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Ecuador Upstream Fiscal and Regulatory Report - Intracampos Round to Test New PSA Terms
Summary
Ecuador has introduced a new oil production-sharing contract for investment in its upstream sector. Following the adoption of the new regime, the government has opened the XII Intracampos Licensing Round in September 2018 to gauge investor appetite for the new terms and in the medium-to-long term is planning to launch four additional rounds, the fourth of which includes gas-prospective offshore acreage. Going forward, the government is also planning to introduce gas-specific legislation in the short term.
“Ecuador Upstream Fiscal and Regulatory Report - Intracampos Round to Test New PSA Terms”, presents the essential information relating to the terms which govern investment into Ecuador’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 Ecuador’s upstream oil and gas investment climate.
Scope
Summary
Ecuador has introduced a new oil production-sharing contract for investment in its upstream sector. Following the adoption of the new regime, the government has opened the XII Intracampos Licensing Round in September 2018 to gauge investor appetite for the new terms and in the medium-to-long term is planning to launch four additional rounds, the fourth of which includes gas-prospective offshore acreage. Going forward, the government is also planning to introduce gas-specific legislation in the short term.
“Ecuador Upstream Fiscal and Regulatory Report - Intracampos Round to Test New PSA Terms”, presents the essential information relating to the terms which govern investment into Ecuador’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 Ecuador’s upstream oil and gas investment climate.
Scope
- Overview of current fiscal terms governing upstream oil and gas operations in Ecuador
- 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 Ecuador.
- Understand the complex regulations and contractual requirements applicable to Ecuador’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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1.1. List of Tables
1.2. List of Figures
2. Regime Overview
3. State Take Assessment
4. Key Fiscal Terms -Production Sharing Agreement
4.1. Bonuses and Fees
4.1.1. Payment for Use of Water and Natural Materials
4.1.2. Contribution for the Development of the National Technical Education and Scholarships
4.2. Royalties (Paid out of State Share)
4.3. Production Sharing
4.3.1. Oriente Crude Reference Price Adjustment
4.3.2. Production Volume Adjustment
4.3.3. Oil Quality Adjustment
4.4. Sovereign Adjustment
4.5. Amazon Regional Eco-Development Fund
4.6. Additional Tax on Crude Oil Pipeline Transportation - Law 40
4.7. Direct Taxation
4.7.1. Labor Participation
4.7.2. Corporate Income Tax
4.7.3. Deductions and Depreciations
4.8. Indirect Taxation
4.8.1. Value Added Tax
4.8.2. Currency Tax
4.9. Natural Gas
5. Key Fiscal Terms - Service Contracts
5.1. Initial Payments Before Remuneration
5.1.1. Sovereign Margin/Royalty
5.1.2. Amazon Regional Eco-Development Fund
5.1.3. Additional Tax on Crude Oil Pipeline Transportation - Law 40
5.2. Remuneration
5.2.1. Service Contracts with Ministry of Hydrocarbons
5.2.2. Specific Service Contracts with NOC
5.3. Additional Contributions (Contracts With Ministry Only)
5.3.1. Payment for Use of Water and Natural Materials
5.3.2. Contribution for Scholarships and Development of the National Technical Education
5.3.3. Contribution for Scientific Research
5.4. Direct Taxation
5.4.1. Labor Participation
5.4.2. Corporate Income Tax
5.4.3. Deductions and Depreciation
5.4.4. Withholding Tax
5.5. Indirect Taxation
5.5.1. Value Added Tax
5.5.2. Import Duties
5.6. Natural Gas
6. Key Fiscal Terms - NOC Regime
6.1.1. Royalty
6.1.2. Production Fees
6.1.3. Budget Remittance
7. Regulation and Licensing
7.1. Legal Framework
7.1.1. Governing Law
7.1.2. Contract Type
7.1.3. Title to Hydrocarbons
7.2. Institutional Framework
7.2.1. Licensing Authority
7.2.2. Regulatory Agency
7.2.3. National Oil Company
7.3. Licensing Process
7.3.1. 2018 XII Intracampos Licensing Round
7.3.2. Direct Awards
7.4. License Terms
7.4.1. Duration
7.4.2. Work Obligations
7.4.3. Domestic Market Obligation
7.4.4. Local Content
8. Outlook
9. Appendix
9.1. References
9.2. Contact Us
9.3. Disclaimer
1.1 List of Tables
Table 1:Regime Overview
Table 2: Ecuador, Hydrocarbon Law, Production Volume Royalty Rates
Table 3: Ecuador, XII Ronda Petrolera Intracampos, Oriente Crude Reference Price Adjustment
Table 4: Ecuador, XII Ronda Petrolera Intracampos, Coefficient k °API boundaries
Table 5: Ecuador, Corporate Income Tax Rate, 2000-Present
Table 6: Ecuador, Remuneration Fee Framework, Blocks 28, 79 and 83
Table 7: Ecuador, Remuneration Fees, Pre-November 2012 Contracts
Table 8: Ecuador, Royalty Rate, Petroamazonas
Table 9: Ecuador, XII Ronda Petrolera Intracampos, Company Bid Limit
Table 10: Ecuador, XII Ronda Petrolera Intracampos, Block Minimum Exploration Commitment
Table 11: References
1.2 List of Figures
Figure 1: Regime Flow Chart - Production Sharing Framework
Figure 2: Regime Flow Chart - Service Contract
Figure 3: Ecuador, Indicative NPV10/boe, IRR and State Take Comparison, Regional
Figure 4: Legal Framework
Figure 5: Institutional Framework
1.2. List of Figures
2. Regime Overview
3. State Take Assessment
4. Key Fiscal Terms -Production Sharing Agreement
4.1. Bonuses and Fees
4.1.1. Payment for Use of Water and Natural Materials
4.1.2. Contribution for the Development of the National Technical Education and Scholarships
4.2. Royalties (Paid out of State Share)
4.3. Production Sharing
4.3.1. Oriente Crude Reference Price Adjustment
4.3.2. Production Volume Adjustment
4.3.3. Oil Quality Adjustment
4.4. Sovereign Adjustment
4.5. Amazon Regional Eco-Development Fund
4.6. Additional Tax on Crude Oil Pipeline Transportation - Law 40
4.7. Direct Taxation
4.7.1. Labor Participation
4.7.2. Corporate Income Tax
4.7.3. Deductions and Depreciations
4.8. Indirect Taxation
4.8.1. Value Added Tax
4.8.2. Currency Tax
4.9. Natural Gas
5. Key Fiscal Terms - Service Contracts
5.1. Initial Payments Before Remuneration
5.1.1. Sovereign Margin/Royalty
5.1.2. Amazon Regional Eco-Development Fund
5.1.3. Additional Tax on Crude Oil Pipeline Transportation - Law 40
5.2. Remuneration
5.2.1. Service Contracts with Ministry of Hydrocarbons
5.2.2. Specific Service Contracts with NOC
5.3. Additional Contributions (Contracts With Ministry Only)
5.3.1. Payment for Use of Water and Natural Materials
5.3.2. Contribution for Scholarships and Development of the National Technical Education
5.3.3. Contribution for Scientific Research
5.4. Direct Taxation
5.4.1. Labor Participation
5.4.2. Corporate Income Tax
5.4.3. Deductions and Depreciation
5.4.4. Withholding Tax
5.5. Indirect Taxation
5.5.1. Value Added Tax
5.5.2. Import Duties
5.6. Natural Gas
6. Key Fiscal Terms - NOC Regime
6.1.1. Royalty
6.1.2. Production Fees
6.1.3. Budget Remittance
7. Regulation and Licensing
7.1. Legal Framework
7.1.1. Governing Law
7.1.2. Contract Type
7.1.3. Title to Hydrocarbons
7.2. Institutional Framework
7.2.1. Licensing Authority
7.2.2. Regulatory Agency
7.2.3. National Oil Company
7.3. Licensing Process
7.3.1. 2018 XII Intracampos Licensing Round
7.3.2. Direct Awards
7.4. License Terms
7.4.1. Duration
7.4.2. Work Obligations
7.4.3. Domestic Market Obligation
7.4.4. Local Content
8. Outlook
9. Appendix
9.1. References
9.2. Contact Us
9.3. Disclaimer
1.1 List of Tables
Table 1:Regime Overview
Table 2: Ecuador, Hydrocarbon Law, Production Volume Royalty Rates
Table 3: Ecuador, XII Ronda Petrolera Intracampos, Oriente Crude Reference Price Adjustment
Table 4: Ecuador, XII Ronda Petrolera Intracampos, Coefficient k °API boundaries
Table 5: Ecuador, Corporate Income Tax Rate, 2000-Present
Table 6: Ecuador, Remuneration Fee Framework, Blocks 28, 79 and 83
Table 7: Ecuador, Remuneration Fees, Pre-November 2012 Contracts
Table 8: Ecuador, Royalty Rate, Petroamazonas
Table 9: Ecuador, XII Ronda Petrolera Intracampos, Company Bid Limit
Table 10: Ecuador, XII Ronda Petrolera Intracampos, Block Minimum Exploration Commitment
Table 11: References
1.2 List of Figures
Figure 1: Regime Flow Chart - Production Sharing Framework
Figure 2: Regime Flow Chart - Service Contract
Figure 3: Ecuador, Indicative NPV10/boe, IRR and State Take Comparison, Regional
Figure 4: Legal Framework
Figure 5: Institutional Framework
Note: Product cover images may vary from those shown
