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E&P companies paying governments USD 19tn

07th July 2014

Rystad Energy has estimated that exploration and production companies paid around USD 1.9 trillion globally to governments during 2013

E&P companies paying governments USD 19tn
Among the non-OPEC countries, Russia and the US are the two countries with highest tax collection from the exploration and production industry

This represents about 50 per cent of the total revenues generated from the exploration and production industry.

In 2013 governments experienced the effects of lower oil prices and higher costs levels. In total, cash flow to the government was down 5 per cent in 2013 compared to 2012.

Among the non-OPEC countries, Russia and the US are the two countries with highest tax collection from the exploration and production industry with USD 180 and 135bn, respectively. Norway was the fifth largest country with a total income of USD 67bn.

There are three main fiscal regime types: profit sharing contracts (PSC), royalty/tax, and service agreements. Among the OSCE countries the standard regime is royalty/tax (also referred to as concession), while PSC contracts are more common in Africa, Asia and South America. Iran, Iraq and Mexico are among the few countries with service agreements.

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