50. Petroleum fiscal regimes Royalty / Tax system Contractual based system Service agreements Production sharing contracts Peruvian Indonesian Pure Hybrids Risk services

59. The R/T system flow Company share Government share Gross revenue $ 20 Royalty 12.5 % $ 2.50 Net revenue $17.50 Assumed costs $ 5.65 Deductions, like CAPEX & OPEX Taxable income $ 11.85 Special petroleum tax 25% $ 2.96 $ 8.89 $ 5.78 Income tax rate 35 % $ 3.11 $ 11.43 Division of gross revenues $ 8.57 $ 5.78 Division of cash flow $ 8.57 40 % Take 60 % 5.78 /($20-5.65) 8.57/ ($ 20-5.65)

63. R/T system cash flow summary Gross revenue 2,000,000 Total costs -565,000 Total profit 1,435,000 Bonus -5,000 Royalties 12.5% -250,000 SPT 25% -296,250 Income tax 35% -309,314 860,563 (GT) Company cash flow 574,438 Company take 40 % (574,438/1,435,000) Government take 60 % (860,563/1,435,000)

71. PSCs Contractor share Government share Gross revenue $ 20 Royalty 10% $ 2.00 $ 18.00 $ 5.65 assumed costs Cost recovery limit 50% $ 12.35 Profit Oil Profit oil split 40/60 $ 4.94 $ 7.41 ($ 1.48) Tax rate 30% $ 1.48 $ 3.46 $ 9.11 Division of Gross revenue $ 10.89 $ 3.46 Division of cash flow $ 10.89 24 % Take 76 % $ 3.46/ ($20-5.65) $ 10.89/ ($20-5.65)

78. Division of profits Take calculations Contents $ 100 Gross revenues -10 Royalty 90 Net Revenues -30 Cost recovery 60 Profit Oil -36 60 % to government 24 40 % to contractor -7.2 Corporate income tax 30 % 16.8 Contractor net income after tax

86. AGR calculations Take contents Contents 100 Gross revenues -10 Royalty 90 Net revenues -60 Cost recovery (limit = 60) 30 Profit Oil -18 60% to government 12 40% to contractor -0 Corporate income tax 30% 12 Contractor net income after tax

95. Take calculations; to summarize A 100% Gross revenues B -10% Royalty C 90% Net revenues D -35% Assumed costs E 55% Profit Oil F -33% Government P/O G 22% Company P/O H -11% Income tax (50%) I 11% Company cash flow 83% GT (B+F+H)/(A-D) 16.9% CT [I /(A-D)] 1.31% R factor [(D+I)/D] 57% Entitlement (D+G)