Increasing gas demand in South East Asia is widening the gas deficit. This, combined with the significant, underdeveloped resources in the region, make for a compelling investment proposition. Coro plans to leverage their local connections, and the existing, strong infrastructure in South East Asia, to acquire and develop a series of assets in the region.
Source: World Bank, Global Prospects, January 2018
Criteria
PSC based on production levels. Royalty 12.5, and income tax of 55
56
69.8
Relatively new industry, Kris Energy agreed PSC after long negotiation. Corporate tax 30
135
59.5
“Gross Split” PSC without cost recovery. Base split to government 52% for gas and 57% for oil, but with some ministerial discretion for negotiation.
Corporate tax 25, plus branch profits tax 10 (40 effective)
72
61.9
PSC signed with Petronas – the share of profit oil is based on Revenue / Cost (R/C) ratio. Royalty of 10, and tax of 38
24
73.8
PSC with state oil company, progressive sliding scale linked to average daily production. Royalty 12.5, and income tax of 25
171
52.5
Royalty 5 to 15 based on production levels, Special Remuneration Bonuses or SRBs (0 to 75), income tax 50.
PSC regime operates in the Malaysia-Thailand Joint Development Area
26
66.2
PSC based on production volume, income tax 32 to 50, resource tax 7 to 29 for oil, 1-10 for gas. Special incentives to encourage development.
68
52.4
N/A, included as comparison for ranking and index
2
88.6
* The World Bank rank every country worldwide for ease of doing business, this column is each country’s overall rank (higher number, lower rank)
** The Heritage Foundation produce an index of economic freedom based on multiple metrics, included assessments of business, trade and investment freedom, as well as government integrity and judicial effectiveness (higher number, better economic freedom)
East Java is a growing gas market with existing contracted supply declining, upward pressure on prices
Source: Company estimates and SKK MIgas