Cuba Upstream Fiscal and Regulatory Report - Attractive Deepwater Fiscal Regime Supported by Foreign Investment Incentives


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Cuba Upstream Fiscal and Regulatory Report - Attractive Deepwater Fiscal Regime Supported by Foreign Investment Incentives

Summary

Cuba Upstream Fiscal and Regulatory Report - Attractive Deepwater Fiscal Regime Supported by Foreign Investment Incentives, presents the essential information relating to the terms which govern investment into Cubas 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 Cubas upstream oil and gas investment climate.

Scope

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

Reasons to buy

- Understand the complex regulations and contractual requirements applicable to Cubas 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 3
1.2 List of Figures 3
2 Regime Overview 4
3 State Take Assessment 6
4 Key Fiscal Terms 7
4.1 Royalties, Bonuses and Fees 7
4.1.1 Bonuses 7
4.1.2 Training Fee 7
4.2 Cost Recovery 7
4.2.1 Limit on Recovery 7
4.2.2 Recoverable Costs 8
4.3 Profit-Sharing 8
4.3.1 Onshore 8
4.3.2 Shallow-Water 9
4.3.3 Deepwater 9
4.4 Direct Taxation 10
4.4.1 Corporate Income Tax 10
4.4.2 Deductions and Depreciation 10
4.4.3 Withholding Tax 11
4.5 Indirect Taxation 11
4.5.1 Sales and services 11
4.5.2 Import duties and taxes 11
4.6 State Participation 11
5 Regulation and Licensing 12
5.1 Legal Framework 12
5.1.1 Governing Law 12
5.1.2 Contract Type 12
5.1.3 Title to Hydrocarbons 12
5.2 Institutional Framework 13
5.2.1 Licensing Authority 13
5.2.2 Regulatory Agency 13
5.2.3 National Oil Company 13
5.3 Licensing Process 14
5.4 License Terms 14
5.4.1 Duration 14
5.4.2 Work Obligations 14
5.5 Local Content 14
6 Outlook 15
7 Contact Information 17

1.1 List of Tables
Table 1: Summary 4
Table 2: Cuba, Value-Based Cost Recovery Limit (%), Deepwater Model PSA 7
Table 3: Cuba, Cost Recovery Limit (%), Block 7 PSA, 1996 7
Table 4: Cuba, Profit-Sharing Split (%), Onshore, 2016 8
Table 5: Cuba, Profit-Sharing Split (%), Block 7, 1996 9
Table 6: Cuba, Profit-Sharing Split (%), Shallow-Water, 2016 9
Table 7: Cuba, Profit-Sharing Split (%), Deepwater, 2016 9
Table 8: Cuba, Cupet Windfall Price Benefit, Deepwater PSAs, 2016 10
Table 9: Cuba, Annual Depreciation Rates (%), Tangible Assets, 2016 10

1.2 List of Figures
Figure 1: Regime Flow Chart 5
Figure 2: Cuba, Indicative NPV10/boe, IRR, and State Take Comparison - Regional, 2016 6
Figure 3: Cuba, Legal Framework 12
Figure 4: Cuba, Institutional Framework 13