Norway raises oil taxation for the first time in 20 years Report

Insight 07 May 2013

This report is currently unavailable

Share link

First name
Last name
Job Title
Company
Email
Telephone

Country

Message

Consent

Please keep me informed about Wood Mackenzie products, services and events.

Submit Category

For details on how your data is used and stored, see our Privacy Notice.

- FAQs about online orders
- Find out more about subscriptions

*Please note that this report only includes an Excel data file if this is indicated in "What's included" below

Report summary

On 5 May 2013, the Norwegian Government announced a proposal to reduce the capital uplift in the petroleum tax system from 30% to 22%, with immediate effect. The proposal includes a reduction in corporation tax from 28% to 27% and an increase in special petroleum tax from 50% to 51%, leaving the marginal rate of tax unchanged at 78%. This will be effective from 1 January 2014. The changes were a surprise, especially given Norway's reputation for fiscal stability.

Executive Summary
Proposed changes
- Transition terms
The impact on new field developments
The impact on companies
The rationale for change
Economic Assumptions
- Discount rate and date
- Inflation rate
- Oil price
- Gas Price
- Wood Mackenzie assumes the average annualised gas price in nominal terms is US$9.98/mcf in 2013, US$10.20/mcf in 2014, US$10.48/mcf in 2015, US$10.23/mcf in 2016, US$9.82/mcf in 2017 and US$9.29/mcf in 2018, escalating at 2% per annum from the beginning of 2019 onwards. These prices refer to gas with a calorific value of 40MJ/m3.
- Exchange Rate