The 16th International Petroleum Tax Conference 2005

The 16th International Petroleum Tax Conference

Norwegian Petroleum Society (NPF) welcomes you to the 16th International Petroleum Tax Conference in Oslo.

The Conference comes at a time of growing concern over global energy supplies and particular the impacts of the rapid increase in oil prices during the current decade. Production from the North Sea remains a critical ingredient in the global supply equation and fiscal policies will play a key role in determining the nature of that contribution in the coming decades.

To fully understand the outlook for fiscal conditions and the competitive forces driving the change agenda, under which the Norwegian petroleum industry operates, presence in this conference has turned out to be a necessity.

In recent years we have experienced increasing oil prices mainly due to high global demand and a falling  spare capacity cushion. Uncertainty, however, still influences the decisions within the industry although spending on exploration and developments has increased. This year’s conference is taking place against the backcloth of a successful licensing round on the Norwegian Continental Shelf (NCS) which demonstrated continuing high interest from incumbents and new entrants.

Last year’s petroleum tax amendments have to a certain extent improved the fiscal terms and increased the number of newcomers on the NCS. Will, however, the NCS still realise only a limited number of new developments with satisfactory potential? Established companies  regard the tax amendments in Norway as insufficient to meet the challenges facing a NCS, which remains a demanding frontier province? With continued high oil prices, will we experience countries introducing windfall profit taxes to optimize domestic revenue? Or will the high oil prices result in more projects increasing competition for company funding and thus increase the tax competition between countries?

By focusing on both Norwegian and European issues with respect to current tax and other framework conditions, the conference will have topics of interest which appeal to wide range of Industry practitioners during a two-day event. The conference is also addressing both the developments in the oil and gas policy and the competitiveness of the NCS as seen from the “board room” of an international petroleum company. This year the Minister of Petroleum and Energy will speak on behalf of the Government, and we will have perspectives from BG’s as one of the newcomers to the NCS .

The oil price is a very topical issue and is likely to remain so, huge uncertainty persists as to how oil prices evolve  from here and their impact not only on the oil & gas Industry but on the wider economy. The Centre for Global Energy Studies will provide the conference their unique insights into understanding recent behaviour in the global oil market  and what are the key drivers that will determine the pricing outlook for the remainder of the decade. Further, UBS will give a presentation to explain how higher crude oil prices may impact on global upstream  framework conditions, with particular reference to tax. Furthermore, the conference will as in the past, address the situation for the energy sector in  neighbour country. Representatives from the Danish Energy Authority and Ministry of Taxation will give an update on the Petroleum Activities and Policies in Denmark. The conference will end day one with two presentations on current tax issues in Norway, seen both from the Ministry of Finance and from an industry perspective. Furthermore, we will continue with informal round table discussions during the aperitif before the dinner.

The introductory presentation of day two of the conference will focus on the challenges of energy  supply facing Europe. The European Commission is currently updating the year 2000 Green Paper on Energy with publication expected during the Autumn. Indigenous production, in particular production in the North Sea can continue to play an important role in supplying the EU’s growing energy requirements.  Environmental issues and its possible impact on framework conditions may receive more importance in the future and perhaps some experiences from quotations trade will enlighten the understanding. The norm price system has prevailed for a long time – however some weaknesses may be seen from a business perspective. The remainder of day two will address current tax assessment issues seen from the Oil Taxation Office and the taxpayers.

Presentations will be given in English by representatives from the Norwegian Government, governmental bodies, tax authorities, international petroleum companies, consultants, academia and audit/law firms.

The conference addresses senior managers and other professionals working with tax, finance and economic matters in petroleum companies, the Government, audit/law firms and financial institutions.

Conference Committee:
– Einar Hille, Tax Manager, Esso Norge a.s, (Chair)
– Jørgen Andersen, Vice President Tax, Hydro
– Frode Bøhm, Section Manager, The Norwegian Oil Industry Association (OLF)
– Per Harg, Attorney-at-Law, Selmer DA
– Frode Johansen, Ass. Director General, Norwegian Ministry of Petroleum and Energy
– Morten E. Lindbäck, Oil Analyst, Sector Asset Management ASA
– Øystein Noreng, Professor, Norwegian School of Management (BI)
– Stig B. Sollund, Director General, Norwegian Ministry og Finance
– Egil Steinberg, Vice President Tax, Statoil ASA
– Tor Jan Tjosevik, Tax Manager, A/S Norske Shell
– Raymond Hall, Commercial Advisor, BP Plc, UK
– Lise M. Rivelsrød, Norwegian Petroleum Society, Project Manager (Secretary)

Please contact Lise M. Rivelsrød for further information. Telephone: (+47) 22 43 29 68,
e-mai: lise.rivelsrod@npf.no