Country Report

Faroe Islands upstream fiscal summary

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30 April 2021

Faroe Islands upstream fiscal summary

Report summary

Upstream licences in Faroe Islands are awarded under concession terms through licensing rounds or direct applications for licencing. Within the concession terms contractors pay corporate income tax and an additional profits tax which varies with project profitability. The special tax is ring-fenced at the field level with corporate income tax at the company level. There is no government equity participation.

Table of contents

  • Basis
    • Duration
    • Relinquishment
  • Government equity participation
    • Bonuses, rentals and fees
    • Indirect taxes
    • Corporate income tax
    • Ring fencing
    • Base
    • Rate
    • Additional petroleum taxes
    • Special Petroleum Tax (SPT)
    • Ring fencing
    • Base
  • Recent history of fiscal changes
  • Stability provisions
  • Split of the barrel and share of profit
  • Effective royalty rate and maximum government share
  • Progressivity
  • Fiscal deterrence

Tables and charts

This report includes 16 images and tables including:

  • Timeline
  • Timeline details
  • Split of the barrel - oil
  • Split of the barrel - gas
  • Share of profit - oil
  • Share of profit - gas
  • Effective royalty rate and minimum state share
  • Maximum government share – deepwater/shelf, oil and gas
  • State share versus Pre-Share IRR - oil
  • State share versus Pre-Share IRR - gas
  • Investor IRR versus Pre-Share IRR - oil
  • Investor IRR versus Pre-Share IRR - gas
  • Bonuses, rentals and fees
  • Indirect taxes
  • SPT rates
  • Assumed terms by location - oil and gas

What's included

This report contains:

  • Document

    Faroe Islands upstream fiscal summary

    PDF 929.71 KB