
        • Table Azerbaijan, Annual Depreciation Rate (%), Asset Repair Costs, Profit Tax
    • Indirect Taxation
      • VAT
      • Property Tax
      • Land Tax
        • Table Azerbaijan, Land Tax, Manats/100 square meters, 2016
  • Regulation and Licensing
    • Legal Framework
      • Table Figure 5: Azerbaijan, Legal Framework
      • Governing Law
      • Contract Type
      • Title to Hydrocarbons
    • Institutional Framework
      • Table Figure 6: Azerbaijan, Institutional Framework
      • Licensing Authority
      • Regulatory Agency
      • National Oil Company
    • Licensing Process
      • Direct Negotiation
    • License Terms
      • Duration
      • Obligations
    • Local Content
      • Table Azerbaijan, Minimum Target Level of Local Personnel (%), Shafag-Asiman PSA, 2010
      • Table Azerbaijan, Minimum Target Level of Local Personnel (%), Zykh and Govsany (2006) and Bahar Gum Deniz (2009) PSAs
      • Table Azerbaijan, Minimum Target Level of Local Personnel (%), ACG (1994) and Shah Deniz (1996) PSAs
  • Outlook
  • Contact Information

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