6.250
%
Neutral
13
mm boe
44
%
Germany's reliance on Russian gas, and its abrupt withdrawal, has refocused attention on domestic production. While EU membership remains an unknown factor, especially when considering the "top down" approach to legislation, recent project approvals provide optimism that the government is once again looking to expand its energy supply mix, including domestic supply. Consequently, we have upgraded out Outlook to Neutral.
April 17, 2023
Europe - Central
mm bbl
bcf
Central Europe, bordering the Baltic Sea and the North Sea, between the Netherlands and Poland, south of Denmark.
Concession
In principle, there is no special taxation regime applicable to the oil and gas industry in Germany, with the addition of royalties for the exploration. Germany does not impose signature or production bonuses, and there are no state participation arrangements.
The German government continues to strengthen provisions for national security screening of inward investment in reaction to an increasing number of high-risk acquisitions of German companies by foreign investors, particularly from China, in recent years. German authorities screen acquisitions by foreign entities acquiring more than 10% of voting rights of German companies in critical sectors, including health care, artificial intelligence, autonomous vehicles, specialized robots, semiconductors, additive manufacturing, and quantum technology, among others. Foreign investors who seek to acquire at least 10% of voting rights of a German company in one of those fields are required to notify the government and potentially become subject to an investment review. Furthermore, acquisitions by foreign government-owned or -funded entities will now trigger a review.
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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