New Tax Regime For Offshore Oil And Gas Exploration Welcomed

Plans in the Finance Bill for a new tax regime for offshore oil and gas exploration have been welcomed by the Labour Party TD for Dublin South-West Pat Rabbitte.

Minister Rabbitte said: "The proposals keep faith with a government decision that I sponsored in May 2014 when Energy Minister, and derive from the Wood Mackenzie Review of our oil and gas fiscal system presented to me earlier that year.


"The new regime provides for an increase in the overall State take and an earlier share of the revenue to the State.

"There will be a new tax called the Petroleum Production Tax (PPT) that will apply in respect of authorisations after June 18 2014.

"A minimum PPT payment of 5% will function like a royalty on a field-by-field basis and will result in the State receiving a share of revenue in every year that a field is selling production."

A maximum rate of 55% will apply in the case of new licenses compared with a maximum rate of 40% under the current fixed regime.

(CD/MH)