Country report
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15 Pages

Canada (Alberta) upstream fiscal summary

Canada (Alberta) upstream fiscal summary

Report summary

Concession-based fiscal regime. Signature bonuses are payable and are used as the basis of awarding leases.  The contractor pays royalty on both oil and gas production, and federal and provincial income taxes. Following the recommendations of the Alberta Royalty Review Panel in September 2007, the Albertan government published its conclusions on a new royalty framework in October 2007, which came into effect on 1 January 2009.  Under the new system for the conventional regime,...

What's included?

This report includes 2 file(s)

  • Canada (Alberta) upstream fiscal summary PDF - 599.07 KB 15 Pages, 12 Tables, 11 Figures
  • ChartFile Onshore Canada(Concession (Alberta)).xls XLS - 504.00 KB


Volatility in oil markets has led players in the upstream oil and gas industry to focus on reducing capital spend and operating costs. At the same time, governments need to review fiscal terms to maintain attractiveness and investment.

This country report gives an overview of the key fiscal issues for this country. If you’re interested in identifying and assessing upstream investment and expansion opportunities, this upstream fiscal summary report is your definitive commercial guide.

Potential investors, governments and companies in the oil and gas sector can use it to gain a better understanding of the critical issues for development opportunities in this country.

Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research. Proprietary data means a superior level of analysis that is simply not available anywhere else. Wood Mackenzie is the recognised gold standard in commercial data and analysis.

  • Executive summary
  • Current licence, equity and fiscal terms
    • Basis
    • Licence terms
    • Government equity participation
    • Fiscal terms
      • Ring fencing
      • Bonuses, rentals and fees
      • Indirect taxes
        • VAT/Sales Taxes
      • Royalty
        • C-Star royalty system
        • Freehold mineral taxes
        • Freehold mineral tax (FMT) is charged on freehold land in an attempt to equalise the value of freehold and crown production to both producer and government. FMT is calculated from the aggregate of tax payable for each component of production for each well on a petroleum and natural gas right. Calculation of each well component is based on the following formulae for liquids and gas respectively.
      • Federal income tax
      • Provincial income tax
      • Product pricing
      • Summary of modelled terms
  • Fiscal stability
    • Recent history of fiscal changes
    • Stability provisions
  • Economic analysis
    • Split of the barrel and share of profit
    • Effective royalty rate and maximum government share
      • Maximum government share and maximum state share
      • Maximum government share – onshore, oil
    • Progressivity
    • Fiscal deterrence

In this report there are 23 tables or charts, including:

  • Executive summary
    • Revenue flowchart: Alberta Concession
  • Current licence, equity and fiscal terms
    • Bonuses, rentals and fees
    • Royalty rates - Oil
    • Royalty rates - Gas
    • Current licence, equity and fiscal terms: Table 4
    • Current licence, equity and fiscal terms: Table 5
    • Current licence, equity and fiscal terms: Image 1
    • Current licence, equity and fiscal terms: Table 6
    • Assumed terms by location
  • Fiscal stability
    • Timeline
    • Timeline details
  • Economic analysis
    • Split of the barrel - oil
    • Split of the barrel - gas
    • Share of profit - oil
    • Share of profit - gas
    • Effective royalty rate - onshore , oil
    • Effective royalty rate - onshore , Gas
    • Economic analysis: Table 3
    • Maximum government share – onshore, gas
    • State share versus Pre-Share IRR - oil
    • State share versus Pre-Share IRR - gas
    • Investor IRR versus Pre-Share IRR - oil
    • Investor IRR versus Pre-Share IRR - gas
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