Turkmenistan Upstream Fiscal and Regulatory Report – Role of New NOC Remains Unclear

Pages: 13 Published: April 01, 2016 Report Code: GDGE0076UFR

“Turkmenistan Upstream Fiscal and Regulatory Report – Role of New NOC Remains Unclear”, presents the essential information relating to the terms which govern investment into Turkmenistan’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 Turkmenistan’s upstream oil and gas investment climate.


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

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 Turkmenistan

Reasons to Buy

Understand the complex regulations and contractual requirements applicable to Turkmenistan’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 Fiscal Take Assessment 5

4 Key Fiscal Terms 6

4.1 Upfront Payments 6

4.1.1 Bonuses 6

4.1.2 Annual License Fee 6

4.1.3 Royalty 6

4.1.4 Additional Contributions 6

4.2 Cost Recovery 6

4.2.1 Limit on Recovery 6

4.2.2 Recoverable Costs 7

4.3 Profit-Sharing 7

4.4 Direct Taxation 8

4.4.1 Profit Tax 8

4.4.2 Deductions and Depreciation 8

4.4.3 Withholding Tax 8

4.5 Indirect Taxation 8

4.5.1 Custom duties 8

4.5.2 Value Added Tax 8

5 Regulation and Licensing 9

5.1 Legal Framework 9

5.1.1 Governing Law 9

5.1.2 Contract Type 9

5.1.3 Title to Hydrocarbons 9

5.2 Institutional Framework 10

5.2.1 Licensing Authority 10

5.2.2 Regulatory Agency 10

5.2.3 National Oil Company 10

5.3 Licensing Process 11

5.4 License Terms 11

5.4.1 Duration 11

5.4.2 Obligations 11

5.4.3 Relinquishment 11

5.4.4 Title to Equipment 11

6 Outlook 12

7 Contact Information 13

List of Tables

1.1 List of Tables

Table 1: Summary 3

Table 2: Turkmenistan, Royalty rates, Nebit Dag PSA 6

Table 3: Turkmenistan, Royalty rates 1996, Block 1 PSA 6

Table 4: Profit-Sharing (%), Block 1 PSA 7

Table 5: Turkmenistan, Profit-Sharing (%), Nebit Dag PSA 7

List of Figures

1.2 List of Figures

Figure 1: Regime Flow Chart 4

Figure 2: Turkmenistan, Indicative NPV10/boe, IRR and Fiscal Take Comparison – Regional, 2016 5

Figure 3: Turkmenistan Legal Framework 9

Figure 4: Turkmenistan, Institutional Framework 10


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