| |
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


This Upstream Oil and Gas Insight report highlights the key issues surrounding this topic, and draws out the key implications for those involved.

This report helps participants, suppliers and advisors understand trends, risks and issues within the upstream oil and gas industry. It gives you an expert point of view to support informed decision making.

Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research.

Proprietary data means a superior level of analysis that is simply not available anywhere else. Wood Mackenzie is the recognised gold standard in upstream commercial data and analysis.

  • 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
Requester's name : .............
Department : .............
Authoriser's Name : .............
Authoriser's signature : .............
Date : .............
Cost Centre : .............

Questions about this report?

Frequently Asked Questions
  • Europe: +44 131 243 4699
  • Americas: +1 713 470 1900
  • Asia Pacific: +61 2 8224 8898
contact us

Why Wood Mackenzie?

Wood Mackenzie, a Verisk Analytics business, has been a trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, empowering clients to make better strategic decisions with objective analysis and advice.

We work across every sector of oil, gas, power, renewables, chemicals, metals and mining, covering more than 150 countries. Our proprietary data and models are at the core of everything we do, ensuring our independent asset and company valuations are thoroughly robust and that we offer an accurate forward-looking view of economic indicators such as market supply, demand and price trends.

Our 500+ analysts are based in the regions they cover, cultivating an unrivalled depth of understanding to help clients accurately identify new opportunities, define their strategy and improve business performance.

At every stage, our teams readily collaborate and share their insight to provide an integrated perspective across entire industries. It is this unique and rigorous analytical approach that ensures we are recognised as the industry standard by the world’s most innovative organisations.