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Democratic Republic of the Congo Upstream Fiscal and Regulatory Report - Political Instability May Hamper New Licensing and Exploration

Democratic Republic of the Congo Upstream Fiscal and Regulatory Report - Political Instability May Hamper New Licensing and Exploration

Summary

The oil and gas fiscal and regulatory regime in the Democratic Republic of the Congo (DRC) has recently experienced significant change with the introduction of new legislation governing the sector in 2015-2016. However, the lack of any new contracts means that the implementation of the new regime is uncertain. While the country has significant open acreage available, environmental opposition to the government’s efforts at opening up parts of two national parks and political issues internally and with neighboring countries could hamper progress.

“Democratic Republic of the Congo Upstream Fiscal and Regulatory Report - Political Instability May Hamper New Licensing and Exploration”, presents the essential information relating to the terms which govern investment into Democratic Republic of the Congo’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 Democratic Republic of the Congo’s upstream oil and gas investment climate.

Scope

  • Overview of current fiscal terms governing upstream oil and gas operations in Democratic Republic of the Congo
  • 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 Democratic Republic of the Congo.
Reasons to buy
  • Understand the complex regulations and contractual requirements applicable to Democratic Republic of the Congo’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 Regime Overview
    • Table Figure 1: Regime Flow Chart – PSA
    • Table Figure 2: Regime Flow Chart – Offshore Concession
    • Table Figure 3: Regime Flow Chart – Onshore concession
  • State Take Assessment
    • Table Figure 4: DRC, Indicative NPV10/boe, IRR and State Take Comparison, Regional
  • Key Fiscal Terms–Production Sharing Agreements
    • Royalties, Bonuses and Fees
      • Royalties
        • Table DRC, Royalty Rates, Pre-2015 PSAs
      • Statistical Tax
      • Bonuses
        • Table DRC, Bonuses, Blocks I & II of the Graben Albertine (May 2010)
      • Surface Fees
    • Cost Recovery
      • Limit on Recovery
        • Table DRC, Cost Recovery Limit by Fiscal Zone
      • Recoverable Costs
      • Excess Cost Oil
    • Profit Sharing
      • Profit Oil
        • Table DRC, Minimum State Share of Profit Oil by Fiscal Zone
        • Table DRC, State Share of Profit-Oil, Pre-2015 PSAs
      • Super Profit Oil
    • Direct Taxation
      • Petroleum Income Tax
      • Transfer of Interest Tax
    • Indirect Taxation
      • Value Added Tax
      • Customs Duties
    • State Participation
    • Abandonment Fund
    • Fiscal Stabilization
  • Key Fiscal Terms - Concessions
    • Royalties, Bonuses and Fees
      • Bonuses
      • Royalties (Only Applicable to the Onshore Concession)
      • Statistical Tax (Only Applicable to the Offshore Concession)
    • Direct Taxation
      • Profit-Share Tax (Only Applicable to the Offshore Concession)
      • State participation tax (Only Applicable to the Offshore Concession)
      • Corporate Income Tax
      • Dividend (Only Applicable to the Onshore Concession)
      • Deductions and Depreciation
    • Indirect Taxation
      • Value Added Tax
      • Customs Duties
  • Regulation and Licensing
    • Legal Framework
      • Table Figure 5: The Democratic Republic of the Congo, Legal Framework
      • Governing Law
      • Contract Type
      • Title to Hydrocarbons
    • Institutional Framework
      • Table Figure 6: The Democratic Republic of the Congo, Institutional Framework
      • Licensing Authority
      • Regulatory Agency
      • National Oil Company
    • Licensing Process
    • License Terms
      • Duration and Relinquishments
      • Work Obligation PSAs
        • Table PSA Block Nganzi (2006)Exploration minimal works program
      • Management of Operations
    • Local Content-PSAs
  • Outlook
  • Appendix
    • References
      • Table References
    • Contact Us
    • Disclaimer

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