Maha Energy

Environmental & Social Information • Apr 19, 2024

Maha Energy Payments to Governments 2023

1. Introduction

This Payment to Governments Report provides an overview of payments to governments made by Maha Energy AB and its subsidiaries ("Maha Energy" or the "Company") during the year of 2023 ("Report"). Maha Energy is committed to the highest standards of corporate governance and transparency, supporting the concept of transparency in revenue flows from oil and gas activities the Company performs in the relevant natural resources-owning countries. The Company believes that this helps empowering citizens of natural resources-owning countries to hold their governments accountable for the wealth generated by the activities involving those resources.

The divestment of the operation in Brazil, concluded on February 2023, resulted in the absence of revenue from operations for the year 2023.

2. Basis of preparation

This Report is prepared in accordance with the Swedish regulations regarding report on payments to governments, as per Lag (2015:812) om rapportering av betalningar till myndigheter ("Regulation"). The referenced Regulation applies to companies involved in extractive activities and for financial years starting after 31 December 2015.

Payments shown in this Report are presented in thousands of USD ("TUSD").

3. Reporting entities

It is included in this Report reference to payments made to governments by Maha Energy AB's subsidiaries engaged in extractive activities, such as exploration, development, and production of oil and gas during the year of 2023.

4. Government

For the purposes of this Report, the term "Government" refers to any national, regional or local authority of a country, and includes any department, agency or entity that is a subsidiary of a government, as well as national oil companies. A state-owned company that undertakes activities outside of its home jurisdiction is not considered to be a Government.

5. Cash basis

Payments are reported on a cash basis, meaning that they are reported in the period in which they are paid, which is not necessarily the same period as the liabilities arise. Refunds are also reported in the period they are received by the Company and are shown as negative amounts in this Report.

6. Materiality

The Regulation requires that payments made as a single payment or as part of a series of related payments exceeding TSEK 860 (approximately TUSD 81, based on average exchange rate of 2023) within one financial year be included in this Report.

7. Payment types

Taxes

For the purposes of this Report, it was reported taxes paid by the Company on its profits or production. Payments are reported net of refunds. Taxes levied on consumption, such as value added taxes, personal income taxes, sales taxes, property and environmental taxes are excluded from this Report.

Royalties and Gross Overriding Royalties

Royalties are payments due to a relevant Government, as a parcel of government the take applicable as a result of the rights to explore and produce oil and gas, and are based on the volume of the hydrocarbons produced in a certain area.

Additionally, this Report also includes the so-called "gross overriding royalty payments" made to Petróleo Brasileiro S.A. – Petrobras ("Petrobras"), a publicly traded company listed, among other markets, on the New York Stock Exchange, with a direct and indirect ownership of 37.5% percent of the voting shares by the Brazilian Federal Government, as of 31 December, 2023 (https://www.investidorpetrobras.com.br/). The gross overriding royalty payments were made by Company once reached a certain volume of hydrocarbon production at Tartaruga Field (divested by the Company in February 2023). The gross overring royalties are not deemed as a direct government take, but rather as a commercial fee arrangement agreed by the working interest owners in a participation agreement entered in the past during the acquisition of a parcel of Petrobras' working interest in Tartaruga Field.

Fees

In the context of this Report, Company has included reference to fees and other sums paid as consideration for acquiring a license or concession; as well as for gaining and/or retaining access to the area where exploration and production activities are performed.

8. Payments overview

Country
(in TUSD)	Taxes	Royalties	Fees	Total
Brazil	239	776	-	1,015
Oman	-	-	83	83
USA	-	-	121	121
Total	239	776	204	1,219

9. Payments by country

Brazil

Governments
(in TUSD)	Taxes	Royalties	Fees	Total
Secretaria da Receita Federal do Brasil	239	759	-	998
Petróleo Brasileiro S.A. – Petrobras 1	-	17	-	17
Total	239	776	-	1,015

¹ See payment types "Royalties and Gross Overriding Royalty" for payments made to Petróleo Brasileiro S.A. – Petrobras.

Per Project
(in TUSD)	Taxes	Royalties	Fees	Total
Tie Field	239	707	-	946
Tartaruga Field	-	69	-	69
Total	239	776	-	1,015
Oman
Governments
(in TUSD)	Taxes	Royalties	Fees	Total
Joint Management Committee,
Financial Subcommittee,	-	-	83	83
Technical Subcommittee
Total	-	-	83	83
Per Project
(in TUSD)	Taxes	Royalties	Fees	Total
Block 70	-	-	83	83
Total	-	-	83	83
USA
Governments
(in TUSD)	Taxes	Royalties	Fees	Total
Gibson County Treasurer	-	-	1	1
Posey County Treasurer	-	-	67	67
Edwards County Collector	-	-	3	3
Illinois Dept Of Revenue	-	-	15	15
Indiana Dept Of Revenue	-	-	35	35
Total	-	-	121	121
Per Project
(in TUSD)	Taxes	Royalties	Fees	Total
Indiana Field	-	-	121	121
Total	-	-	121	121