Republic of Congo Upstream Fiscal and Regulatory Report - New Licensing Round Set to Close in June 2019

Republic of Congo Upstream Fiscal and Regulatory Report - New Licensing Round Set to Close in June 2019

Summary

Republic of Congo Upstream Fiscal and Regulatory Report - New Licensing Round Set to Close in June 2019, presents the essential information relating to the terms which govern investment into Republic of 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 Republic of Congo’s upstream oil and gas investment climate.

The fiscal and regulatory framework in the Republic of Congo underwent significant upheaval in 2016 with the passage of the new hydrocarbons code and the opening of the first licensing round. After this overhaul, in September 2018, the Republic of Congo opened Licensing Round Phase II 2018/2019, which offers 18 blocks in two basins. Investor risk may increase as a result of the Republic of Congo’s accession to OPEC, which can impose quota restrictions on the country’s oil production.

Additionally, the Republic of Congo continues to move forward with the development of its natural gas, and several projects are currently in the process of being implemented.

Scope

  • Overview of current fiscal terms governing upstream oil and gas operations in Republic of 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 Republic of Congo.
Reasons to buy
  • Understand the complex regulations and contractual requirements applicable to Republic of 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 Republic of Congo, Regime Overview
    • Table Figure 1: Republic of Congo, Regime Flow Chart Production Sharing Agreement
  • State Take Assessment
    • Table Figure 2: Republic of Congo, Indicative NPV10/boe, IRR and State Take Comparison, Regional
  • Key Fiscal Terms
    • Royalties, Bonuses, and Fees
      • Bonuses
      • Provision for Diversified Investments (PID)
      • Royalty
        • Table Republic of Congo, Special Royalty Rates for Contracts Signed Before the Hydrocarbons Code of 2016
      • Rental Fees
      • Social Projects
    • Cost Recovery
      • Cost Recovery Limit
        • Table Republic of Congo, Bid Cost Oil Provisions, Licensing Round Phase II 2018/2019
      • Recoverable Costs
      • Excess Cost Recovery
    • Profit Sharing
      • Table Republic of Congo, Profit Oil and Super Profit Oil Framework, Licensing Round Phase II 2018/2019
    • Direct Taxation
      • Corporate Income Tax
      • Deductions and Depreciation
      • Withholding Tax
      • Capital Gains (after the introduction of Hydrocarbons Code of 2016)
    • Indirect Taxation
      • Value Added Tax
      • Customs Duties
    • Environmental Risk Prevention Fund
    • Pollution Tax
    • Abandonment Costs
    • State and Local Participation
  • Regulation and Licensing
    • Legal Framework
      • Table Figure 3: Republic of Congo, Legal Framework
      • Governing Law
      • Contract Type
      • Title to Hydrocarbons
      • Title to Movable and Immovable Goods
      • Transfer of Assets
    • Institutional Framework
      • Table Figure 4: Republic of Congo, Institutional Framework
      • Licensing Authority
      • Regulatory Agency
      • National Oil Company
      • Licensee's Corporate Structure in the Republic of Congo
      • Management Committee
    • Licensing Process
      • Licensing Rounds
      • Bidding
        • Table Republic of Congo, Bid Weighting, Licensing Round Phase II 2018/2019
    • License Terms
      • Duration and Relinquishments
      • Domestic Market Obligation
    • Local Content
  • Outlook
  • Appendix
    • Fiscal Terms for Pre-2016 Contracts
      • Cost Oil Terms
        • Table Republic of Congo, Cost Recovery Limit, Excess Cost Oil Limit, and Guaranteed Cost Oil, Pre-2016 Contracts
      • Profit Oil and Super Profit Oil Terms
        • Table Republic of Congo, Profit Oil and Super Profit Oil Terms, Pre-2016 Contracts
    • References
      • Table References
    • Contact Us
    • Disclaimer

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