Enhancing Production and Offtake Arrangements
Revenue Sharing Model
% of Govt. share of revenue
100%
90%
80%
70%
90%
60%
50%
40% 25%
25%
HRP (Y)
30%
20%
10%
0%
0
25
LRP (X)
50
75
100
125
Revenue
Block
B-80
Government Share of
12%
Revenue - LRP
Government Share of
55%
Revenue HRP
Royalty
10% for crude oil,
condensate and Natural Gas
Cess
0
Kherem
21%
99%
HOEC
Bidding process based on the Revenue Sharing Model involves 2 parameters -
Lower Revenue Point (LRP) and Higher Revenue Point (HRP). The revenue share
for intermediate points will be calculated by linear interpolation. The bidder
offering the highest net present value of the revenue share to the Government
will score the maximum on this parameter.
Z= X+[(Y-X)*(R-0.01)/0.99
X-% of Govt. share of revenue payable at LRP
Y - % of Govt. share of revenue payable at HRP
R-Average daily revenue in Million US Dollar
Z-% of Govt. share of revenue when Avg. daily revenue > LRP and < HRP
AA-ONHP-2017/19
Umatara
22%
48%
99%
99%
12.5% for crude oil and
12.5% for crude oil and
12.5% for crude oil and
condensate; 10% for
natural gas
condensate; 10% for natural gas condensate; 10% for natural
0
0
gas
0
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