1. Table of Contents 1
1.1. List of Tables 3
1.2. List of Figures 3

2. Regime Overview 4

3. State Take Assessment 7

4. Key Fiscal Terms - Production Sharing Agreement 9
4.1. Royalties, Bonuses and Fees 9
4.1.1. Bonuses (Pre-1985 PSAs Only) 9
4.1.2. Royalty 9
4.2. Cost Recovery 9
4.2.1. Limit on Recovery 9
4.2.2. Recoverable Costs 10
4.2.3. Excess Cost Recovery (R/C PSA Only) 10
4.3. Profit Sharing 11
4.3.1. Revenue over Cost PSA 11
4.3.2. Deepwater PSA 11
4.3.3. Progressive Volume Based PSA 12
4.3.4. 1985 PSA 12
4.3.5. 1976 PSA 13
4.4. Research Cess 13
4.5. Oil Export Duty 13
4.6. Supplementary Payment 13
4.7. Direct Taxation 14
4.7.1. Petroleum Income Tax 14
4.7.2. Deductions and Depreciation 14
4.7.3. Investment Tax Allowance 15
4.8. Indirect Taxation 16
4.8.1. Import duties 16
4.8.2. Goods & Services Tax 16
4.9. State Participation 16

5. Key Fiscal Terms - Risk Service Agreements 17
5.1. Contractor Payment 17
5.1.1. Payment Ceiling 17
5.1.2. Cost Reimbursement 17
5.1.3. Remuneration Fee 17
5.2. Direct Taxation 17
5.2.1. Corporate Income Tax 17
5.3. Indirect Taxation 18
5.3.1. Import duties 18
5.4. Local Partner 18

6. Regulation and Licensing 19
6.1. Legal Framework 19
6.1.1. Governing Law 19
6.1.2. Contract Type 20
6.1.3. Title to Hydrocarbons 20
6.2. Institutional Framework 21
6.2.1. Licensing Authority 21
6.2.2. Regulatory Agency 21
6.2.3. National Oil Company 22
6.3. Licensing Process 22
6.3.1. Licensing Rounds 22
6.4. License Terms 22
6.4.1. Duration 22
6.4.2. Work Obligation 23

7. Outlook 24

8. Appendix 26
8.1. Contact Us 26
8.2. Disclaimer 26

1.1 List of Tables
Table 1: Regime Overview 4
Table 2: Cost recovery limit (%), R/C PSA 9
Table 3: Malaysia, Excess Cost Recovery Split (%), R/C PSA 10
Table 4: Malaysia, Profit-Sharing (%), R/C PSA 11
Table 5: Malaysia, Excess Cost Recovery Split (%), R/C PSA 12
Table 6: Malaysia, Gas Profit-Sharing (%), Deepwater PSA 12
Table 7: Malaysia, Profit-Sharing, 1985 PSA 13
Table 8: Malaysia, Supplementary Payment Rates (%), Deepwater PSA 14
Table 9: Malaysia, Petroleum Income Tax, 1976-2017 14
Table 10: Malaysia, Capital Allowances (%) 15
Table 11: Malaysia, PSA Duration (Years) 22

1.2 List of Figures
Figure 1: Regime Flow Chart - Production Sharing Agreement 5
Figure 2: Regime Flow Chart - Risk Service Agreement 6
Figure 3: Malaysia, Indicative NPV10/boe, IRR and State Take Comparison, Internal 7
Figure 4: Malaysia, Indicative NPV10/boe, IRR and State Take Comparison, Regional 8
Figure 5: Malaysia, Legal Framework 19
Figure 6: Malaysia, Institutional Framework 21