Page 144 - Atouts-Cameroun-2017
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144LES ATOUTS ECONOMIQUES DU CAMEROUNLEGAL FRAMEWORKSimple and attractive, the legal framework for the exercise of upstream activities is determined by the Oil Code in force since December 1999. It aims at boosting the development of oil resources in strict compliance with international environ- mental standards. It is in line with regimes imple- mented in the Gulf of Guinea; it introduces a significant part of flexibility and controllable eco- nomic and fiscal incentives, in particular with a decrease in corporate tax from 57.5% to a rate of between 38.5% and 50% depending on the project economics.The flexibility of the new Oil Code can enable to negotiate both types of oil contracts recognizedThe headquarters of the National Hydrocarbons Company (SNH) Yaoundé.in the industry: the production-sharing contract and the concession contract.For production-sharing contracts:• The Contractor may choose between two types of sharing: either according to the daily produc- tion or based on the R values of the ratio defined in the contract;• Production shares are calculated before taxes;• All economic parameters (percentage of production for cost recovery, production shares for remuneration, corporate taxes, and bonuses) can be negotiated depending on the project economics.For concession contracts:• A variable royalty rate on production, and a corporate negotiable tax.For both types of contracts:• Exemptions from customs duties during research and special projects such as the development of natural gas;• Reduced customs tariffs for the first five years of the production phase, besides the probability of simplification of customs procedures;• State assistance in business property necessitated by oil operations;• Right to repatriation of profits and to retain sel- ling products in a foreign country;• International arbitration on contractual issues;• Obligation to rehabilitate sites at shutdown of operations.Cameroonian side of the Chad/Cameroon Pipeline centre

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