Historically, the government’s approach to the promotion of its declining hydrocarbon industry has been both measured and fair. However, the recent vote and amendment on the Climate Emergency bill causes some consternation, despite providing some measure of relief to the country's O&G segment. Nevertheless, that the winning margin was wafer thin poses significant risks. Consequently, the outlook remains Uncertain.
June 9, 2021
Europe - North West
Western Europe, occupying five-sixths of the island of Ireland in the North Atlantic Ocean, west of Great Britain.
Ireland’s O&G fiscal regime consists of a combination of corporation tax, a profit resource rent tax ("PRRT") and a petroleum production tax ("PPT"). PRRT is not deductible for corporation tax purposes and only applies only to exploration licenses and reserved area licenses awarded on or after 1 January 2007. PPT is deductible for corporation tax purposes and is not liable of licences that are subject to PRRT.
Ireland joined the European Community in 1973 and the euro-zone currency union in 1999. The economic boom years of the Celtic Tiger (1995-2007) saw rapid economic growth, which came to an abrupt end in 2008 with the meltdown of the Irish banking system. Today the economy is recovering, fuelled by large and growing foreign direct investment, especially from US multi-nationals.
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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