5.000
%
Negative
40
mm boe
91
%
Spain continues to frustrate and confound in equal measure. Its small oil & gas industry, the 2021 ban on new exploration and the fragile minority government make it ripe for further tax raids, although its LNG infrastructure is a strategic asset. Outlook maintained because the exploration ban and fiscal risks remain. Outlook: Negative. Risk premia unchanged at 5%.
October 7, 2026
Europe - Mediterranean
mm bbl
bcf
Southwestern Europe, bordering the Mediterranean Sea, North Atlantic Ocean, Bay of Biscay, and Pyrenees Mountains; southwest of France.
Concession
Concession fiscal regime, with corporate income tax at the general 25% rate, surface fees and a tax on the value of extracted oil, gas and condensate (introduced in 2015) in place of a conventional royalty. The 2021 Climate Change and Energy Transition Law bans new exploration permits, investigation authorisations and exploitation concessions, and existing concessions cannot be extended beyond 2042, so the regime is effectively closed to new entrants.
Prime Minister Pedro Sánchez's minority government is weakened by corruption cases and dependence on Catalan parties, but the economy is among Europe's strongest. US and UK guidance cite a large EU market and a renewables boom, but note regulatory complexity and regional fragmentation. Spain has no meaningful hydrocarbon production; it holds Europe's largest LNG regasification capacity. The April 2025 blackout has intensified debate over grid stability and the planned nuclear phase-out.
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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