Merak Fiscal Model Library

A world-class collection of standardized fiscal models

Congo PSC (1994)

Fiscal Term Description
Fiscal Regime Type Production Sharing Contract
Governing Legislation 1994 Hydrocarbons Code
• NOC has option to participate for up to 15% (negotiable) carried interest through exploration
State Participation and development phases.
• NOC repays Contractor for its share of exploration costs by 100% of its revenue share.
Signature Bonus Negotiable
Training Fee Negotiable
Surface Rental Fee Specified by the Council of Ministers
Royalty 15% for Oil and Gas
• 60% of Revenue after deducting Royalty is used for Cost Recovery
• Un-recovered costs are carried forward indefinitely.
Cost Recovery • Excess Cost Oil goes to the government.
• Bonuses are not cost recoverable.
• Exploration, Development and Operating Costs are expensed.
• The Contractor Income Tax is paid for by the NOC’s share of Revenue (i.e. Tax Rate = 0%).
Income Tax • If a Tax Rate is entered, the model will estimate value of Tax in Barrels for reserves (for US
companies).
Revenue remaining after Royalty and Cost Recovery is split between the Government and
Contractor according to the following sample table:
Production Contractor Share
Profit Sharing (bopd) (%)
0 – 20,000 70
20,000 – 40,000 50
> 40,000 30
Withholding Tax None.
Ring Fencing None.

Schlumberger Information Solutions

Merak Fiscal Model Library is licensed and supported by Schlumberger Information Solutions (SIS). SIS is an operating unit of Schlumberger that
provides consulting, software, information management and IT infrastructure services to support the core operational processes of the oil and gas
industry. SIS enables oil and gas companies to drive their business performance and realize the potential of the digital oilfield. SIS is on the Internet at
www.sis.slb.com 04-IS-171

April 2005 Page 1 of 1

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