Dabi Gab-Leyba Guy, Laporte Bertrand

Chad has the distinction of having introduced a Production Sharing Contract – PSC-  in the 2007 Chad oil code, while maintaining a royalty on production. Despite this feature, the paper shows with a Cash Flow model and Monte Carlo simulations that the application of the 2007 oil code introduced more progressivity into taxation. This feature is particularly interesting in the current context of falling crude oil prices, because it maintains a favorable tax regime for exploration and exploitation by multinational oil companies. As a result, the Chad government should reactivate a counter-cyclical policy of oil revenue reserves when the crude oil price increases again.