6.250
%
Neutral
90
mm boe
0
%
Limited interest has been shown in Nepal, as better opportunities are available elsewhere. The September 2025 uprising and transition to elections add political uncertainty. Outlook maintained because hydrocarbon exposure is negligible. Outlook: Neutral. Risk premia unchanged at 6.25%.
October 7, 2026
Asia - Central
mm bbl
bcf
Southern Asia, between China and India.
PSC/PSA
Relatively simple Production Sharing Contract ("PSC") fiscal system. Royalty is fixed, and there is no cost recovery ceiling. Profit oil sharing is based upon production rates; corporate income tax is payable by the contractor.
Youth-led 'Gen Z' protests in September 2025 toppled Prime Minister K.P. Sharma Oli. An interim government under former Chief Justice Sushila Karki was appointed to hold elections in March 2026. US and UK guidance cite political instability, bureaucracy, corruption and FDI restrictions. Nepal has no hydrocarbon production and imports all its fuel from India; it is expanding hydropower exports to India and Bangladesh.
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
