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Denmark's proposed tax hike hits IOC value

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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.

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    Denmark's proposed tax hike hits IOC value

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Table of contents

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)

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