Insight
Norway’s petroleum tax system: is it time for change?
Report summary
Norway’s petroleum sector is transforming, but its fiscal system has been the most stable in the world for 25 years. Is it still fit for purpose? In this Insight we summarise the current fiscal debate. What effect the exploration tax refund has had on the sector and government fortunes? Can the government achieve its aim of fiscal neutrality under the current system? Is the current tax system competitive with the UK, and US (GoM), where tax rates have recently been reduced? This Insight will provide you with a thorough understanding of the current Norwegian tax system and its future challenges.
Table of contents
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Executive summary
- Norway’s petroleum tax system
- Exploration cost refund
- Why introduce the exploration cost refund?
- Impact of the exploration refund policy
- Fiscal neutrality, discounting and the uplift debate
- High tax rates and competitiveness
- Is Norway’s tax system fit for purpose?
- References
- Appendix 1 Norwegian petroleum tax system: illustration
- Appendix 2 Full cycle economics methodology
- Appendix 3 Comparison of depreciation and uplift values
- Appendix 4 EMV comparison
Tables and charts
This report includes 12 images and tables including:
- Figure 1 Comparison of pre- and post-government EMV
- Table 1 Exploration activity and results 2005-17
- Figure 2 Volumes discovered 2005-17
- Table 2 Value created from Norwegian exploration: 2005-17
- Figure 3 ST uplift rate required for NPV neutrality
- Figure 4 Comparison of fiscal stability
- Figure 5 Comparison of Government Share
- Figure 6 EMV comparison
- Figure 7 Distribution of discovered reserves
- Norwegian petroleum tax system: illustration
- Comparison of depreciation and uplift values
- EMV comparison
What's included
This report contains:
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