Country Report

Netherlands upstream fiscal summary

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13 July 2018

Netherlands upstream fiscal summary

Report summary

The Netherlands is a mature oil and gas producer. All new licences operate under the 2003 Mining Act. The country pursues an 'Open Door' licensing policy with no dedicated licensing rounds. Fiscal terms are fixed. The current regime includes an onshore royalty (0-7% for licences with state equity, 0-14% otherwise), a 25% corporate income tax (CIT) and a 50% state profit share (SPS, an additional petroleum tax). The state also typically holds a 40% direct interest via Energie Beheer Nederland (EBN).

Table of contents

  • Executive summary
    • Licence terms
      • Exploration licence
      • Production licence
      • Duration and relinquishment
    • Government equity participation
    • Fiscal terms
      • Ring fencing
      • Bonuses, rentals and fees
      • Indirect taxes
      • Royalty
      • Corporate income tax
        • Exploration costs
        • Depreciation
        • State profit share deduction
        • Losses
        • Payment schedule
      • State profit share
        • Capital uplift
        • Marginal fields incentive
        • 2018 proposed incentive
        • Corporate income tax credit
        • Losses
        • Payment schedule
      • Interaction between state profit share and corporate income tax
      • Fiscal treatment of decommissioning
      • Product pricing
      • Summary of modelled terms
    • Recent history of fiscal changes
      • Timeline detail
    • Stability provisions
    • Split of the barrel and share of profit
    • Effective royalty rate and maximum government share
      • Maximum government share - onshore, oil and gas
    • Progressivity
    • Fiscal deterrence

Tables and charts

This report includes 20 images and tables including:

  • Revenue flowchart: Netherlands Concession
  • Timeline
  • Split of the barrel - oil
  • Split of the barrel - gas
  • Share of profit - oil
  • Share of profit - gas
  • Effective royalty rate - onshore and 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
  • Area rentals
  • Indirect taxes
  • Royalty rates
  • Current licence, equity and fiscal terms: Image 1
  • Netherlands Concession
  • Fiscal stability: Table 1
  • Economic analysis: Table 2
  • Maximum government share - shelf, oil and gas

What's included

This report contains:

  • Document

    Netherlands upstream fiscal summary

    PDF 302.40 KB