FISCAL TERMS, MODEL PRODUCTION SHARING AGREEMENT-2013 AND BIDDING INSTRUCTIONS 4 TH LICENCING ROUND. Kelvin Komba

Transcription

1 4 th TANZANIA LICENSING ROUND FISCAL TERMS, MODEL PRODUCTION SHARING AGREEMENT-2013 AND BIDDING INSTRUCTIONS 4 TH LICENCING ROUND Kelvin Komba Senior Principal Geophysicist TANZANIA PETROLEUM DEVELOPMENT CORPORATION 25 th OCTOBER 2013

2 PRESENTATION OUTLINE Before MPSA 2013 Fiscal Terms Terms in the MPSA 2013 Bidding Instructions Conclusion

3 Before MPSA 2013 MPSA 2008-todate MPSA 2004 MPSA 1995 MPSA 1989 CONTRACTUAL ARRANGEMENT PEPA 1980 CONCESSION ARRANGEMENT

4 TO MPSA 2013 Has attractive and competitive terms Increase of prospectivity in Tanzania MPSA 2013 Concept of a win-win situation Increase of regional exploration activities MPSA 2008-todate MPSA MPSA MPSA PSAs

5 FISCAL TERMS

6 FISCAL TERMS Licence Rentals per sq.km /yr: US.$ : IP-50, 1 ST EP 100 and 2 ND EP 200 Cost Recovery limit: 50%. Sequence: Opex, Exp and Cap/Dev. Ring fencing: Based on Exploration Licence or Development Licence

7 FISCAL TERMS Profit Sharing: Profit Sharing: To be based Tranches of daily total Production Profit Sharing: Negotiable item

8 FISCAL TERMS 4-categories on Profit-Sharing: Onshore and Shallow water- Oil case-(boe) First Tranche: 0 to 12,499; TPDC 70% Contr. 30% Onshore and Shallow water- Gas case (MMSCFD) First Tranche: 0 to 19.99; TPDC 60% Contr. 40% Deep water -Oil case-(boe) First Tranche: 0 to 49,999; TPDC 65% Contr. 35% Deep water -Gas case-(mmscfd) First Tranche: 0 to ; TPDC 60% Contr. 40%

9 FISCAL TERMS TPDC Participation: TPDC may back in during development phase TPDC will not participate on Exploration phase Negotiable but not less than 25%. Allows carry with carried interest

10 FISCAL TERMS Royalty: Off the top- Onshore/Shallow 12.5% and Offshore 7.5% Income Tax (CIT) : 30% on Taxable Income as per Income Tax 2004

11 TERMS IN THE MODEL PRODUCTION SHARING AGREEMENT 2013 (MPSA 2013)

12 MPSA 2013 Work Program (Negotiable item) Geological: Geophysical: Geochemical and others studies

13 MPSA 2013 Licence Duration: IP:4yrs-1stEP:4yrs and 2ndEP- 3yrs Relinquishment of 50% Appraisal Programme: up to 3yrs for Oil case & up to 4yrs for gas case Development period: 25yrs renewable up to 20 years In totality Activities MAY last up to 58 yrs.

14 MPSA 2013 Training Fee :Non-Negotiable US.$ 500,000 p.a. Bonuses : biddable Signature- minimum US.$ 2.5Million Production-minimum US.$ 5.0Million Decommissioning Fund : Guarantees: Bank guarantees and Parent company guarantee

15 MPSA 2013 Domestic supply Obligation: Local Content: Assignment and transfer of rights rules Third Party Access: Coordination and Unitization of Petroleum operations

16 BIDDING INSTRUCTIONS

17 BIDDING INSTRUCTIONS MANDATORY DATA PACKAGES: Mandatory BRDP for offshore blocks : US.$ 750,000 per package Mandatory BRDP for Lake Tanganyika N: US.$ 350,000 per package Mandatory 2D SPAN data is available at a cost US$ million per package

18 BIDDING INSTRUCTIONS OPTIONAL DATA PACKAGES: Optional 2D SPAN data is available at a cost US$ 750 per km The optional Phase I and Phase II data is available at a cost of US$220 per km. Proof of purchase of data when submitting bid

19 BIDDING INSTRUCTIONS National Preferences : Domestic Bidders may receive a margin of preference: Group A: domestic Bidders and joint ventures Group B: joint ventures of domestic and foreign firms Group C: bids offered by foreign contractors

20 BIDDING INSTRUCTIONS Criteria for Bid Evaluation: Preliminary examination Bid Responsiveness, Eligibility Detailed examination Work Program, Technical capability, Financial Capability, Fiscal Package, Safety, Health and Environment Protection Policy (HSE)

21 BIDDING INSTRUCTIONS Criteria of awarding points: Weightage (Points on a scale of 100): A: Work Program : 46 B: Technical capability: 10 C: Financial Capability 6 D: Fiscal Package: 34 E: Safety, Health and Environment Protection Policy (HSE): 4 Total: 100

22 BIDDING INSTRUCTIONS Bidding Document Price: A non-refundable fee of US$ 50,000 Deadline is hours local time on Thursday 15th May 2014

23 CONCLUSION FISCAL & MPSA 2013 TERMS MPSA 2013 is a dynamic document Has kept pace with regional and global changes in petroleum prospectivity Provide for future opportunity to investments

24 Thank you Asante sana