Malta's offshore is gaining traction in the wake of the discoveries made in the Levant basin, predominantly in the Israeli sector.
May 29, 2021
Europe - North West
Relatively simple Production Sharing Contract ("PSC")-based fiscal regime. No royalty is payable. Cost recovery ceilings are negotiable with a specified maximum; profit oil splits are also negotiable, based on project profitability. The contractor is also liable for corporate income tax.
Corruption has been at the forefront of Malta’s politics and society for the last few years. Transparency International’s Corruption Perception Index for 2019 (most recent survey) scored Malta at 50 on a scale of zero (corrupt) to 100 (transparent). A slow judiciary can draw out legal proceedings for years; Malta’s struggle to close successful prosecutions makes rule of law a significant concern.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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