United Kingdom taxation: offshore oil and gas. [Booklet; maps of oil and gas fields included]

Book · Thu Jan 01 04:00:00 EST 1976

OSTI ID:7240597

Now that extensive legislation has come into being for the specific purpose of dealing with profits from oil and gas operations in the UK offshore, the commercial operating environment is greatly clarified. The new provisions apply not only to the companies actually producing oil, but also to many companies providing ancillary services to the offshore oil industry. After an initial royalty of 12/sup 1///sub 2/ percent on the value of oil won and saved (for practical purposes, oil produced) profits from the production of UK offshore oil are taxed in two main stages: the new petroleum revenue tax at 45 percent and corporation tax which is currently levied at 52 percent. The UK Government hopes that the royalty and the two taxes together will yield a total revenue equal to about 70 percent of net profits from UK offshore oil, over the life of the fields. It is not anticipated that Government participation will affect the return on the capital employed by each company, in view of the Government's statement that participation will leave each company no worse off than it would have been had participation not occurred. This is exemplified by the first UK Participation Agreement of February 26, 1976, involving Conoco, Gulf, and the National Coal Board. There are a number of other taxes that oil companies operating in the UK have to take into consideration. These include Value Added Tax and a brief summary of the implications of this tax for oil companies is given. (MCW)

• OSTI ID: 7240597
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
294002* -- Energy Planning & Policy-- Petroleum
294003 -- Energy Planning & Policy-- Natural Gas
ATLANTIC OCEAN
CAPITAL
ENERGY SOURCES
EUROPE
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
GEOLOGIC DEPOSITS
GLOBAL ASPECTS
GOVERNMENT POLICIES
LICENSING
NATURAL GAS
NATURAL GAS DEPOSITS
NATURAL GAS FIELDS
NORTH SEA
OFFSHORE OPERATIONS
OIL FIELDS
PETROLEUM
PETROLEUM DEPOSITS
RESOURCES
SEAS
SURFACE WATERS
TAXES
UNITED KINGDOM