Oil & Gas Tax and Financial Modelling

– the impact on the business case

As a result of the expected future high oil price, more oil companies are seeking new areas for oil exploration. Currently, no oil resources are exploited in the Faroe Islands, Greenland or Iceland and the countries could therefore hold plenty of opportunities.

When oil companies seek new areas, their professionals will need knowledge and understanding of the respective country’s policy, legislation and economic environment. Especially, the tax area can be dangerous ground and may involve lots of unforeseen issues.

In order to help the need for knowledge regarding Denmark, Greenland, Iceland and the Faroe Islands, PwC will hold a conference in Copenhagen in November 2009. This conference is specifically designed to provide international directors, lawyers, managers and finance/tax-professionals with the necessary understanding of these countries, including legislation and economic environment.

 

Target group
The conference aims at professionals from the oil and gas industry who are employed within finance and accounting – especially tax professionals and professionals in related areas. The conference is also of relevance to people at management and business development level who wish to fully understand the taxations issues and their impact on the final business case when doing business in the North Atlantic area (Denmark, Greenland, Iceland and the Faroe Islands). 

 

Taxation of upstream oil and gas activities in Denmark, Greenland, Iceland and the Faroe Islands
The conference will focus on taxation of oil and gas activities in the Danish, Greenlandic, Icelandic and Faroese territory including requirements for registration and compliance. The Danish, Faroese, Icelandic and Greenlandic taxation systems will be analysed from A to Z in order to clarify the advantages and disadvantages of the oil and gas tax regimes in question. The agenda of the conference will include the following issues:

  • How are the oil and gas tax statements calculated?
  • How is it determined which activities come under ordinary corporate income tax and which activities come under oil and gas taxation?
  • Problems in relation to farm out taxation
  • How are pipelines taxed?
  • What are the authorities’ reporting requirements?
  • Which requirements do sub-contractors have to meet? 
  • How can you optimize the production profile of oil and gas seen from a tax perspective?
  • Should you set up branches or local companies?
  • Which impact has the new acts and bills regarding oil taxation in Denmark, Iceland and Greenland?
  • VAT– CO2 quotas.

 

Agenda
Day 1

  • Taxation of oil and gas activities in Greenland
  • Tax calculations – Greenland
  • Business case – Greenland
  • Taxation of oil and gas activities in the Faroe Islands
  • Tax calculations – Faroe Islands
  • Business case – the Faroe Islands
  • CO2 quotas, allocation, reporting, tax treatment, etc. in the Faroe Islands, Iceland, Denmark and Greenland, respectively
  • VAT regarding oil activities.

Day 2

  • Taxation of oil and gas activities in Iceland
  • Tax calculations – Iceland
  • Business case – Iceland
  • Taxation of oil and gas activities in Denmark
  • How are various taxes in Denmark calculated?
  • Taxation of employees in Denmark
  • Business case – Denmark.

 

Conference speakers
Ove Lykke Hindhede, international Tax Partner, specialised in oil and gas taxation
Troels Bredahl Jørgensen, Tax Director
Jesper Edelbo, Audit Partner
Elín Árnadóttir, Partner

 

See full details here