Revenues

Producing companies pay 5 different forms of revenues to the Government from petroleum produced and sold. These are:

  1.     Royalty.
  2.     40% Income Tax
  3.     Government Production Share.
  4.     Revenues from the Government’s 10% Working Interest in an oilfield.
  5.     Petroleum Surcharge from windfall profits from high oil prices.

In addition, producing companies pay a transportation tax per barrel of oil trucked on public highways.
Exploration and producing companies also pay annual license administrative and rental fees to the Government which are outlined in the Schedule at the back of the Petroleum Regulations.