Malaysia Upstream Fiscal and Regulatory Report - Fiscal Incentives Support Increased Production Target


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Malaysia Upstream Fiscal and Regulatory Report - Fiscal Incentives Support Increased Production Target

Summary

Malaysia Upstream Fiscal and Regulatory Report - Fiscal Incentives Support Increased Production Target, presents the essential information relating to the terms which govern investment into Malaysias 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 states take from hydrocarbon production. Considering political, economic and industry specific variables, the report also analyses future trends for Malaysias upstream oil and gas investment climate.

Scope

- Overview of current fiscal terms governing upstream oil and gas operations in Malaysia
- Assessment of the current fiscal regimes 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 Malaysia

Reasons to buy

- Understand the complex regulations and contractual requirements applicable to Malaysias upstream oil and gas sector
- Evaluate factors determining profit levels in the industry
- Identify potential regulatory issues facing investors in the countrys upstream sector
- Utilize considered insight on future trends to inform decision-making
1 Table of Contents
1 Table of Contents 1
1.1 List of Tables 2
1.2 List of Figures 2
2 Regime Overview 3
3 Fiscal Take Assessment 6
4 Key Fiscal Terms 7
4.1 Upfront Payments 7
4.1.1 Bonuses (Pre-1985 PSAs Only) 7
4.1.2 Royalty 7
4.2 Cost Recovery 7
4.2.1 Limit on Recovery 7
4.2.2 Recoverable Costs 7
4.2.3 Excess Cost Recovery (R/C PSA Only) 7
4.3 Profit-Sharing 8
4.3.1 Revenue over Cost PSA 8
4.3.2 Deepwater PSA 8
4.3.3 Progressive Volume Based PSA 9
4.3.4 1985 PSA 9
4.3.5 1976 PSA 9
4.4 Research Cess 10
4.5 Oil Export Duty 10
4.6 Supplementary Payment 10
4.7 Direct Taxation 10
4.7.1 Corporate Income Tax 10
4.8 Indirect Taxation 10
4.8.1 Import duties 10
4.9 Local Partner 10
5 Regulation and Licensing 11
5.1 Legal Framework 11
5.1.1 Governing Law 11
5.1.2 Contract Type 11
5.1.3 Title to Hydrocarbons 11
5.2 Institutional Framework 12
5.2.1 Licensing Authority 12
5.2.2 Regulatory Agency 12
5.2.3 National Oil Company 12
5.3 Licensing Process 13
5.4 License Terms 13
5.4.1 Duration 13
5.4.2 Work Obligations 13
6 Outlook 14
7 Contact Information 15

1.1 List of Tables
Table 1: Summary 3
Table 2: Malaysia, Cost recovery limit (%), R/C PSA 7
Table 3: Malaysia, Excess Cost Recovery Split (%), R/C PSA 8
Table 4: Malaysia, Profit-Sharing (%), R/C PSA 8
Table 5: Malaysia, Liquids Profit-Sharing (%), Deepwater PSA 9
Table 6: Malaysia, Gas Profit-Sharing (%), Deepwater PSA 9
Table 7: Malaysia, Profit-Sharing, 1985 PSA 9
Table 8: Malaysia, Supplementary Payment Rates (%), Deepwater PSA 10
Table 9: Malaysia, PSA Duration (Years), 2016 13

1.2 List of Figures
Figure 1: Regime Flow Chart-Production Sharing Agreement 4
Figure 2: Regime Flow Chart-Production Sharing Agreement 5
Figure 3: Malaysia, Indicative NPV10/boe, IRR and Fiscal Take Comparison - Internal, 2016 6
Figure 4: Malaysia ,Indicative NPV10/boe, IRR and Fiscal Take Comparison - Regional, 2016 6
Figure 5: Malaysia, Legal Framework 11
Figure 6: Malaysia, Institutional Framework 12