Egypt Upstream Fiscal and Regulatory Report - Flexibility on Fiscal and Contractual Terms Likely To Continue Driving Investment Despite IOC Arrears


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Egypt Upstream Fiscal and Regulatory Report - Flexibility on Fiscal and Contractual Terms Likely To Continue Driving Investment Despite IOC Arrears

Summary

Egypt Upstream Fiscal and Regulatory Report - Flexibility on Fiscal and Contractual Terms Likely To Continue Driving Investment Despite IOC Arrears, presents the essential information relating to the terms which govern investment into Egypts 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 Egypts upstream oil and gas investment climate.

Scope

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

Reasons to buy

- Understand the complex regulations and contractual requirements applicable to Egypts 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 6
4 Key Fiscal Terms - Production Sharing Agreements 7
4.1 Bonuses 7
4.1.1 Signature Bonus 7
4.1.2 Production Bonus 7
4.1.3 Training Bonus 8
4.1.4 Assignment Bonus 8
4.1.5 Exploration Area Retention Bonus 8
4.1.6 Development Lease Bonus 8
4.2 Royalty 8
4.3 Cost Recovery 9
4.3.1 Cost Recovery Limit 9
4.3.2 Recoverable Costs 9
4.3.3 Excess Cost Recovery 9
4.4 Profit Sharing 10
4.4.1 EGPC Agreements 10
4.4.2 EGAS Agreements 12
4.4.3 GANOPE Agreements 14
4.5 Direct Taxation 15
4.5.1 Income Tax 15
4.5.2 Deductions and Depreciation 15
4.6 Customs Duties 16
5 Key Fiscal Terms - Service Contract 16
5.1 Signature Bonus 16
5.2 Tariff Fee 16
5.3 Baseline Service Fee 16
5.4 Production Remuneration 16
5.5 Direct Taxation 17
5.5.1 Corporate Income Tax 17
6 Regulation and Licensing 18
6.1 Legal Framework 18
6.1.1 Governing Law 18
6.1.2 Contract Type 18
6.1.3 Title to Hydrocarbons 19
6.2 Institutional Framework 19
6.2.1 Licensing Authority 20
6.2.2 National Oil Company 20
6.2.3 Regulatory Agency 20
6.3 Licensing Process 20
6.3.1 Qualification 20
6.3.2 Bidding 20
6.4 License Terms 20
6.4.1 Duration and Relinquishment 20
6.4.2 Exploration Obligation 20
6.4.3 Management of Operations 21
6.4.4 Domestic Market Obligation 21
7 Outlook 22
8 Contact Information 23

1.1 List of Tables
Table 1: Summary 3
Table 2: Egypt, Production Bonuses, Recent Bidding Rounds 2014-2016 7
Table 3: Egypt, Production Bonuses (US$ million), EGPC Concessions 8
Table 4: Egypt, Cost Recovery Rates (%), Various Concessions 9
Table 5: Egypt, Minimum NOC Share of Excess Cost Recovery Rates (%), Bid Rounds 2014 -2016 9
Table 6: Egypt, Blocks Under Minimum Excess Cost Recovery Rates, EGAS Bid Rounds 2012 and 2013 10
Table 7: Egypt, Production Sharing Framework (% Contractor Share), Crude Oil and Condensate, EGPC 2016 Licensing Round 10
Table 8: Egypt, Production Sharing Framework (% Contractor Share), Gas and LPG, EGPC 2016 Licensing Round 10
Table 9: Egypt, EGPC Profit Sharing Framework, El Ras Qattara Concession, 2004 11
Table 10: Egypt, EGPC Model Contract Profit Sharing Framework, 2003 and 2004 11
Table 11: Egypt, EGPC Profit Sharing Framework, NW Gemsa Concession, 2002 11
Table 12: Egypt, EGPC Profit Sharing Framework, Burg El Arab, Concession, 1990 12
Table 13: Egypt, Production Sharing Framework (% Contractor Share), EGAS 2015 Licensing Round 13
Table 14: Egypt, EGAS Profit Sharing Framework, Gas and LPG, South Dissouq Concession, 2014 13
Table 15: Egypt, Production Sharing Framework (% Contractor Share), Shorouk Offshore Area, EGAS 2012 Licensing Round 14
Table 16: Egypt, EGAS Profit Sharing Framework, North El Maghara Concession, 2007 14
Table 17: Egypt, Production Sharing Framework (% Contractor Share), GANOPE 2014 Licensing Round 15
Table 18: Egypt, Production Sharing Framework (% Contractor Share), Gas and LPG, GANOPE 2014 Licensing Round 15
Table 19: Egypt, Tariff Fee, EGPC West Gharib Block H Service Contract 16
Table 20: Egypt, GPC Incremental Production Allocation (%), Area A Service Contract 17

1.2 List of Figures
Figure 1: Regime Flow Chart - Production Sharing Agreement 4
Figure 2: Regime Flow Chart - Service Contract 5
Figure 3: Egypt, Indicative NPV10/boe, IRR and State Take Comparison - Internal, 2016 6
Figure 4: Egypt, Indicative NPV10/boe, IRR and State Take Comparison - Regional, 2016 6
Figure 5: Egypt, Legal Framework 18
Figure 6: Egypt Institutional Framework 19