ERE Winter Seminar Series 2012: Overview: Upstream (E&P) Fiscal Regimes

A high-level overview of upstream fiscal regimes, focusing mainly on tax and royalty (T&R) and production sharing contracts (PSC), will be presented. There are more fiscal systems (contracts) than there are countries, with the expressed goal of balancing perceived risk and splitting of the potential reward. The main elements of each system will be shown, noting how the revenue pie is divided between the two competing parties: government and contractor.  An offshore development example is subjected to three fiscal regimes, illustrating how the economic results are different for the contractor and government.