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Market Research Report

Norway Upstream (Oil and Gas) Fiscal and Regulatory Guide

Published by GlobalData Product code 963044
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Norway Upstream (Oil and Gas) Fiscal and Regulatory Guide
Published: October 2, 2020 Content info:

Norway governs upstream petroleum operations through a royalty and tax framework. In June 2020, the government approved an investment tax relief package that temporarily amends the rules on depreciation, tax-free income (uplift), and losses as defined in the Petroleum Tax Act. The package allows development expenses and uplift (temporarily increased to 24%) to be immediately deducted from the special tax base for 2020 and 2021. The tax value of losses incurred in 2020 and 2021 will also be refunded. After 2021, eligible projects will continue to benefit from the incentive. There have been early indications that the package will be effective in ensuring continued investment in Norway's industry. To promote continued exploration, the government has also launched the APA 2020 licensing round. The deadline to apply for the round is September 22, 2020 and awards are expected in Q1 2021.

"Norway Upstream (Oil and Gas) Fiscal and Regulatory Guide", presents the essential information relating to the terms which govern investment into Norway's upstream oil and gas sector. The report sets out in detail the contractual framework under which firms must operate in the industry, clearly defining factors affecting profitability and quantifying the state's take from hydrocarbon production. Considering political, economic and industry specific variables, the report also analyses future trends for Norway's upstream oil and gas investment climate.


  • Overview of current fiscal terms governing upstream oil and gas operations in Norway
  • Assessment of the current fiscal regime's state take and attractiveness to investors
  • Charts illustrating the regime structure, and legal and institutional frameworks
  • Detail on legal framework and governing bodies administering the industry
  • Levels of upfront payments and taxation applicable to oil and gas production
  • Information on application of fiscal and regulatory terms to specific licenses
  • Outlook on future of fiscal and regulatory terms in Norways

Reasons to Buy

  • Understand the complex regulations and contractual requirements applicable to Norway's upstream oil and gas sector
  • Evaluate factors determining profit levels in the industry
  • Identify potential regulatory issues facing investors in the country's upstream sector
  • Utilize considered insight on future trends to inform decision-makings
Table of Contents
Product Code: GDGE0174UFR

Table of Contents

Table of Contents

1. Executive Summary

  • 1.1 Regime Overview ─ Royalty Tax Agreement
  • 1.2 Timeline

2. State Take Assessment

3. Key Fiscal Terms

  • 3.1 Royalties, Bonuses and Fees
  • 3.2 Abandonment and Decommissioning
  • 3.3 Direct Taxation
  • 3.4 Indirect Taxation
  • 3.5 State Participation

4. Regulation and Licensing

  • 4.1 Legal Framework
  • 4.2 Institutional Framework
  • 4.3 Licensing Process
  • 4.4 License Terms

5. Appendix

  • 5.1 References

List of Tables

List of Tables

  • Table 1: Regime Overview
  • Table 2: Norway, Key Events since 2000
  • Table 3: Norway, Area Fees (NOK/km2), 2007 Onwards
  • Table 4: Norway, Area Fees (NOK/km2), 1965-2006
  • Table 5: Norway, Liquid Royalty Rates, 1972-2005
  • Table 6: Norway, Corporate Income Tax Rates (%), 1965-2019
  • Table 7: Norway, Special Petroleum Tax Rates (%), 1975-2019
  • Table 8: Norway, Uplift, 1992-2021
  • Table 9: Norway, Interest Rate on Losses Carried Forward (%), 2003-2020
  • Table 10: Norway, Environmental Taxes, 2015-2020
  • Table 11: References

List of Figures

List of Figures

  • Figure 1: Regime Flow Chart
  • Figure 2: Norway, Indicative NPV10/boe, IRR and State Take Comparison, and Price and Cost Sensitivity Analysis
  • Figure 3: Norway, Legal Framework
  • Figure 4: Norway, Institutional Framework
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