Country Report

New Zealand upstream fiscal summary

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04 July 2018

New Zealand upstream fiscal summary

Report summary

Upstream licences are awarded under concession terms through the annual licensing rounds. The fiscal terms are fixed by the 2013 Crown Minerals Regulations. There are two mechanisms for calculating royalty. The contractor will pay either an ad valorem royalty (AVR) of 5% of net sales revenues or an accounting profits royalty (APR) of 20% of profits, whichever is higher. Corporate income tax is payable by the contractor at a rate of 28%. The fiscal terms are amongst the lowest in the region, however there is strong conservation movement against petroleum developments. There is no mandatory state equity participation in upstream licences.

Table of contents

  • Basis
  • Licence terms
  • Government equity participation
    • Ring fencing
    • Bonuses, rentals and fees
    • Indirect taxes
    • Royalty
    • 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 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 and maximum state share
  • 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
  • Royalty calculation
  • Assumed terms by location - oil and gas

What's included

This report contains:

  • Document

    New Zealand upstream fiscal summary

    PDF 893.87 KB

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