Insight
Upstream reforms help the Netherlands spearhead Europe’s energy transition
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
On 26 January 2021, the Dutch senate finally passed a bill submitted in May 2020, to amend investment deductions and decommissioning protocol in the Mining Act. As a package, the changes outlined in the amendment all contribute to the Netherlands’ energy transition goals. The new incentives will not lead to massive new investment in exploration or development because of a lack of pre-FID projects and few active explorers. However, increased activity at the margins will undoubtedly contribute to increased economic recovery. And in an increasingly import-dependent gas market, the lower carbon intensity of domestic production will contribute to industry and country-level decarbonisation efforts.
Table of contents
- Executive Summary
- A long-awaited bill is passed
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Thoughts turn to the future of the Dutch offshore
- More attractive tax terms will do little for a bare pipeline of pre-FID projects
- ...although administrative burdens to apply the investment allowance will be lightened
- And while exploration may be partially resuscitated, it won’t see a full revival
- But fiscal incentives will contribute to decarbonisation
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More clarity on decommissioning
- New Decommissioning Security Agreements introduced
- New framework could enable portfolio optimisation
- Decommissioning exemptions benefit both Dutch state and operators
- Amendment is a positive step, but regulatory reforms still needed
Tables and charts
This report includes the following images and tables:
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Netherlands upstream investment and abandonment costsFiscal analysis: Rembrandt and VermeerFiscal analysis: A/15-ANetherlands exploration drilling by yearTop companies by total offshore acreage
What's included
This report contains:
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