With prices high, countries revising E&P fiscal regimes

With today’s higher wellhead prices for crude and natural gas, governments of many producing countries are reexamining the fiscal terms of their production-sharing contracts (PSCs) in hopes of increasing their income.Some of the most successful producing countries are responding to soaring prices by increasing the government’s take through taxes, royalties, and participation by national oil companies.However, others that have been less successful in attracting foreign investors must decide whether to leave their tax take unaltered, make temporary changes, or introduce more-radical reform.Some countries with more-mature producing areas where exploration fell off after the price...

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