Italy Oil and Gas Upstream Fiscal and Regulatory Guide

Italy Oil and Gas Upstream Fiscal and Regulatory Guide

Summary

Italy governs upstream petroleum operations through a royalty and tax framework. In 2019, the country significantly increased surface fees and imposed a moratorium on offshore exploration. These steps are part of a major push towards progressing the energy transition and achieving ambitious decarbonisation targets in the country. The offshore moratorium was set for an initial 18 month period, although the economic shock caused by the COVID-19 pandemic may effect this. Additionally onshore exploration has been significantly impeded due to sustained environmental pressure and public hostility towards drilling. It is possible that in the longer term, regulation and taxation on the petroleum industry will increase further as the country continues its push towards the energy transition and environmental pressure remains.

“IItaly Oil and Gas Upstream Fiscal and Regulatory Guide”, presents the essential information relating to the terms which govern investment into Italy’s upstream oil and gas sector. The report sets out in detail the contractual framework under which firms must operate in the industry, clearly defining factors affecting profitability and quantifying the state’s take from hydrocarbon production. Considering political, economic and industry specific variables, the report also analyses future trends for Italy’s upstream oil and gas investment climate.

Scope

  • Overview of current fiscal terms governing upstream oil and gas operations in Italy
  • Assessment of the current fiscal regime’s state take and attractiveness to investors
  • Charts illustrating the regime structure, and legal and institutional frameworks
  • Detail on legal framework and governing bodies administering the industry
  • Levels of upfront payments and taxation applicable to oil and gas production
  • Information on application of fiscal and regulatory terms to specific licenses
  • Outlook on future of fiscal and regulatory terms in Italy
Reasons to Buy
  • Understand the complex regulations and contractual requirements applicable to Italy’s upstream oil and gas sector
  • Evaluate factors determining profit levels in the industry
  • Identify potential regulatory issues facing investors in the country’s upstream sector
  • Utilize considered insight on future trends to inform decision-making


  • Regime Overview
    • Table Regime Overview
    • Regime Overview „Ÿ Royalty and Tax Agreement
      • Table figure1: Regime Flow Chart
    • Timeline
      • Table Italy, Key Events Since Year 2000
  • State Take Assessment
    • Table figure2: Italy, Indicative NPV10/boe, IRR and State Take Comparison, and Price and Cost Sensitivity Analysis
  • Key Fiscal Terms
    • Royalties, Bonuses and Fees
      • Surface Fees
        • Table Italy, Surface Fees, 1997 Onwards
      • Royalty
        • Table Italy, Onshore Royalties (%), 1997 Onwards
        • Table Italy, Offshore Royalties (%), 1997 Onwards
        • Table Italy, Oil Royalty Exemption Thresholds, 1997 Onwards
        • Table Italy, Gas Royalty Exemption Thresholds, 1997 Onwards
        • Table Italy, Sicily Onshore Royalty Rates, 1997 Onwards
    • Direct Taxation
      • Corporate Income Tax (IRES)
        • Table Italy, Corporate Income Tax Rates (IRES), 1981 Onwards
      • Deductions and Depreciation
        • Table Italy, Tangible Asset Depreciation Rates (%), Fossil Fuels Sector, 1996 – Present
      • Additional Income Tax 2008 - 2015 (Abrogated)
        • Table Italy, Additional Corporate Tax Rates, 2008 - 2015
      • Regional Tax (IRAP)
        • Table Italy, National IRAP Tax Base Rate, 1997 – 2020
        • Table Italy, Regional IRAP Rate (%), 2019 Onwards
      • Withholding Tax
    • Indirect Taxation
      • Value Added Tax
      • Customs Duties
  • Regulation and Licensing
    • Legal Framework
      • Table figure3: Italy, Legal Framework
      • Governing Law
      • Contract Type
      • Title to Hydrocarbons
    • Institutional Framework
      • Table figure4: Italy, Institutional Framework
      • Ministry of Economic Development
      • Licensing Authority
      • Regulatory Agency
      • National Oil Company
    • Licensing Process
      • License Applications
      • Duration
      • Licensing Restrictions
      • Work Obligation
  • Appendix
    • References
      • Table References
    • Contact Us
    • Disclaimer

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