Global petroleum fiscal systems compared by contractor take

Journal Article · Mon Dec 12 04:00:00 EST 1994 · Oil and Gas Journal; (United States)

OSTI ID:7016489

Johnston, D ^[1]

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1. Daniel Johnston and Co. Inc., Dallas, TX (United States)

Petroleum fiscal terms in most countries are tougher than in the US, but these countries have more geological potential and still may be economically attractive. The market for exploration capital and technology is super competitive and getting more sophisticated. Governments are increasingly aware of the global market for exploration acreage or rehabilitation projects. For many oil companies, an important part of the negotiations is to secure terms acceptable to the potential partner. Knowing the market and what terms are realistic depends on a region's potential and other factors. Most countries developing petroleum fiscal systems are opting for the production sharing contract (PSC). This trend began in the 1960s. Now, nearly half of the countries with petroleum potential have a system based on the PSC. However, financial results could be the same in a royalty/tax arrangement. Economics depend primarily on division of profits or what is known as government/contractor take. The paper discusses contractor take, estimating take, Indonesian split, and take implications.

• OSTI ID: 7016489
• Journal Information: Oil and Gas Journal; (United States), Journal Name: Oil and Gas Journal; (United States) Vol. 92:50; ISSN OIGJAV; ISSN 0030-1388
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
Industrial
& Business Aspects
ASIA
DEVELOPING COUNTRIES
ECONOMIC POLICY
ECONOMICS
EXPLORATION
GEOLOGIC DEPOSITS
GLOBAL ASPECTS
GOVERNMENT POLICIES
INCOME
INDONESIA
ISLANDS
LEASING
MINERAL RESOURCES
PETROLEUM DEPOSITS
RESOURCES
ROYALTIES
TAXES