5.750
%
Positive
5
mm boe
40
%
Germany's government has classified developing German domestic resources as its strategic priority. While EU membership remains an unknown factor, there is a significant groundswell of support for Germany regaining a measure of energy supply stability by better phasing its approach to energy decarbonisation. Recent project approvals continue to support a more positive view that the government is expanding its energy supply mix, specifically domestic supply. Consequently, we reduced our Rick premia by 0.50% to 5.75% and upgraded our Outlook to Positive.
April 23, 2024
Europe - Central
mm bbl
bcf
Central Europe, bordering the Baltic Sea and the North Sea, between the Netherlands and Poland, south of Denmark.
Concession
In principle, Germany does not apply a special taxation regime to the oil and gas industry, with the addition of royalties for exploration. Germany does not impose signature or production bonuses, and no state participation arrangements exist.
The German government continues to strengthen provisions for national security screening of inward investment in reaction to an increasing number of high-risk acquisitions of German companies by foreign investors, particularly from China, in recent years. German authorities screen acquisitions by foreign entities acquiring more than 10% of voting rights of German companies in critical sectors, including health care, artificial intelligence, autonomous vehicles, specialized robots, semiconductors, additive manufacturing, and quantum technology, among others. Foreign investors who seek to acquire at least 10% of voting rights of a German company in one of those fields are required to notify the government and potentially become subject to an investment review. Furthermore, acquisitions by foreign government-owned or -funded entities will now trigger a review.
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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