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8752393 
Journal Article 
How the oil revenue is shared 
Russell, A; Dawe, RA 
2013 
Yes 
Energy Sources. Part B. Economics, Planning and Policy
ISSN: 1556-7249
EISSN: 1556-7257 
8 
4 
346-359 
English 
WOS:000319323800005 
Petroleum-producing countries develop fiscal regimes that have been specifically designed to maximize the government's revenue, but leaving sufficient money to attract investing oil companies. The government take varies considerably from country to country, depending upon factors such as the petroleum potential of the country, crude oil gravity expected, well production rates and costs for exploration, development, production, and operating costs and government policy. The take usually ranges between 60% and 90% of the shareable revenue with the remainder being left for the oil companies. In this study we examine the effects of royalty and taxation measures on the profitability of mature oil producing assets and the effects on funds for maintenance of production and for continuing infrastructure investments, with the following conclusions: The government take in most host countries is usually very significant. Oil price increases improve both the government and the company's take, monetarily. Increases in oil production rates may not increase the government take as a percentage but increases the government revenue monetarily. Often, insufficient revenues remain within the company to allow for the maintenance of wells and infrastructure in mature brownfield assets or for healthy reinvestment to continue the development of smaller fields, or to fund further exploration. Oil companies have choices with respect to where investments are placed, and taxation is a significant driver to determine company return on investments. Copyright © Taylor & Francis Group, LLC. 
fiscal policy; government take; Inland Revenue; oil price; taxation