2.500
%
Neutral
73
mm boe
0
%
The country Outlook remains mixed as the excitement is limited to offshore following the disappointing end of Madagascar Oil & Gas.
February 6, 2024
Africa - East
mm bbl
bcf
Southern Africa, island in the Indian Ocean, east of Mozambique.
PSC/PSA
Relatively straight-forward Production Sharing Contract ("PSC") fiscal regime, with royalty rates and production sharing splits based on sliding scale mechanisms with production rates. Cost recovery ceilings and corporate income tax rates are fixed. There is no State participation.
Madagascar possesses large quantities of mineral, agricultural, and marine resources, and the Government of Madagascar (GOM) publicly welcomes foreign direct investment (FDI), however companies have described the investment climate as increasingly challenging. Following a military coup in 2009, FDI decreased from an all-time high of 22% of GDP in 2010 to 10% in 2020. In 2019 the government announced a new strategy for attracting foreign investment and promoting economic development called the “Plan d’Emergence Madagascar” or PEM. As of 2023 the government has yet to publish the PEM but continues to stress the importance of FDI to achieving its development goals.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
© 2024 Oil & Gas Advisors Limited
Website by Rugby Web Design
