Upstream reforms help the Netherlands spearhead Europe’s energy transition Report

Insight 19 February 2021

Get this report

$1,350

You can pay by card or invoice

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

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.

Executive Summary
A long-awaited bill is passed
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
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