Aug 12, 2021   SOURCE: BusinessWire

Egypt Upstream Oil and Gas Fiscal and Regulatory Report 2021 - ResearchAndMarkets.com

The "Egypt Upstream (Oil and Gas) Fiscal and Regulatory Guide" report has been added to ResearchAndMarkets.com's offering.

"Egypt Upstream (Oil and Gas) Fiscal and Regulatory Guide", presents the essential information relating to the terms which govern investment into Egypt'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 Egypt's upstream oil and gas investment climate.

Egypt offers upstream acreage in the form of production sharing agreements (PSAs) and in some cases through service contracts. Several blocks have been awarded during the last few years due to a renewed investment interest after significant Mediterranean gas discoveries, improved gas pricing, and wider energy sector reforms.

Supermajors such as BP, ENI, and Shell have strengthened their presence in the country while ExxonMobil and Chevron are few of the new entrants. Following the success of recent licensing rounds, EGPC and EGAS have launched a new bid round between March-August 2021, offering 24 blocks in the Mediterranean Sea, Gulf of Suez and Western Desert.

Although, Egypt's fiscal terms are generally more burdensome than those offered in neighboring Israeli, Cypriot and Greek waters, this is counterbalanced by the benefits of Egypt's more developed sector, such as infrastructure availability and strong local gas demand. The fiscal terms remain more attractive than those offered in neighboring Libya and slightly better than in Sudan.

The restart of Damietta's LNG plant in 2021 after nine years will enhance further Egypt's export LNG capacity and flexibility. Although, regional maritime border disputes in the East Mediterranean are ongoing, the deal between Egypt and Greece in 2020, the cancellation of Turkey-GNA Libya's agreement in early 2021 and the political reproachment between Turkey and Greece can favour regional cooperation.

Scope

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

Key Topics Covered:

1. Executive Summary

1.1 Regime Overview - Production Sharing Agreements (PSAs)

1.2 Regime Overview - Service Contracts

1.3 Timeline

2. State Take Assessment

3. Key Fiscal Terms - Production Sharing Agreements

3.1 Royalties, Bonuses, and Fees

3.2 Cost Recovery

3.3 Profit Sharing

3.4 Direct Taxation

3.5 Domestic Market Obligations

3.6 Local Content

4. Key Fiscal Terms - Service Contracts

4.1 Royalties, Bonuses, and Fees

4.2 Baseline Service Fee

4.3 Renumeration

4.4 Direct Taxation

5. Regulation and Licensing

5.1 Legal Framework

5.2 Institutional Framework

5.3 Licensing Process

6. Appendix

For more information about this report visit https://www.researchandmarkets.com/r/6cjbrl