Dealing with petroleum tax means navigating PSCs, JVs, PPT, and HCT. It is a lot, like trying to follow a WhatsApp group chat with 200 people. This calculator makes the fiscal headache disappear. It gives you net profit, tax, and royalty numbers instantly. It is the simple view you need before talking to your tax accountant.

1. Set Your Tax Framework

This is the most important step: defining the rules.

• Contract Type: Choose your arrangement first. Select Production Sharing Contract (PSC) for the 50% tax rate, or choose Non-PSC / Joint Venture (JV), which requires you to input your specific tax rate (it typically falls between 65.75% and 85%).
• PIA Compliance: Select Yes if your project operates under the newer Petroleum Industry Act (PIA). This triggers the Hydrocarbon Tax (HCT) calculation. If you select No, the traditional Petroleum Profit Tax (PPT) applies instead.
• Rate Selection: If you chose PIA (Yes), pick the relevant HCT rate (e.g., 30%). If you chose Non-PSC, input your exact PPT rate in the box provided.

2. Enter Financial Inputs

Input the core production and cost data into the next four fields. This is simple math:

• Production Volume: The total barrels of crude oil produced. (The raw output.)
• Crude Oil Price: The price per barrel in US Dollars. (How much you are selling for.)
• Operating Expenses (OPEX): All costs for running the field, excluding capital expenditure. (What you spent to run the show.)
• Royalty Rate (%): The percentage royalty you pay on your gross revenue.

3. Hit Calculate and Review

After entering the numbers, click the Calculate Tax & Royalty button. The calculator instantly generates your financial breakdown.

• Summary Cards: These show the big numbers immediately: Total Revenue, Total Tax Liability (Royalty + Tax), and your Net Profit After Tax.
• Detailed Breakdown: This section shows the step-by-step logic:
  • Gross Revenue (Volume x Price).
  • Subtracts OPEX and Petroleum Royalty to get the Assessable Profit.
  • Applies either Hydrocarbon Tax (HCT) or Petroleum Profit Tax (PPT) to that profit.
  • The final line is your Net Profit After Tax (the money that actually lands in your account).

This tool cuts through the complexity. You get a direct view of your fiscal obligations based on your inputs. Use this information to model different price scenarios or operating costs easily.

Need to compare 70/bbl versus 85/bbl? Just update the Crude Oil Price and hit Calculate again.