Australia’s Oil and Gas Industry Calls for Competitive Tax Regime

Laxman Pai
Sunday, November 4, 2018

Changes to the petroleum resource rent tax (PRRT) announced today by the Commonwealth must be assessed carefully by Australia’s oil and gas industry, said the Australian Petroleum Production & Exploration Association (APPEA).

“Attracting investment in natural gas and oil production has never been more important for Australia,” said APPEA Chief Executive Dr Malcolm Roberts.

“As Australia relies on foreign investment to develop our natural resources, it is vital that we have a stable, competitive tax regime.

“Investors are always concerned when long-standing tax arrangements change.  Since 1987, the PRRT has attracted investment to Australia while delivering $35 billion in revenue for the community.

“The independent Callaghan Review confirmed the PRRT is an effective profits tax which delivers, over the life of projects, a higher return than royalties.  Once a project has recovered its costs and achieves a modest profit, the combination of company tax and the PRRT applies an effective tax rate of 58 cents in the dollar.

“Investors will now need to assess what the proposed changes will mean for future investment in Australia.”

Dr Roberts said, in particular, changes to the treatment of exploration costs are troubling, given exploration has fallen to historic low levels.

“While Australia has attracted significant investment in liquefied natural gas (LNG) projects over the last decade and global demand for LNG continues to rise, future investment in Australia is far from guaranteed,” Dr Roberts said.

“The global gas market is highly competitive and we are not a low cost producer.”

Categories: Offshore Energy Oil Government Update Regulation Finance Asia

Related Stories

Pertamina Joins Petronas in Ultra-Deepwater Asset off Indonesia

Viridien to Shed More Light on Malaysia’s Offshore Oil and Gas Potential

ABL Secures Rig Moving Assignment with India's ONGC

Shell’s Brazil-Bound FPSO Starts Taking Shape

Timor Gap Boosts Stake in Finder Energy’s Timor-Leste Oil Fields

Seatrium Secures ABS Backing for Deepwater FPSO Design

Hanwha Ocean's Tidal Action Drillship Starts Maiden Job with Petrobras

Aquaterra Energy Nets Subsea Analysis Contracts with INPEX off Indonesia

Dutch Contractor Completes Malaysia’s Largest 'Rig-to-Reef' Decom Project

MODEC and Terra Drone Renew FPSO Drone Inspection Partnership

Current News

Sponsored: UAE Breaks Ground on GW-Scale Renewable Energy Hybrid

Pertamina Joins Petronas in Ultra-Deepwater Asset off Indonesia

Malaysia’s Petronas and Oman’s OQEP Strengthen Oil and Gas Ties

Southeast Asia’s 2GW Cross-Border Offshore Wind Scheme Targets 2034 Buildout

Pharos Energy Kicks Off Drilling Campaign Offshore Vietnam

Viridien to Shed More Light on Malaysia’s Offshore Oil and Gas Potential

US Pressure on India Could Propel Russia's Shadow Oil Exports

Energy Drilling’s EDrill-2 Rig Starts Ops for PTTEP in Gulf of Thailand

RINA Wins FEED Contract for Petronas’ Flagship CCS Project in Malaysia

ABL Secures Rig Moving Assignment with India's ONGC

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com