4.375
%
Uncertain
10
mm boe
71
%
Denmark, while a high-cost area, has maintained a stable fiscal environment that remains competitive against its European peers. However, licensing rounds have ended and production will cease by 2050, so opportunities are limited to existing licences and carbon storage. Outlook amended from Uncertain because the policy direction is now clear: stable terms but no new licensing. Outlook: Neutral. Risk premia unchanged at 4.375%.
October 7, 2026
Europe - North West
mm bbl
bcf
Northern Europe, bordering the Baltic Sea and the North Sea, on a peninsula north of Germany.
Concession
Danish resident companies are subject to tax in accordance with a modified territoriality principle, meaning that foreign income is not included in the income estimates for Danish resident companies. The tax regime consists of a combination of corporate income tax and hydrocarbon tax combined with a special hydrocarbon tax allowance. Companies engaged in oil and gas activities are subject to the applicable Danish tax rules applicable to Danish companies and branches, with the adjustments provided in the Hydrocarbon Tax Act and the Hydrocarbon Tax Assessment and Collection Act.
Denmark is a stable, low-risk EU member, although US pressure over Greenland has strained relations with Washington. US and UK guidance cite a transparent, business-friendly environment with high taxes and labour costs. The EIA notes that Denmark has cancelled future licensing rounds and will end North Sea oil & gas production by 2050. The redeveloped Tyra hub restarted in 2024, and the country is pioneering offshore CO₂ storage (e.g. Greensand), although Ørsted's difficulties have hit offshore wind.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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