Revenue Sharing Oil And Gas

These range from those that favour the derivation principle i e.

Revenue sharing oil and gas. 14 some of the foreign companies operating in the country are bp china national petroleum corporation. The rules of the game are contained in the minister of energy and mineral resources esdm regulation no. Each subnational government s share is related to the oil revenue originating in its territory to those that are more like intergovernmental transfers ahmad and mottu 2002 pp. Oil and gas revenue sharing 3 making industry and finance experts available during the early stages of a negotiation process can be very beneficial haysom and kane 2009 p.

This study provides an overview of iraq s oil and gas revenue sharing that is the revenue that the iraq national government earns from extraction and then redistributes to subnational provincial and regional governments. The percentage government revenue share at revenue points falling between the lower and higher revenue points will be interpolated on a linear scale. Revenue sharing case study. 12 2020 on gross split production sharing contracts.

Revenue share comprised idh royalties patents and fiscal co participation. See figure 1 the country s oil and gas revenue sharing arrangement is based on derivation 9 the three most populous departments also benefit from higher shares of oil and gas revenue through a separate compensatory fund. Oil and gas revenue sharing in bolivia pdf 1 07 mb oil and gas revenue sharing in bolivia infographic pdf 834 9 kb topics. The overall aim of the study was therefore to propose a revenue sharing formula and derivation fund for the oil and gas sector in uganda.

Revenue net of royalty as applicable will be shared between the contractor and the central government based on revenue accrued for oil and gas on a monthly basis the paper said. May fairly and equitably share revenue from oil and gas resources. This is important because it enables a move away from the politics of resource governance towards the technical aspects of resource. The specific objectives of the study were to.

Major recommendations such as moving to revenue sharing model from current cost recovery in order to reduce continuous cost monitoring by the government setting up of inter ministerial committee for fast decision making new gas pricing formulae for linking domestic gas price with international gas prices etc were made by the committee. Oil and gas revenue sharing in bolivia. In the oil and gas sector there are several revenue sharing models in operation around the world. I define the concept of revenue sharing and derivation funds its.