Published : Aug-2017
No. of Pages : 29
1 Table of Contents 1
1.1. List of Tables 3
1.2. List of Figures 3
2. Regime Overview 4
3. State Take Assessment 6
4. Key Fiscal Terms 8
4.1. Royalties, Bonuses and Fees 8
4.1.1. Annual Fees 8
4.1.2. Bonuses 8
4.1.3. Royalties 8
4.2. Cost Recovery 9
4.2.1. Limit on Recovery 9
4.2.2. Recoverable Costs 9
4.3. Profit Sharing 10
4.3.1. Model Contract Terms 10
4.3.2. Current License Terms 14
4.4. Direct Taxation 16
4.4.1. Petroleum Income Tax 16
4.4.2. Deductions and Depreciation 16
4.4.3. Minimum Alternate Tax 16
4.4.4. Additional Profits Tax 16
4.4.5. Branch Remittance Tax 16
4.4.6. Withholding Tax 17
4.4.7. Capital Gains Tax 17
4.5. Indirect Taxation 17
4.5.1. Value Added Tax 17
4.5.2. Customs Duties 17
4.6. Assignment Fees 18
4.7. Decommissioning Fund 18
4.8. State Participation 18
5. Regulation and Licensing 20
5.1. Legal Framework 20
5.1.1. Governing Law 20
5.1.2. Contract Type 20
5.1.3. Title to Hydrocarbons 21
5.2. Institutional Framework 22
5.2.1. Licensing Authority 22
5.2.2. Regulatory Agency 22
5.2.3. National Oil Company 23
5.3. Licensing Process 23
5.3.1. Licensing Rounds 23
5.3.2. Prequalification 23
5.3.3. Bidding 23
5.4. License Terms 24
5.4.1. Duration and Relinquishments 24
5.4.2. Work Obligation 24
5.5. Domestic Market Obligation 25
5.6. Local Content 25
6. Outlook 26
7. Appendix 28
7.1. Contact Us 28
7.2. Disclaimer 28
1.1 List of Tables
Table 1: Regime Overview 4
Table 2: Tanzania, Annual Charge (US$/km2), 1995, 2004, 2008 and 2013 Model Contracts 8
Table 3: Tanzania, Royalty Rates (%), 1995, 2004, 2008 and 2013 Model Contracts 9
Table 4: Tanzania, Profit Sharing Framework, 2013 Model Contract, Onshore and Continental Shelf 10
Table 5: Tanzania, Profit Sharing Framework, 2013 Model Contract, Deepwater and Lake Tanganyika 11
Table 6: Tanzania, Profit Sharing Framework, 2008 Model Contract 12
Table 7: Tanzania, Profit Sharing Framework, 2004 Model Contract, Onshore and Continental Shelf 12
Table 8: Tanzania, Profit Sharing Framework, 2004 Model Contract, Deepwater 13
Table 9: Tanzania, Profit Sharing Framework, 1995 Model Contract 13
Table 10: Tanzania, Profit Sharing Framework, Block 2 PSA 14
Table 11: Tanzania, Profit Sharing Framework, Pangani and Kilosa-Kilombero PSAs 14
Table 12: Tanzania, Profit Sharing Framework, Mnazi Bay PSA 15
Table 13: Tanzania, Profit Sharing Framework, Songo Songo Field, Natural Gas 15
Table 14: Tanzania, Withholding Tax Rates (%) 17
Table 15: Tanzania, Maximum TPDC Interest (%), 2004 Model, Onshore and Continental Shelf 18
Table 16: Tanzania, Maximum TPDC Interest (%), 2004 Model, Deepwater (Water Depth > 500m) 19
Table 17: Tanzania, Maximum TPDC Interest (%), 1995 Model 19
Table 18: Tanzania, Preferential Weighting for Domestic Contractors, Public Procurement Regulations, 2013 24
Table 19: Tanzania, Local Content, Minimum Petroleum Industry Local Employment Levels (%) 25
1.2 List of Figures
Figure 1: Regime Flow Chart 5
Figure 2: Tanzania, Indicative NPV10/boe, IRR and State Take Comparison, Internal 6
Figure 3: Tanzania, Indicative NPV10/boe, IRR and State Take Comparison, Regional 7
Figure 4: Tanzania, Legal Framework 20
Figure 5: Tanzania, Institutional Framework 22
