The capture of potential revenues and the risks associated with them depend, among other factors, on the fiscal terms that will be applied to the project, cost estimates for development, production and details on the commercial structure that will be adopted by the oil and financing companies.
The structure adopted by the consortium of the Coral FLNG project – area 4 of the Rovuma basin, Campo Coral Sul, with a view to accommodating LNG production, presents risks of abusive transfer pricing, one of the techniques widely used by companies in the extractive sector for illegally transferring financial resources from the country where the project is located to the company itself.
The risk of abusive transfer pricing arises from the commercial structure set up by the Coral Sul FLNG project consortium, as well as the FLNG financing structure.
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