Country report

Italy upstream fiscal summary

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Report summary

Italy follows an open door licensing policy where companies can apply for available acreage at any time. Upstream licences are awarded under concession terms which are fixed by legislation. Royalty rates range from 7% to 10% depending on permit location and hydrocarbon type. An initial amount of oil and gas production is exempt from royalty every year (varies by location 400 to 1 000 b/d of oil and 2.42 to 7.74 mmcfd of gas). Corporate income tax is levied at 24%. A regional income tax of 3.9% is also levied for onshore operations. There is no state participation in upstream licences.

What's included

This report contains

  • Document

    Italy upstream fiscal summary

    PDF 409.54 KB

Table of contents

  • Executive summary
    • Basis
    • Licence terms
    • Government equity participation
      • Ring fencing
      • Bonuses, rentals and fees
      • Royalty
      • Indirect taxes
      • Corporate income tax
      • Fiscal treatment of decommissioning
      • Product pricing
      • Summary of modelled terms
    • 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 23 images and tables including:

Images

  • Revenue flowchart: Italy Concession
  • Timeline
  • Split of the barrel - oil
  • Split of the barrel - gas
  • Share of profit - oil
  • Share of profit - 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

Tables

  • Timeline details
  • Effective royalty rate - onshore, oil and gas
  • Effective royalty rate - shelf/deepwater, oil
  • Effective royalty rate - shelf/deepwater, gas
  • Maximum government share - onshore. oil and gas
  • Maximum government share - shelf/deepwater, oil
  • Maximum government share - shelf/deepwater, gas
  • Bonuses and Fees
  • Area Rentals
  • Royalty Rate: oil and gas
  • Indirect taxes
  • Income tax
  • Italy Concession Terms

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