Published : Feb-2017
No. of Pages : 36
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 7
4. Key Fiscal Terms - Royalty/Tax 9
4.1. Subsoil Use Fees (2013 onwards) 9
4.1.1. Commodity Valuation (P) 9
4.1.2. Subsoil Use Fee Rates 9
4.1.3. Adjustment Coefficient (A)) 10
4.1.4. Reduced Rate (Only for Companies with at Least 25% State Ownership) 11
4.2. Pre-2013 Regime 12
4.2.1. Rental (Royalty) (Abolished December 31, 2012) 12
4.2.2. Subsoil Tax 15
4.2.3. Geological Tax (Abolished December 31, 2010) 16
4.3. Gas Export Duty 17
4.4. Direct Taxation 18
4.4.1. Corporate Income Tax 18
4.4.2. Deductions and Depreciation 18
4.4.3. Withholding Tax 20
4.5. Indirect Taxation 20
4.5.1. Value-Added Tax 20
4.5.2. Unified Social Contribution 20
5. Key Fiscal Terms - Production Sharing Agreements 21
5.1. Upfront Payments 21
5.1.1. Bonuses and Fees 21
5.1.2. Subsoil Use Fees 22
5.2. Cost Recovery 22
5.2.1. Limit on Recovery 22
5.2.2. Recoverable Costs 22
5.3. Profit-Sharing 22
5.3.1. Export Duty 23
5.4. Direct Taxation 23
5.4.1. Corporate Income Tax 23
5.4.2. Fiscal Stability 24
5.5. Indirect Taxation 24
5.5.1. Value-Added Tax 24
5.6. State Participation 24
6. Regulation and Licensing 25
6.1. Legal Framework 25
6.1.1. Governing Law 25
6.1.2. Contract Type 25
6.1.3. Title to Hydrocarbons 26
6.2. Institutional Framework 27
6.2.1. Licensing Authority 27
6.2.2. Regulatory Agency 27
6.2.3. National Oil Company 28
6.3. Licensing Process 28
6.3.1. Special Permit Licensing 29
6.3.2. PSA Licensing 31
6.4. License Terms 32
6.4.1. Duration 32
6.4.2. Work Obligations 32
6.4.3. Domestic Market Obligations 32
6.4.4. Local Content 32
7. Outlook 33
8. Appendix 35
8.1. Contact Us 35
8.2. Disclaimer 35
1.1 List of Tables
Table 1: Regime Overview 4
Table 2: Ukraine, Subsoil Use Fee Rates (%), 2013 - 2017 10
Table 3: Ukraine, Crude Oil Rental Rates, 2001-2012 13
Table 4: Ukraine, Condensate Rental Rates, 2001-2012 14
Table 5: Ukraine, Gas Rental Rates, 2001-2012 15
Table 6: Ukraine, Subsoil Tax, Oil, Condensate and Gas 2001-2012 16
Table 7: Ukraine, Geological Tax Rates, 1999-2012 17
Table 8: Ukraine, Corporate Income Tax, 1991-2017 18
Table 9: Ukraine, Minimum Useful Lives (years), Fixed and Non-Current Assets (other than wells), 2015 Onwards 19
Table 10: Ukraine, Pre-2015 Development Well Depreciation Schedule 20
Table 11: Ukraine, Bonuses and Fees, Yuzivska PSA 21
Table 12: Ukraine, Profit-Sharing (%), Yuzivska PSA (2013) 23
Table 13: Ukraine, Profit Sharing (%), Oleska PSA (2013) 23
Table 14: Ukraine, Special Permit Bidding Increments 30
Table 15: Ukraine, Special Permit Maximum Duration (years) 32
1.2 List of Figures
Figure 1: Regime Flow Chart - Royalty/Tax 5
Figure 2: Regime Flow Chart - Production Sharing Agreement 6
Figure 3: Ukraine, Indicative NPV10/boe, IRR and State Take Comparison, Internal 7
Figure 4: Ukraine, Indicative NPV10/boe, IRR and State Take Comparison, Regional 8
Figure 5: Ukraine, Legal Framework 25
Figure 6: Ukraine, Institutional Framework 27
