Merak Fiscal Model Library

A world-class collection of standardized fiscal models

Cambodia PSC (1996)

Fiscal Term Description
Fiscal Regime Type Production Sharing Contract.
Governing Legislation Model PSC 1996.
State Participation None.
Signature Bonus Negotiable.
The following table is indicative rate:
Oil Production Gas Production Production Bonus
(BOPD) (MCFD) (M$)
Production Bonus Production Started Production Started Negotiable
25,000 100,000 Negotiable
50,000 250,000 Negotiable
75,000 500,000 Negotiable
Training Fee Negotiable
Surface Rental Negotiable
Royalty Royalty Rate: 12.5%
• 70% of Revenue after deducting Royalty is used for Cost Recovery.
• Development costs are depreciated 5 year S.L.
• If Development costs are not recovered in 5 years, recovery limit can be renegotiated.
• Exploration and Operating costs are expensed.
• Un-recovered costs are carried forward indefinitely.
• Bonuses are not cost recoverable.
• Overhead Costs are allowable for cost recovery as a percentage of direct costs (opex plus
Cost Recovery capital) as shown on the following table:
Annual Petroleum Costs Overhead Costs
Up to $1,000,000 5.0%
$1,000,000 to $5,000,000 2 .0%
$5,000,000 to $20,000,000 1.0%
Over $20,000,000 0.25 %
(Note: overhead costs entered on the Operating Cost Tab are assumed to be non
recoverable.)

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 Cambodia PSC (1996)

Fiscal Term Description

A negotiable incremental sliding scale basis applies for Profit Split as follows:

Oil Contractor’s Gas Contractor’s

Production Rate Profit Share Production Rate Profit Share
(MBBL/d) (%) (MMcf/d) (%)
Profit Sharing 0 - 10 60 0 - 175 70
10 - 25 55 175 - 350 65
25 - 50 50 350 - 530 60
50 - 75 45 > 530 50
75 - 100 40
> 100 30
• Income tax rate: 20%
Income Tax • Development costs are depreciated 5 year S.L.
• Bonus, Exploration, and Operating costs are expensed.
Withholding Tax None.
Ring Fencing Around the Block for Cost Recovery and Profit Sharing.

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