Recently the energy industry consulting firm Global Data issued a report according to which royalties on oil and gas in Romania are likely to increase by around ten percent on average from 2015. Windfall taxes on the industry are about to expire but more permanent taxes on oil and gas production could be introduced. A stability agreement is to expire in December 2014, and a deficit reduction program is under way in Romania, so tax increases are likely.
Owing to the requirement to improve the public finances Romania will need to gain more income from the oil and gas industry in the form of increased royalties or further taxes. With the ending of the stability agreement and expiration of the windfall taxes new measures will therefore be needed to ensure that government income from oil and gas is at least maintained and if possible increased. However there is also a need to encourage further exploration for oil and this must be taken into account in setting the royalty rates.
The report from Global Data was put together on the basis of information from proprietary databases, primary and secondary research and in-house analysis. The report outlines the criteria that affect the profitability in the sector and look at the amount of tax raised from the industry.
