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Somalia Upstream Fiscal & Regulatory Guide - Government has Launched its First Offshore Licensing Round, which will continue into 2020 - ResearchAndMarkets.com

December 20, 2019 GMT

DUBLIN--(BUSINESS WIRE)--Dec 20, 2019--

The “Somalia Upstream Fiscal and Regulatory Guide” report has been added to ResearchAndMarkets.com’s offering.

Somalia offers production sharing agreements for upstream petroleum operations. Following years of instability the government has launched its First Offshore Licensing Round, which will continue into 2020. New legislation to accompany the round is awaiting enactment by parliament. If enacted, the new legislation would implement a royalty of between 5-35% and a profitability-based profit sharing mechanism. Additional legislative uncertainty remains whilst updates to the constitution are pending. Contracts signed before 1991 would be required to be renegotiated under the new terms. Any successful renegotiations are likely set the tone for future investment in the area.

Somalia Upstream Fiscal and Regulatory Guide, presents the essential information relating to the terms which govern investment into Somalia’s 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 state’s take from hydrocarbon production. Considering political, economic and industry specific variables, the report also analyses future trends for Somalia’s upstream oil and gas investment climate.

Scope

Reasons to buy

Key Topics Covered:

1. Executive Summary

1.1. Regime Overview - Production Sharing Agreement

1.2. Timeline

1.3. State Take Assessment

2. Key Terms - Production Sharing Agreements

2.1. Royalties, Bonuses and Fees

2.1.1. Signature Bonus

2.1.2. Additional Bonus

2.1.3. Surface Fees

2.1.4. Local Communities Fund

2.1.5. Training Fee

2.1.6. Administrative Fees

2.1.7. Royalties

2.2. Cost Recovery

2.2.1. Limit on Recovery

2.2.2. Recoverable Costs

2.2.3. Non-Recoverable Costs

2.3. Profit Sharing

2.4. Direct Taxation

2.4.1. Corporate Income Tax

2.4.2. Capital Gains Tax

2.4.3. Withholding Tax

2.5. Indirect Taxation

2.5.1. Value Added Tax

2.5.2. Customs Duties

2.6. State Participation

2.7. Natural Gas Discoveries

2.8. Domestic Market Obligation

2.9. Fiscal Stability

2.10. License Terms

2.10.1. Duration and Relinquishments

2.10.2. Work Obligation

2.10.3. Decommissioning Fund

3. Regulation and Licensing

3.1. Legal Framework

3.1.1. Governing Law

3.1.2. Contract Type

3.1.3. Title to Hydrocarbons

3.2. Institutional Framework

3.2.1. Licensing Authority

3.2.2. Regulatory Agency

3.2.3. National Oil Company

3.3. Licensing Process

3.3.1. Licensing Rounds

3.3.2. Bidding

3.4. Local Content

For more information about this report visit https://www.researchandmarkets.com/r/wic4f5

View source version on businesswire.com:https://www.businesswire.com/news/home/20191220005337/en/

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KEYWORD: SOMALIA AFRICA

INDUSTRY KEYWORD: OIL/GAS ENERGY

SOURCE: Research and Markets

Copyright Business Wire 2019.

PUB: 12/20/2019 09:22 AM/DISC: 12/20/2019 09:22 AM

http://www.businesswire.com/news/home/20191220005337/en