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

Powered by

All the vital news, analysis, and commentary curated by our industry experts.

$1500

“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 Egypt’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 Egypt’s 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 regime’s 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 Egypt’s upstream oil and gas sector

Evaluate factors determining profit levels in the industry

Identify potential regulatory issues facing investors in the country’s upstream sector

Utilize considered insight on future trends to inform decision-making

Table of Contents

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

Table

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

Figures

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

Frequently asked questions

Egypt Upstream Fiscal and Regulatory Report – Flexibility on Fiscal and Contractual Terms Likely To Continue Driving Investment Despite IOC Arrears thematic reports
Currency USD
$1,500

Can be used by individual purchaser only

$4,500

Can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company


Undecided about purchasing this report?

Enquire Before Buying

Get in touch to find out about multi-purchase discounts

reportstore@globaldata.com
Tel +44 20 7947 2745

Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.

See what our customers are saying

“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.

GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”

Business Intelligence & Marketing Manager, SAL Heavy Lift

“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”

Market Analyst & Management, Liebherr-Werk

Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.

Head of Key Accounts, Saab AB

Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.

Marketing Intelligence Manager, Portugal Foods

Our experience with GlobalData has been very good, from the platform itself to the people. I find that the analysts and the account team have a high level of customer focus and responsiveness and therefore I can always rely on. The platform is more holistic than other providers. It is convenient and almost like a one stop shop. The pricing suite is highly competitive and value for our organisation.

I like reports that inform new segments such as the analysis on generation Z, millennials, the impact of COVID 19 to our banking customers and their new channel habits. Secondly the specialist insight on affluent sector significantly increases our understanding about this group of customers. The combination of those give us depth and breadth of the evolving market.

I’m in the business of answering and helping people make decisions so with the intelligence center I can do that, effectively and efficiently. I can share quickly key insights that answer and satisfy our country stakeholders by giving them many quality studies and primary research about competitive landscape beyond the outlook of our bank. It helps me be seen as an advisory partner and that makes a big difference. A big benefit of our subscription is that no one holds the whole data and because it allows so many people, so many different parts of our organisation have access, it enables all teams to have the same level of knowledge and decision support.

Head of Customer Insight and Research, Standard Chartered

“I know that I can always rely on Globaldata’s work when I’m searching for the right consumer and market insights. I use Globaldata insights to understand the changing market & consumer landscape and help create better taste & wellbeing solutions for our customers in food, beverage and healthcare industries.

Globaldata has the right data and the reports are of very high quality compared to your competitors. Globaldata not only has overall market sizes & consumer insights on food & beverages but also provides insights at the ingredient & flavour level. That is key for B2B companies like Givaudan. This way we understand our customers’ business and also gain insight to our unique industry”

Head of Consumer Sensory Insights, Givaudan

GlobalData provides a great range of information and reports on various sectors that is highly relevant, timely, easy to access and utilise.  The reports and data dashboards help engagement with clients; they provide valuable industry and market insights that can enrich client conversations and can help in the shaping of value propositions. Moreover, using GlobalData products has helped increase my knowledge of the finance sector, the players within it, and the general threats and opportunities.

I find the consumer surveys that are carried out to be extremely beneficial and not something I have seen anywhere else. They provided an insightful view of why and which consumers take (or don’t) particular financial products. This can help shape conversations with clients to ensure they make the right strategic decisions for their business.

One of the challenges I have found is that data in the payments space is often piecemeal. With GD all of the data I need is in one place, but it also comes with additional market reports that provide useful extra context and information. Having the ability to set-up alerts on relevant movements in the industry, be it competitors or customers, and have them emailed directly to me, ensures I get early sight of industry activity and don’t have to search for news.

Senior Account Manager, TSYS
Go even deeper with GlobalData Intelligence Center

Every Company Report we produce is powered by the GlobalData Intelligence Center.

Subscribing to our intelligence platform means you can monitor developments at Egypt Upstream Fiscal and Regulatory Report – Flexibility on Fiscal and Contractual Terms Likely To Continue Driving Investment Despite IOC Arrears in real time.

  • Access a live Egypt Upstream Fiscal and Regulatory Report – Flexibility on Fiscal and Contractual Terms Likely To Continue Driving Investment Despite IOC Arrears dashboard for 12 months, with up-to-the-minute insights.
  • Fuel your decision making with real-time deal coverage and media activity.
  • Turn insights on financials, deals, products and pipelines into powerful agents of commercial advantage.