Economic Aspects of Taxation & Royalty Systems


This course is designed for those working in the upstream industry who are not familiar with taxation and royalty systems and require a working knowledge and practical application of the structure, fiscal calculations and economic outputs. The course has a global outlook where numerous worldwide examples are drawn on and fiscal take comparisons made. It is suitable for delegates from all technical and commercial disciplines.


- Understanding of the evolution of global fiscal systems
- The fundamentals of economic analysis (cashflow, cost of capital, NPV, rate of return etc)
- Different methods of applying government royalty
- Field-based taxes
- Calculation of taxation including allowances, depreciation and tax losses
- Taking advantage of tax ring fencing terms to add value to the asses
- Examine sliding scale fiscal mechanisms including R Factor and rates of return methods
- How to optimize fiscal terms from both investor and government perspective
- Construction of a tax/royalty spreadsheet model, the derivation of relevant economic metrics, application of sensitivities and the drawing of conclusions to aid decision-making

Learning Objectives

• Understand how to calculate royalties and taxation
• Appreciate other features such as bonuses, state participation and sliding scales
• Examine the working of ring fencing and consolidation
• Be able to build Royalty/Tax cash flow models
• Be aware of the key fiscal levers with respect to project value
• Learn about the history of Royalty/Tax regimes



Number of Participants



Excel: working knowledge

Software Used


Course Format

Classroom delivery with presentations, practical exercises and modelling workshop

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CGG GeoTraining offers the most comprehensive industry training based on years of practical experience acquired by our personnel.

Our proprietary courses are fully customizable and can be offered at a time and location convenient to you. Please request a course for more information.