416
A. R. Tom
-100.00
-
100.00
200.00
300.00
400.00
500.00
600.00
-7.0 -5.0 -3.0 -1.0 1.0 3.0 5.0 7.0 9.0 11.0 13.0 15.0 17.0 19.0 21.0 23.0 25.0
$ mm
Years
Kingfisher & Kaiso Tonya Project - Government Revenue Profile at $60/bbl
EA1 2004 - DROP
EA3A 2004 - DROP
EA1A 2012 -DROP
PSA R-Factor
Fig. 13.3 Kingfisher and Kaiso Tonya development revenue profiles under the
different fiscal regimes
the R-factor formula and the lower DROP profit split rates are applicable
to the lower production levels.
13.4.2.4 Stability of Government Revenue
Figure 13.4 highlights the Average Effective Tax Rate (AETR) raised by
the different fiscal regimes at varying prices on the Buliisa Project. The
AETR refers to the ratio of the Government revenue receipts to the pretax net cash flow (Devereux and Griffith 2003). It is synonymous with
the term Government Take and is given by the formula;
AETR =
NPV (Gov Revenue)
NPV
Revenue − Exploration − Dev & Replacement Capex − Opex − Decomm
The DROP PSAs generate more revenue for the Government under
the study price assumptions, as prices increase the revenue generated by
the theoretical R-Factor regime increases while those generated by the
DROP level off. At US $90 per bbl, the 2012 EA1A PSA generates a
similar AETR to the theoretical R-factor regime. At prices above US
A. R. Tom
-100.00
-
100.00
200.00
300.00
400.00
500.00
600.00
-7.0 -5.0 -3.0 -1.0 1.0 3.0 5.0 7.0 9.0 11.0 13.0 15.0 17.0 19.0 21.0 23.0 25.0
$ mm
Years
Kingfisher & Kaiso Tonya Project - Government Revenue Profile at $60/bbl
EA1 2004 - DROP
EA3A 2004 - DROP
EA1A 2012 -DROP
PSA R-Factor
Fig. 13.3 Kingfisher and Kaiso Tonya development revenue profiles under the
different fiscal regimes
the R-factor formula and the lower DROP profit split rates are applicable
to the lower production levels.
13.4.2.4 Stability of Government Revenue
Figure 13.4 highlights the Average Effective Tax Rate (AETR) raised by
the different fiscal regimes at varying prices on the Buliisa Project. The
AETR refers to the ratio of the Government revenue receipts to the pretax net cash flow (Devereux and Griffith 2003). It is synonymous with
the term Government Take and is given by the formula;
AETR =
NPV (Gov Revenue)
NPV
Revenue − Exploration − Dev & Replacement Capex − Opex − Decomm
The DROP PSAs generate more revenue for the Government under
the study price assumptions, as prices increase the revenue generated by
the theoretical R-Factor regime increases while those generated by the
DROP level off. At US $90 per bbl, the 2012 EA1A PSA generates a
similar AETR to the theoretical R-factor regime. At prices above US