France

Investment & Operational Criteria

Key Indicators

Risk Premia

6.250

%

Outlook

Negative

Rating

BBB|2S|-

Ranking

40

Reserves (1P)

Total

mm boe

Oil

53

%

Summary

While the country’s economic outlook continues to strengthen, we believe that the government is hostile to O&G and as such rates lowly in our risk assessment. We do not see this changing any time soon, not until at least its first hydrocarbon energy shock. Given the animosity towards business in general and O&G in particular, we have France on a Negative outlook.

Updated

May 18, 2021

Country Basics

Region

Europe - North West

Reserves (1P)

Oil

mm bbl

Gas

bcf

Location

FranceFrance

Western Europe, bordering the Bay of Biscay and English Channel, between Belgium and Spain, southeast of the UK; bordering the Mediterranean Sea, between Italy and Spain.

Outline

Tax Regime
Type

Concession

Tax Regime
Notes

Simple Concession fiscal regime, with royalty, corporate income tax and some local taxes. Royalty rates and local taxes vary with production rates and the vintage of the field development. Offshore fields are exempt from royalty and local taxes

Investment & 
Operational
Climate

France welcomes foreign investment and has a stable business climate that attracts investors from around the world. The French government devotes significant resources to attracting foreign investment through policy incentives, marketing, overseas trade promotion offices, and investor support mechanisms. France has an educated population, first-rate universities, and a talented workforce. It has a modern business culture, sophisticated financial markets, a strong intellectual property rights regime, and innovative business leaders. Following the election of French President Emmanuel Macron in May 2017, the French government implemented significant labour market and tax reforms. By relaxing the rules on companies to hire and fire employees and by offering investment incentives, Macron has buoyed ease of doing business in France. However, Macron will likely delay or abandon the second phase of his envisioned reforms for unemployment benefits and pensions due to more pressing concerns related to the COVID-19 crisis.

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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