1 Table of Contents 1 Table of Contents 1 1.1 List of Tables 2 1.2 List of Figures 2 2 Regime Overview 3 3 Fiscal Take Assessment 5 4 Key Fiscal Terms 6 4.1 Upfront Payments 6 4.1.1 Signature Bonus 6 4.1.2 Discovery Bonus 6 4.1.3 Production Bonus 6 4.1.4 Surface Rentals 6 4.1.5 Royalty 6 4.1.6 Training Contributions 7 4.2 Cost Recovery 7 4.2.1 Cost Recovery Limit 7 4.2.2 Recoverable Costs 7 4.3 Profit-Sharing 7 4.4 Direct Taxation 8 4.4.1 Corporate Income Tax 8 4.4.2 Deductions and Depreciation 8 4.4.3 Withholding Tax 8 4.5 Indirect Taxation 8 4.5.1 Import Duty 8 4.5.2 Value Added Tax 8 4.6 State Participation 8 5 Regulation and Licensing 9 5.1 Legal Framework 9 5.1.1 Governing Law 9 5.1.2 Contract Type 9 5.1.3 Title to Hydrocarbons 9 5.2 Institutional Framework 10 5.2.1 Licensing Authority 10 5.2.2 Regulatory Agency 10 5.2.3 National Oil Company 10 5.3 Licensing Process 10 5.3.1 Licensing Rounds 10 5.3.2 Prequalification 11 5.3.3 Bidding 11 5.3.4 Bid Evaluation 11 5.4 License Terms 11 5.4.1 Duration and Relinquishment 11 5.4.2 Exploration Work Obligations 11 5.4.3 Domestic Market Obligations 12 5.4.4 Local Content 12 5.4.5 Natural Gas 12 6 Outlook 13 7 Contact Information 14

1.1 List of Tables Table 1: Summary 3 Table 2: Equatorial Guinea, Production Bonuses (US$), Block F 6 Table 3: Equatorial Guinea, Surface Rental Rates (US$/hectare), 2016 6 Table 4: Equatorial Guinea, Royalty Rates (%), Block F 7 Table 5: Equatorial Guinea, Profit-Sharing Framework, Block F 7 Table 6: Equatorial Guinea, Local Content Threshold (%), 2016 12 1.2 List of Figures Figure 1: Regime Flow Chart 4 Figure 2: Equatorial Guinea, Indicative NPV10/boe, IRR and Fiscal Take Comparison - Regional, 2015 5 Figure 3: Equatorial Guinea, Legal Framework 9 Figure 4: Equatorial Guinea, Institutional Framework 10