Market Research Logo

Ghana Upstream Fiscal and Regulatory Report - First licensing round to test new fiscal terms

Ghana Upstream Fiscal and Regulatory Report - First licensing round to test new fiscal terms

Summary

Ghana Upstream Fiscal and Regulatory Report - First licensing round to test new fiscal terms, presents the essential information relating to the terms which govern investment into Ghana’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 Ghana’s upstream oil and gas investment climate.

Ghana's new upstream fiscal and regulatory framework faces its first major test in the country’s first open, competitive licensing round, which was announced in October 2018 and will close in May 2019. Within the first round, blocks 2, 3, and 4 are available for open, competitive tender, deepwater blocks 5 and 6 will be awarded through direct negotiations, and the shallower water Block 1 will be directly allocated by GNPC.

However, the government’s focus on the promotion of local content and participation in the sector could pose a challenge to developments.

Scope

  • Overview of current fiscal terms governing upstream oil and gas operations in Ghana
  • 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 Ghana.
Reasons to buy
  • Understand the complex regulations and contractual requirements applicable to Ghana’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
  • State Take Assessment
    • Table Figure 2: Ghana, Indicative NPV10/boe, IRR and State Take Comparison, Regional
  • Key Fiscal Terms
    • Royalties, Bonuses, and Fees
      • Signature Bonus
      • Production Bonus
      • Permit Fees
        • Table Ghana, Exploration and Development Permit Fees (US$), 2016
        • Table Ghana, Production Permit Fees (US$), 2016
      • Acreage Fees
        • Table Ghana, Annual Acreage Fees, US$/sq. km, 2018
        • Table Ghana, Annual Acreage Fees (US$/sq. km)
      • Training Allowance
        • Table Ghana, Annual Training Allowances (US$)
      • Technology Allowance
        • Table Ghana, Technology Allowance (US$)
      • Royalty
        • Table Ghana, Royalty Rates (%), Various Agreement, 2004 - 2014
    • Special Gas Provisions
    • Decommissioning Fund
    • Direct Taxation
      • Corporate Income Tax
      • Deductions and Depreciation
      • Additional Oil Entitlement
        • Table Ghana, Internal Rate of Return Thresholds and Corresponding AOE Tax Rate, 2016
        • Table Ghana, Internal Rate of Return Thresholds and Corresponding AOE Tax Rate, Shallow Water Cape Three Points Offshore License, 2014
        • Table Ghana, Internal Rate of Return Thresholds and Corresponding AOE Tax Rate, Deepwater Cape Three Points West Offshore Agreement, 2014
        • Table Ghana, Internal Rate of Return Thresholds and Corresponding AOE Tax Rate, South-West Saltpond Agreement, 2014
        • Table Ghana, Internal Rate of Return Thresholds and Corresponding AOE Tax Rate, East Keta Ultra-deepwater Agreement, 2014
        • Table Ghana, Internal Rate of Return Thresholds and Corresponding AOE Tax Rate, Keta Agreement, 2010
        • Table Ghana, Internal Rate of Return Thresholds and Corresponding AOE Tax Rate, Offshore Saltpond Agreement, 2008
        • Table Ghana, Internal Rate of Return Thresholds and Corresponding AOE Tax Rate, Shallow Water Tano Agreement, 2006
        • Table Ghana, Internal Rate of Return Thresholds and Corresponding AOE Tax Rate, Deepwater Tano Agreement, 2006
        • Table Ghana, Internal Rate of Return Thresholds and Corresponding AOE Tax Rate, Offshore Cape Three Points Agreement, 2005
        • Table Ghana, Internal Rate of Return Thresholds and Corresponding AOE Tax Rate, West Cape Three Points Agreement, 2004
      • Withholding Tax
      • Capital Gains Tax
    • Indirect Taxation
      • Value Added Tax (VAT)
      • Import Tax
      • Export Tax
    • State Participation
      • Table Ghana, GNPC Interest (%), Various Agreements, 2004 - 2014
    • Stability Clause
  • Regulation and Licensing
    • Legal Framework
      • Table Figure 3: Ghana, Legal Framework
      • Governing Law
      • Contract Type
      • Title to Hydrocarbons
    • Institutional Framework
      • Table Figure 4: Ghana, Institutional Framework
      • Licensing Authority
      • Regulatory Agency
      • National Oil Company
    • Licensing Process
      • First Licensing Round (2018)
      • Open Competitive Licensing Round (Blocks 2, 3 and 4)
      • Direct Negotiations (Blocks 5 and 6)
      • GNPC Allocation (Block 1)
    • License Terms
      • Duration and Relinquishments
      • Work Obligation
    • Local Content
      • Table Ghana, Top-level Minimum Local Content Percentages (US%), 2014
      • Table Ghana, Minimum Local Content (%) of Specific Goods and Services, 2016
    • Domestic Market Obligation
  • Outlook
  • Appendix
    • References
      • Table References
    • Contact Us
    • Disclaimer

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report