70% of offshore explorers want fiscal terms review

The general consensus among exploration companies with Irish assets is that the Government’s new fiscal/tax terms need to be revised to take account of the new low oil price environment.

The near 50% oil price fall in the past 12 months, coupled with the current tax regime are set to delay meaningful development of Ireland’s burgeoning oil and gas sector and cause headwinds for the industry, a new PwC survey has warned.

Last year, the Government changed the tax framework for Irish offshore operators, with the top rate of tax on profits made from any future oil find in Irish waters going from 40% to 55% and a 5% royalty revenue also going to the State for each year of a producing field’s lifespan.