Australia Upstream Fiscal and Regulatory Guide
Summary
Although the Commonwealth government has recently altered the PRRT with the reduction in the uplift rates for certain categories of expenditures in the oil and gas projects, further changes may follow. The Treasury is reviewing gas transfer pricing regulations, with its report expected by April 2020. In addition, as a result of the limited revenues generated by the PRRT to date, there has also been pressure to make broader changes to the upstream fiscal regime. Domestic gas requirements may pressure the Commonwealth government to introduce a domestic market obligation forcing gas producers to reserve some of the produced gas for the domestic market. Australia is presently the world’s second liquefied gas exporter, but it has high gas prices for households and manufacturers and a tight gas supply in eastern Australia, which in few years could experience gas shortages.
“Australia Upstream Fiscal and Regulatory Guide”, presents the essential information relating to the terms which govern investment into Australia’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 Australia’s upstream oil and gas investment climate.
Scope
Reasons to buy
Summary
Although the Commonwealth government has recently altered the PRRT with the reduction in the uplift rates for certain categories of expenditures in the oil and gas projects, further changes may follow. The Treasury is reviewing gas transfer pricing regulations, with its report expected by April 2020. In addition, as a result of the limited revenues generated by the PRRT to date, there has also been pressure to make broader changes to the upstream fiscal regime. Domestic gas requirements may pressure the Commonwealth government to introduce a domestic market obligation forcing gas producers to reserve some of the produced gas for the domestic market. Australia is presently the world’s second liquefied gas exporter, but it has high gas prices for households and manufacturers and a tight gas supply in eastern Australia, which in few years could experience gas shortages.
“Australia Upstream Fiscal and Regulatory Guide”, presents the essential information relating to the terms which govern investment into Australia’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 Australia’s upstream oil and gas investment climate.
Scope
- Overview of current fiscal terms governing upstream oil and gas operations in Australia
- 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 Australia
Reasons to buy
- Understand the complex regulations and contractual requirements applicable to Australia’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-making
Table of Contents
1. Regime Overview
3. Key Fiscal Terms
4. Regulation and Licensing
5. Appendix
List of Tables
List of Figures
