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Fees, taxation and state participation

Fees and taxation

The holder or co-holder of a permit for hydrocarbon exploration or production must pay a series of fees, which might include surface rights, severance tax, corporation tax, royalty and a provincial fee. The amounts of these fees and taxes and conditions under which they are owed are outlined in this section....read more.


Contact: Belastingdienst Rijnmond


State participation

The Dutch Mining Act states that there are two separated procedures for the exploration and production of hydrocarbons. There are also two separate licences required. The Minister of Economic affairs, Agriculture and Innovation (EL&I) can appoint EBN to participate in both the exploration as production fase. EBN distributes all profits from its activities to the Dutch State.

Exploration
When requested by the licence holder, the Minister of EL&I can appoint EBN to participate for 40% in the exploration for oil or natural gas. The joint-venture agreement between the licence holder and EBN has to be approved by the Minister. EBN is not a licence holder and does not have the initiative for exploration activities. Since the 1st of January 2010 state participation by EBN is possible for both onshore as offshore exploration licences.

Production
When the presence of oil or natural gas is demonstrated during the exploration fase, the licence holder of the exploration licence can apply for a production licence. Unless the Minister decides differently, EBN participates for 40% in the production of oil or natural gas. Once again, the joint-venture agreement between the licence holder and EBN has to be approved by the Minister. EBN is not the licence holder, but invests and gets a 40% share of the profits. The state participation by EBN applies for both onshore as offshore production licences.

If EBN was not involved in the initial exploration activities that directly precede and relate to a production licence, the production licence agreement will stipulate that EBN will reimburse the licence holder for 40% of the costs incurred in exploration for and appraisal of the prospect, and any further capital investment in production facilities.

Next to these activities, EBN is also a partner in six offshore pipelines, four gas storage facilities and the company has a 40% interest in GasTerra.


Contact: EBN