Country Report

Canada (Newfoundland and Labrador) upstream fiscal summary

04 July 2018

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04 July 2018

Canada (Newfoundland and Labrador) upstream fiscal summary

Report summary

Simple concession-based fiscal regime. The 2007 Energy Plan stated that the government of Newfoundland and Labrador would take 10% equity in all future projects via Nalcor Energy (it is expected that Nalcor would take up its equity at the development plan approval stage and would negotiate payment of its share of exploration costs and pre-development costs incurred). Royalty is levied on a two tier system, basic royalty and net royalty, according to a sliding scale at rates linked to...

Executive summary
Current licence, equity and fiscal terms
- Basis
- The following summary and model assumptions are based on standard terms recorded as per the time of publication.
- Licence terms
- Government equity participation
- Fiscal terms
  - Ring fencing
- Bonuses, rentals and fees
  - Indirect taxes
    - VAT/Sales Taxes
  - Royalty
    - Onshore royalty
    - Super-royalty
  - Federal income tax
  - Provincial income tax
  - Product pricing
  - Summary of modelled terms
Fiscal stability
- Recent history of fiscal changes
Economic analysis
- Split of the barrel and share of profit
- Effective royalty rate and maximum government share
  - Maximum government share and maximum state share - Onshore, Oil
- Progressivity
- Fiscal deterrence

Tables and charts

This report includes 22 images and tables including:

Revenue flowchart: Newfoundland Concession
Bonuses, rentals and fees
Timeline

Timeline details
Split of the barrel - oil
Split of the barrel - gas
Share of profit - oil
Share of profit - gas
Effective royalty rate and minimum state share - Offshore, Oil
Effective royalty rate and minimum state share - 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
Assumed terms by location - oil
Economic analysis: Table 3
Maximum government share and maximum state share - Offshore, Oil
Maximum government share and maximum state share - Gas
Royalty rate - Oil onshore
Royalty rate - Oil offshore
Current licence, equity and fiscal terms: Image 1
Royalty rate - Gas

What's included

This report contains:

Canada (Newfoundland and Labrador) upstream fiscal summary

PDF 383.53 KB
ChartFile Deepwater Canada(Concession (NewfoundlandLabrador)).xls

XLS 724.50 KB
Canada (Newfoundland and Labrador) upstream fiscal summary

ZIP 593.15 KB