Fiscal Systems for Hydrocarbons Design Issues

• Main Author: Tordo, Silvana
• Format: eBook Book
• Language: English
• Published: Chicago World Bank Publications 2007; The World Bank; Washington, DC: World Bank
• Edition: 1
• Series: World Bank Working Papers
• Subjects: ACCOUNTING; ADMINISTRATIVE BURDEN; ADMINISTRATIVE FEES; ADMINISTRATIVE PROCEDURES; AMORTIZATION; ARBITRATION; BALANCE OF PAYMENTS; BENCHMARK; BID; BONDS; BORROWING; BUDGETING; CALCULATION; CALCULATIONS; CAPACITY CONSTRAINTS; CAPITAL EXPENDITURE; CAPITAL INVESTMENT; CASH FLOW; CASH FLOWS; CHAMBER OF COMMERCE; COMMODITIES; COMMODITY; COMPETITIVE MARKET; COMPETITIVENESS; COPYRIGHT CLEARANCE; COPYRIGHT CLEARANCE CENTER; CORPORATE INCOME TAXES; CORPORATE TAX; CORPORATE TAX RATE; CORPORATE TAXES; COST ASSUMPTIONS; COST OF CAPITAL; COST RECOVERY; COST SAVINGS; COST STRUCTURE; COUNTRY RISK; COUNTRY RISKS; CREDITS; CURRENCY; DECISION MAKING; DEPOSITS; DEPRECIATION; DEVELOPING COUNTRIES; DISCLOSURE OF INFORMATION; DISCOUNT RATE; DISCOUNT RATES; DISCOUNTED VALUE; DISTORTIONARY EFFECTS; DOMESTIC MARKET; EARNINGS; ECONOMIC CONDITIONS; ECONOMIC EFFICIENCY; ECONOMIC IMPACT; ECONOMIC LIFE; ECONOMIC OBJECTIVES; ECONOMIC PERFORMANCE; ECONOMIC RENT; ECONOMIC STRENGTH; ECONOMICS; EFFECTIVE USE; ENTITLEMENTS; ENVIRONMENTAL; ENVIRONMENTAL IMPACT; ENVIRONMENTAL PRACTICES; ENVIRONMENTAL TAXES; EQUILIBRIUM; EXCESS PROFITS; EXCHANGE CONTROLS; EXCHANGE RATES; EXPENDITURE; EXPENDITURES; EXPLOITATION; FAIR VALUE; FEASIBILITY STUDIES; FINANCIAL HEALTH; FINANCIAL INCENTIVE; FINANCIAL RISKS; FISCAL POLICIES; FISCAL POLICY; FLOW OF INVESTMENT; FOREIGN EXCHANGE; FOREIGN INVESTMENT; FUTURE CASH FLOW; FUTURE PRICES; FUTURE PROSPECTS; GDP; GLOBAL MARKET; GOVERNMENT GRANTS; GOVERNMENT POLICY; GOVERNMENT REVENUE; GROSS INCOME; GROSS REVENUE; HOME COUNTRIES; HOME COUNTRY; HOST GOVERNMENT; HOST GOVERNMENTS; INCENTIVE PROGRAMS; INCOME; INCOME TAX; INCOME TAXES; INEFFICIENCY; INFLATION; INSURANCE; INTANGIBLE; INTEREST RATE; INTERNAL RATE OF RETURN; INTERNATIONAL BANK; INTERNATIONAL INVESTMENT; INTERNATIONAL MARKET; INVESTING; INVESTMENT ACTIVITIES; INVESTMENT ACTIVITY; INVESTMENT DECISIONS; INVESTMENT OPPORTUNITIES; INVESTMENT PROJECTS; INVESTMENT RISK; INVESTMENT RISKS; JOB CREATION; JURISDICTIONS; LEGAL FRAMEWORK; LEGAL FRAMEWORKS; LEGAL SYSTEMS; LEGISLATION; LEVIES; LIABILITY; LOCAL INFRASTRUCTURE; MACROECONOMIC STABILITY; MARKET CONDITIONS; MARKET DEMANDS; MARKET PRICE; MARKET PRICES; MARKETING; MODEL CONTRACTS; NATURAL RESOURCES; NET WORTH; NORMAL PROFITS; OIL; Oil industry; OIL PRICE; OIL PRICES; OIL SECTOR; OPEC; OPTIMIZATION; OUTPUT; PARTICULAR COUNTRY; Petroleum industry and trade; POLICY ENVIRONMENT; POLICY MAKERS; POLITICAL RISK; POLITICAL RISKS; POLITICAL STABILITY; PORTFOLIO; POTENTIAL INVESTORS; PRESENT VALUE; PRICE INDICES; PRICE LEVELS; PRICE VARIATIONS; PRICE VOLATILITY; PRIVATE INVESTORS; PRIVATE PARTIES; PRIVATE PROPERTY; PROBABILITY; PRODUCERS; PRODUCTION RATES; PRODUCTIVITY; PROFIT SHARING; PROFITABILITY; PROFITABILITY RATIO; PROPERTY RIGHTS; PUBLIC POLICY; RATE OF RETURN; RECLAMATION; REGULATORY FRAMEWORK; REMOTE AREAS; RENEGOTIATION; RENEGOTIATIONS; RESERVE; RESERVE FUNDS; RESERVES; RESOURCE ALLOCATION; RETURN; RISK MANAGEMENT; RISK MANAGEMENT STRATEGIES; RISK PROFILE; RULE OF LAW; SALE; SALES; SAVINGS; SENIOR; SETTLEMENT; SHARE OF PROFIT; SHARE OF PROFITS; SHAREHOLDERS; STATISTICAL DATA; STREAMS; SURETIES; TAX; TAX CODE; TAX CREDIT; TAX DEDUCTIBLE; TAX LAWS; TAX LIABILITY; TAX RATES; TAX REGIME; TAX REVENUE; TAX REVENUES; TAX SYSTEM; TAX SYSTEMS; TAX YEAR; TAXABLE INCOME; TAXATION; TERMINATION; TOTAL COST; TRANSPARENCY; TREASURY; TYPE OF INVESTMENT; VALUABLE; VALUATION; VALUE ADDED; WEALTH; FISCAL SYSTEMS FOR HYDROCARBONS; TAXATION OF HYDROCARBONS; INTERNATIONAL BANK; HOST GOVERNMENT; TAX; RETURN; EXCHANGE CONTROLS; INCOME TAX; FLEXIBLE STABLE NEUTRAL FISCAL SYSTEMS; BONDS; FOREIGN EXCHANGE; HOST GOVERNMENTS; LEGAL FRAMEWORKS
• ISBN: 0821372661; 9780821372661
• DOI: 10.1596/978-0-8213-7266-1

Although host governments and investors may share one common objective - the desire for projects to generate high levels off revenue - their other goals are not entirely aligned. Host governments aim to maximize rent for their country over time, while achieving other development and socioeconomic objectives. Investors aim to ensure that the return on investment is consistent with the risk associated with the project, and with their corporations' strategic objectives. To reconcile these often conflicting objectives, more and more countries rely on transparent institutional arrangements and flexible, nuetral fiscal regimes. This paper examines the key elements of the legal and fiscal frameworks utilized in the petroleum sector and aims to outline desirable features that should be considered in the design of fiscal policy with the objective of optimizing the host government's benefits, taking into account the effect this would have on the private sector's investment.