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5 Pages

Denmark's proposed tax hike hits IOC value

Denmark's proposed tax hike hits IOC value

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 includes 1 file(s)

  • Denmark's proposed tax hike hits IOC value PDF - 513.82 KB 5 Pages, 2 Tables, 5 Figures


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  • 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

In this report there are 7 tables or charts, including:

  • Executive Summary
  • Background to the proposal
    • Fields affected by the proposed changes
  • Details of the proposal
    • 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
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