Summary
“Georgia Upstream Fiscal and Regulatory Report - Government Considering Opening Tender for Unlicensed Blocks”, presents the essential information relating to the terms which govern investment into Georgia’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 Georgia’s upstream oil and gas investment climate.
Scope
- Overview of current fiscal terms governing upstream oil and gas operations in Georgia
- 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 Georgia
Reasons to buy
- Understand the complex regulations and contractual requirements applicable to Georgia’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
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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 5
4 Key Fiscal Terms 6
4.1 Royalties, Bonuses and Fees 6
4.1.1 Bonuses 6
4.1.2 Regulatory Fee 7
4.1.3 Natural Resources Usage Fee (Paid by State) 7
4.2 Baseline Production (Blocks XIB and XIE) 7
4.3 Cost Recovery 7
4.3.1 Limit on Recovery 7
4.3.2 Recoverable Costs 7
4.4 Profit-Sharing 8
4.5 Direct Taxation 8
4.5.1 Profit Tax (Paid out of State Share of Profit Oil) 8
4.5.2 Deductions and Depreciation 8
4.5.3 Withholding Tax 8
4.6 Indirect Taxation 9
4.6.1 Value Added Tax and Customs Duty Exemption 9
4.6.2 Property Tax 9
4.7 State Participation 9
4.8 Stability Provisions 9
5 Regulation and Licensing 10
5.1 Legal Framework 10
5.1.1 Governing Law 10
5.1.2 Contract Type 10
5.1.3 Title to Hydrocarbons 10
5.2 Institutional Framework 11
5.2.1 Licensing Authority 11
5.2.2 Regulatory Agency 11
5.2.3 National Oil Company 11
5.3 Licensing Process 12
5.4 License Terms 12
5.4.1 Duration and Relinquishments 12
5.4.2 Work Obligations 12
6 Outlook 13
7 Contact Information 14
1.1 List of Tables
Table 1: Summary 3
Table 2: Georgia, Signature Bonuses (US$), 2008 Tender 6
Table 3: Georgia, Commercial Discovery Bonuses (US$ million), Selected PSAs 6
Table 4: Georgia, State Share of Profit Oil (%), Selected PSAs 8
Table 5: Georgia, State Back-In Right (%), Selected PSAs 9
1.2 List of Figures
Figure 1: Regime Flow Chart 4
Figure 2: Georgia, Indicative NPV10/boe, IRR and State Take Comparison - Regional, 2016 5
Figure 3: Georgia, Legal Framework 10
Figure 4: Georgia, Institutional Framework 11
