On 26 June 2018, Energistyrelsen, the Danish Energy Agency (DEA), launched the 8th Licensing Round. The round covers unlicensed acreage west of 6deg 15' E longitude, with around 14,500 sq km available for bidding, and closes on 1 February 2019.Pursuant to Article 12.1a of the Act on the Use of the Danish Subsoil (Subsoil Act), amended to September 2011, applications are invited for licences to explore and produce hydrocarbons under Articles 5 and 13. The bid round is also accompanied by a dedicated model licence. The following terms apply as delineated in the invitation to bid and the model licence:->Exploration period of six years. An additional four years may be requested. ->A production period of 30 years accompanied by a one-off DKK 100,000 fee. Extension possible. ->A 25% corporate income tax rate (including additional corporate tax of 3%), which is deductible from the basis for assessing Hydrocarbon Tax (HT). ->A HT rate of 52%. In determining the basis for assessing HT, a 5% hydrocarbon allowance is granted on investments for six years (a total of 30%). ->During the period from 2017 to 2025, companies may apply an investment window for certain types of investments to be approved by the DEA. Consequently, the hydrocarbon allowance over a six-year period is raised from 5% to 6.5% a year (a total of 39%). In addition, the rate of reducing balance depreciations in the HT is raised from 15% to 20%, and the time of deduction for the two deductions is changed from the date on which the investments are put into use to the date of payment. However, the deduction is subject to the condition that oil prices remain below US$ 75/barrel (2017 figures, escalated at 2% per year). If the price is higher, the tax deduction must be repaid. No tax losses from other income can be deducted from income derived from Danish oil and gas upstream activities. ->Through the Nordsofonden, the state will hold a paying interest of 20% in all licences. Where two or more applications for the same area are considered to be equally qualified under the selection criteria, the final selection will be made on the basis of a supplementary bid which amounts to an additional share to be offered to the Nordsofonden over and above the mandatory 20% (Article 12a.3) of the Subsoil Act. The total licence share of the Nordsofonden may not exceed 40%.In March 2017, fiscal terms applying to the ongoing development of the Tyra Field were relaxed. This allowed a full redevelopment of the Tyra Field to proceed that would allow the recovery of an estimated 129 MMbo. Similar terms have been applied to the 8th Licensing Round.
On 26 June 2018, Energistyrelsen, the Danish Energy Agency (DEA), launched the 8th Licensing Round. The round covers unlicensed acreage west of 6deg 15' E longitude, with around 14,500 sq km available for bidding, and closes on 1 February 2019.