Kenya Upstream Fiscal and Regulatory Guide
Summary
Kenya offers production sharing agreements for upstream petroleum operations. In 2019, the government introduced new legislation governing the sector, which includes the introduction of a profitability-based profit sharing mechanism and also shifts the tax liability on to licensees for new contracts signed. Previously the state paid licensee's tax obligations through its share of profit oil. Further amendments to the framework including changes to the Income Tax Act are planned in the short term and following this, a licensing round is planned 2021.
“Kenya Upstream Fiscal and Regulatory Guide”, presents the essential information relating to the terms which govern investment into Kenya’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 Kenya’s upstream oil and gas investment climate.
Scope
Reasons to buy
Summary
Kenya offers production sharing agreements for upstream petroleum operations. In 2019, the government introduced new legislation governing the sector, which includes the introduction of a profitability-based profit sharing mechanism and also shifts the tax liability on to licensees for new contracts signed. Previously the state paid licensee's tax obligations through its share of profit oil. Further amendments to the framework including changes to the Income Tax Act are planned in the short term and following this, a licensing round is planned 2021.
“Kenya Upstream Fiscal and Regulatory Guide”, presents the essential information relating to the terms which govern investment into Kenya’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 Kenya’s upstream oil and gas investment climate.
Scope
- Overview of current fiscal terms governing upstream oil and gas operations in Kenya
- 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 Kenya
Reasons to buy
- Understand the complex regulations and contractual requirements applicable to Kenya’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
Table of Contents
1. Executive Summary
2. Key Terms - Production Sharing Agreements
3. Regulation and Licensing
4. Appendix
List of Tables
List of Figures
