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Merak Fiscal Model Library: Benin PSC (1996)

The document describes a production sharing contract (PSC) fiscal model from Benin from 1996. It provides details on the key fiscal terms including a 15% maximum state participation after commercial discovery, a negotiable signature bonus, surface rental, and production bonus. Royalty rates are 10% for gas and 12.5% for oil. Cost recovery allows 70% of gross revenues for cost recovery, and contractor profit share is determined by negotiable production tables. Income tax is included in the state's profit share and is 0% according to the model. The document also notes that the Merak Fiscal Model Library contains standardized fiscal models and is licensed and supported by Schlumberger Information Solutions.

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101 views1 page

Merak Fiscal Model Library: Benin PSC (1996)

The document describes a production sharing contract (PSC) fiscal model from Benin from 1996. It provides details on the key fiscal terms including a 15% maximum state participation after commercial discovery, a negotiable signature bonus, surface rental, and production bonus. Royalty rates are 10% for gas and 12.5% for oil. Cost recovery allows 70% of gross revenues for cost recovery, and contractor profit share is determined by negotiable production tables. Income tax is included in the state's profit share and is 0% according to the model. The document also notes that the Merak Fiscal Model Library contains standardized fiscal models and is licensed and supported by Schlumberger Information Solutions.

Uploaded by

Tripoli Mano
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Merak Fiscal Model Library

A world-class collection of standardized fiscal models

Benin PSC (1996)


Fiscal Term Description
Fiscal Regime Type Production Sharing Contract.
Governing Legislation 1996 PSC Model Contract
State has the option to participate for a maximum of 15% after commercial discovery. Repayment
State Participation of State's costs plus interest prior to date of participation from 50% of its profit oil or gas share.
Signature Bonus Negotiable
Surface Rental Negotiable
Production Bonus Negotiable
• Gas: 10%
Royalty
• Oil: 12.5%, referred to as “Petroleum Production Tax”
• 70% of gross revenues used to recover costs
Cost Recovery
• Costs are expensed
• Contractor’s profit share is determined by the following tables (negotiable):
Oil Production Contractor’s Gas Production Contractor’s
Profit Sharing (BBL/d) Share (%) (MMCF/d) Share (%)
0 – 10,000 45 0 – 60 56
> 10,000 35 > 60 42
• Included in the state’s share of profit oil/gas (i.e. Tax Rate = 0%).
Income Tax • If a Tax Rate is entered, the model will estimate value of Tax in Barrels for reserves (for US
companies)
Withholding Tax None.
Ring Fencing None.

Schlumberger Information Solutions


Merak Fiscal Model Library is licensed and supported by Schlumberger Information Solutions (SIS). SIS is an operating unit of Schlumberger that
provides consulting, software, information management and IT infrastructure services to support the core operational processes of the oil and gas
industry. SIS enables oil and gas companies to drive their business performance and realize the potential of the digital oilfield. SIS is on the Internet at
www.sis.slb.com 04-IS-171

April 2005 Page 1 of 1

Merak Software Family

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