Fiscal Terms

Fiscal Terms

Oil Case

When the R-Factor (revenue/cost) is below one, the Contractor Group is entitled to 35% of the Profit Oil. The Contractor Group’s percentage is then reduced on a linear scale to a minimum of 16% as the ratio is 2 or greater.

Gas Case

When the R-Factor is below one, the Contractor Group is entitled to 40% of the Profit Gas. The Contractor Groups’s percentage is then reduced on a linear scale to a minimum of 20% as the ratio is 2.75 or greater. Cost recovery gas: up to 55% of net available gas.