Observation on royalties and similar taxes – ‘An updated overview’
Oil and gas upstream in Europe
- Fiscal and regulatory framework plays an important role in the overall economics of oil & gas business, given its long term business cycle. Commissioned by Federatia Patronala de Petrol si Gaze (“FPPG”), we conducted an analysis using publicly available information as of 2013 and, in February 2015, we issued our report observing the various “Royalty and similar taxes” in various European countries as a percentage of revenues. The current report is a brief update of the previous report, using 2014 data.
- The update must be considered within the limitation that every field is different let alone two countries. Royalties and sector specific taxes are driven by national priorities, market reality and in recent months also had been affected by or are in the process of revision due to the severe decline of oil prices.
- To have a more thorough understanding the update should be read together with February 2015 report.
- In most of the countries with sizeable oil & gas production a declining trend is noted. Additionally there are a number fiscal changes to take effect from 2015. We have only looked at some countries and they are included at the end