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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

Description

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.

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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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