Nothing Special   »   [go: up one dir, main page]
Scribd Logo
Upload

Welcome to Scribd!

  • 24 views

    Merak Fiscal Model Library: Namibia R/T (1995)

    Uploaded by

    Tripoli Mano
    The document describes Namibia's fiscal regime for petroleum exploration and production from 1995. It outlines the fiscal terms including royalty rates of 5-12.5%, income tax rate of 35%, surface rental fees, training fees, and an additional profits tax on earnings over 15% return. The Merak Fiscal Model Library from Schlumberger Information Solutions provides standardized fiscal models to oil and gas companies.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Merak Fiscal Model Library: Namibia R/T (1995)

    Uploaded by

    Tripoli Mano
    24 views2 pages
    The document describes Namibia's fiscal regime for petroleum exploration and production from 1995. It outlines the fiscal terms including royalty rates of 5-12.5%, income tax rate of 35%, surface rental fees, training fees, and an additional profits tax on earnings over 15% return. The Merak Fiscal Model Library from Schlumberger Information Solutions provides standardized fiscal models to oil and gas companies.

    Original Title

    file000102

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document describes Namibia's fiscal regime for petroleum exploration and production from 1995. It outlines the fiscal terms including royalty rates of 5-12.5%, income tax rate of 35%, surface rental fees, training fees, and an additional profits tax on earnings over 15% return. The Merak Fiscal Model Library from Schlumberger Information Solutions provides standardized fiscal models to oil and gas companies.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    24 views2 pages

    Merak Fiscal Model Library: Namibia R/T (1995)

    Uploaded by

    Tripoli Mano
    The document describes Namibia's fiscal regime for petroleum exploration and production from 1995. It outlines the fiscal terms including royalty rates of 5-12.5%, income tax rate of 35%, surface rental fees, training fees, and an additional profits tax on earnings over 15% return. The Merak Fiscal Model Library from Schlumberger Information Solutions provides standardized fiscal models to oil and gas companies.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 2

    Merak Fiscal Model Library

    A world-class collection of standardized fiscal models

    Namibia R/T (1995)


    Fiscal Term Description
    Fiscal Regime Type Royalty/Tax
    Petroleum (Exploration and Production) Act (1991)
    Governing Legislation Petroleum (Taxation) Act (1991)
    Petroleum Laws Amendment Act (1998)

    State Participation None

    Signature Bonus None

    Production Bonus None

    Training Fee Negotiable

    The following is an example for the Surface Rental schedule:


    • N$60 per sq. km. of exploration area held during the first 4 years
    • N$90 per sq. km. of exploration area held during the next 2 years
    Surface Rental • N$120 per sq. km. of exploration area held during the subsequent 2 Years
    • N$150 per sq. km. of exploration area held during any third renewal period
    • N$1,500 per sq. km. of production area held
    *Surface Rental is deductible for IT and APT calculations.

    • Royalty is levied on the market value of petroleum produced


    • Royalty Rate is 5% (Default)
    Royalty
    • For existing Kudu License royalty rate is 12.5% (User can select scenario Kudu License)
    • Royalty is paid quarterly to the State Revenue Fund.

    • The petroleum income tax rate was reduced to 35% from 42% in 1998
    • Exploration and operating expenditure are expensed
    • Development expenditure is depreciated over 3 years (33.33% per annum, straight line)
    Income Tax
    • Exploration expenditure incurred by a licensee in any License Area in Namibia may be
    deducted in the computation of that licensee's taxable income after 1998
    • Income tax is calculated and paid Annually

    January 2007 Page 1 of 2


    Fiscal Term Description

    • State is entitled to a portion of Contractor’s share of Oil based on the Contractor’s After Tax
    Real Rate of Return. This is called Additional Oil Entitlement in the contract, but also applies to
    Gas. Hence we have called it an ‘Additional Profits Tax’ (APT) since it can apply to either
    product stream.
    • An incremental three-tiered APT is charged on the after-tax net cash flow.
    • The State APT (%) is negotiable and we have assumed the following terms:

    Contr AT ROR (%) State APT (%)


    >= 15.0 25 (Kudi License – 33)
    Additional Profits Tax >= 20.0 Negotiable
    >= 25.0 Negotiable

    • APT will only be paid if the petroleum operations in a License Area earn an after-tax real rate of
    return of 15%.
    • The second tier of APT become payable once the profitability level exceeds 20%
    • The third tier of APT become payable once the profitability level exceeds 25%
    • Exploration, development and operating expenditures, as well as Royalty and Petroleum
    Income Tax, are all fully deductible in the year they are paid in the computation of the APT net
    cash flow.

    Periodicity • Annual for Income Tax and Additional Profit Tax.

    Schlumberger Information Solutions


    Merak Fiscal Model Library is licensed and supported by Schlumberger Information Solutions (SIS). SIS is an operating unit of Schlumberger that
    provides consulting, software, information management and IT infrastructure services to support the core operational processes of the oil and gas
    industry. SIS enables oil and gas companies to drive their business performance and realize the potential of the digital oilfield. SIS is on the Internet at
    www.sis.slb.com 04-IS-171

    January 2007 Page 2 of 2

    Merak Software Family

    You might also like