Insight

Denmark's proposed tax hike hits IOC value

This report is currently unavailable

Further information

Contact us

Submit your details to receive further information about this report.

  • An error has occurred while getting captcha image
For details on how your data is used and stored, see our Privacy Notice.
 

Report summary

On 1 March 2013, the Danish Ministry of Taxation announced a proposal to overhaul the fiscal terms of older licences. We estimate the proposed changes would result in a net reduction in remaining IOC value of US$1.47 billion (DKr8.69 billion). The main proposal is to reduce the rate of hydrocarbon tax from 70% to 52%, but also to reduce the hydrocarbon tax allowances from 250% of capex, to 30%. This would result in drastically increased hydrocarbon tax bills for those fields affected.

What's included

This report contains

  • Document

    Denmark's proposed tax hike hits IOC value

    PDF 513.82 KB

Table of contents

  • Executive Summary
  • Background to the proposal
    • Hydrocarbon tax rate and allowances
    • Transition Period
    • Other changes to the licence terms
    • The impact
    • Illustrating the impact
      • Discount rate and date
      • Inflation rate
      • Oil price
      • NGL Price
      • Gas Price
      • Exchange Rate

Tables and charts

This report includes 7 images and tables including:

Images

  • Fields affected by the proposed changes
  • Hejre cash flow on the current terms
  • Hejre cash flow on the proposed terms
  • South Arne cash flow on the current terms
  • South Arne cash flow on the proposed terms

Tables

  • Asset impact of proposed changes (US$m)
  • Corporate impact of proposed changes (US$m)

Questions about this report?

    • Europe:
      +44 131 243 4699
    • Americas:
      +1 713 470 1900
    • Asia Pacific:
      +61 2 8224 8898