Country Report

Canada (Alberta) upstream fiscal summary

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04 July 2018

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,...

Table of contents

  • Executive summary
    • 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
    • Recent history of fiscal changes
    • Stability provisions
    • 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

Tables and charts

This report includes 23 images and tables including:

  • Revenue flowchart: Alberta Concession
  • Timeline
  • Timeline details
  • 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
  • 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
  • Bonuses, rentals and fees
  • Royalty rates - Oil
  • Royalty rates - Gas
  • Assumed terms by location
  • Economic analysis: Table 3
  • Maximum government share – onshore, 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