NIGERIA SO TOM E PRNCIPE JOINT DEVELOPMENT AUTHORITY

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NIGERIA SÃO TOMÉ E PRÍNCIPEJOINT DEVELOPMENT
AUTHORITY________________________________________
____________

• ECONOMICS MODELLING
• OF THE JDZ FISCAL TERMS
• CARLOS B. GOMES
• DEPUTY DIRECTOR,
• MONITORING AND INSPECTION DEPARTMENT

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CONTENTS OF PRESENTATION

• Objectives
• Summary of JDZ Fiscal Terms
• Prospect Development Assumptions
• Revenue Cash Flow Sharing
• Economics Results

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JDZ ECONOMICS MAIN OBJECTIVES

• Main objectives of the economics modelling
• Calculate pre-take and post-take economics for
  most likely developments
  
• Consider sensitivity of results to changes in key
  assumptions (e.g. oil price)
  
• Consider risked economics based on anticipated
  success rates and exploration costs
  
• Strike an equitable balance between the needs of
  the JDA and investors

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ECONOMICS MODELLING SUMMARY OF JDZ FISCAL REGIME

• The main parameters of the fiscal regime
• Biddable signature bonus (payable but not
  included in our model)
  
• Area rentals payable
• Royalty payable on sliding scale (maximum 5
  rate)
  
• Cost recovery from up to 80 of production after
  royalty
  
• Tax levied at 50 rate
• Profit Sharing linked to R factor with
  contractors share ranging from 80 (R
  25 (R 2.5)

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JDZ FISCAL REGIME FLOWCHART
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ECONOMICS MODELLING DEVELOPMENT ASSUMPTIONS
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ECONOMICS MODELLING REVENUE CASH FLOW SHARING
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ECONOMICS MODELLING REVENUE CASH FLOW SHARING
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ECONOMICS MODELLING ECONOMICS RESULTS