3.125
%
Uncertain
10
mm boe
14
%
The Dutch sector has matured, with the government managing tail legacy assets. While recent M&A activity points towards the merits of stable cash flow in trusted jurisdiction, the growing influence of the environmental lobby undermines any benefits accruing to operating in country. More recent moves to limit production reiterate the absurdity of the country's green movement. However, the recent elections have put a significant dent in the more outlandish elements of O&G policy. Consequently, we have upgraded out outlook to Uncertain.
April 17, 2023
Europe - North West
mm bbl
bcf
Western Europe, bordering the North Sea, between Belgium and Germany.
Concession
Holders of a Dutch exploration and/or production license are generally subject to (a combination of) the following direct taxes: (i) corporate income tax (“CIT”); (ii) surface rental taxes; (iii) state profit share (“SPS”); and/or (iv) a royalty-based taxation.
The Netherlands business community suffered a two-pronged loss in the planned departure of two of its major national corporate champions. Energy leader Shell and food and household products conglomerate Unilever announced in 2021 a relocation of their corporate headquarters from The Hague and Rotterdam, respectively, to London. The companies cited concerns with Dutch tax law relative to dividend taxation and need for consolidated management structure.
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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