The report was commissioned by the Minister for Communications, Energy and Natural Resources to review the "fitness for purpose" of Ireland's oil and gas fiscal terms.
In the review Wood Mackenzie compared Ireland's fiscal terms to those of jurisdictions with a similar exploration profile: Falkland Islands; Mauritania; Morocco; Newfoundland & Labrador; New Zealand; Nova Scotia; Portugal; South Africa and Spain. The review also referenced Norway and the United Kingdom, as whilst they have very different exploration profile, they are regularly referred to in debate on the issue of oil and gas fiscal terms.
The key conclusions of the report, which was published in June 2014, are:
- There should be no retroactive change to the fiscal terms applying to existing exploration licences; and
- For new exploration licences, there is scope for strengthening Ireland's current fiscal terms to: provide for an increase in the overall State take, and ensure an earlier share of revenue for the State.
Further details can be found in the report.