Israel Upstream Fiscal and Regulatory Report - Attractive Fiscal Terms Balanced by Regulatory Uncertainty and Commercialization Challenges


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Israel Upstream Fiscal and Regulatory Report - Attractive Fiscal Terms Balanced by Regulatory Uncertainty and Commercialization Challenges

Summary

Israel Upstream Fiscal and Regulatory Report - Attractive Fiscal Terms Balanced by Regulatory Uncertainty and Commercialization Challenges, presents the essential information relating to the terms which govern investment into Israels 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 Israels upstream oil and gas investment climate.

Scope

- Overview of current fiscal terms governing upstream oil and gas operations in Israel
- 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 Israel

Reasons to buy

- Understand the complex regulations and contractual requirements applicable to Israels 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 State Take Assessment 5
4 Key Fiscal Terms 6
4.1 License Fees 6
4.2 Royalty 6
4.3 Direct Taxation 6
4.3.1 Petroleum Profit Tax 6
4.3.2 Corporate Income Tax 8
4.3.3 Deductions and Depreciation 8
4.3.4 Withholding Tax 8
4.3.5 Ring-Fencing 8
4.4 Indirect Taxation 8
4.4.1 Value Added Tax 8
4.4.2 Customs Duties 8
5 Regulation and Licensing 9
5.1 Legal Framework 9
5.1.1 Governing Law 9
5.1.2 Contract Type 10
5.1.3 Title to Hydrocarbons 10
5.2 Institutional Framework 11
5.2.1 Licensing Authority 11
5.2.2 Regulatory Agency 11
5.3 Licensing Process 11
5.3.1 Licensing Rounds 12
5.3.2 Prequalification 12
5.3.3 Bidding 13
5.4 License Terms 13
5.4.1 Duration 13
5.4.2 Obligations 13
5.4.3 Domestic Market Obligation 14
6 Outlook 15
7 Contact Information 16

1.1 List of Tables
Table 1: Summary 3
Table 2: Israel, Licence Fees (NIS/1000 Dunams), Petroleum Licenses 6
Table 3: Israel, Minimum Royalty Payments, Barrels of Oil/1,000 dunams 6
Table 4: Israel, PPT Rates Until End of 2015 7
Table 5: Israel, PPT Rates From 2016 7
Table 6: Israel, CIT Rates 2006-2016 8
Table 7: Israel, Prequalification Experience Requirements, Offshore Licenses, 2006 Regulations 12
Table 8: Israel, Evaluation Criteria, Onshore Oil Licensing Round, 2012 13

1.2 List of Figures
Figure 1: Regime Flow Chart 4
Figure 2: Israel, Indicative NPV10/boe, IRR and Fiscal Take Comparison - Regional, 2016 5
Figure 3: Israel, Legal Framework 9
Figure 4: Israel, Institutional Framework 11