Insight
Denmark's proposed tax hike hits IOC value
This report is currently unavailable
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$1.47 billion (DKr8.69 billion). The main proposal is to reduce the rate of hydrocarbon tax from 70% to 52%, but also to reduce the hydrocarbon tax allowances from 250% of capex, to 30%. This would result in drastically increased hydrocarbon tax bills for those fields affected.
Table of contents
- Executive Summary
- Background to the proposal
-
Details of the proposal
- Hydrocarbon tax rate and allowances
- Transition Period
- Other changes to the licence terms
- The impact
- Illustrating the impact
-
Economic Assumptions
- Discount rate and date
- Inflation rate
- Oil price
- NGL Price
- Gas Price
- Exchange Rate
Tables and charts
This report includes 7 images and tables including:
- Fields affected by the proposed changes
- Asset impact of proposed changes (US$m)
- Corporate impact of proposed changes (US$m)
- 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
What's included
This report contains:
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