Mauritius Freeport Portal
Polar Duchess, of Norwegian company Dolphin Geophysical that conducted the 3D seismic completed in July this year. (Bruno Webster, Dolphin Geophysical) Photo License: CC-BY
- A royalty of 10% levied on the market value of oil produced and saved during each month.
- Petroleum Income Tax of 35%, which is paid in accordance with the Petroleum Income Tax Act 2008.
- Petroleum Additional Profits Tax (PAPT), a resource rent tax levied on cash flows. The Model Agreement provides for a two-tier structure for PAPT - the first becomes due once the company has earned a particular threshold rate of return on its investment, and the second becomes due after the company has earned an even higher post-tax rate of return. The first threshold rate of return which triggers payment of PAPT is 15% and the tax rate is 25%, the second threshold rate and tax rate are negotiable.
- Work program: geological prognosis, 10%; Period 1 commitment, 40%; and Period 2 proposal, 10%.
- Fiscal considerations: Tier 2 PAPT and any other items, 10%.
- Applicant qualifications: technical, 15%; financial, 15%.