Regulation 5 Calculation of production levy and non-production levy

(1)

The OGA^f1 must calculate the production levy in accordance with the formula—

\frac{C \times 0.89}{P}

(2)

The OGA must calculate the non-production levy in accordance with the formula—

\frac{C \times 0.11}{N 100 + (N 90 \times 0.1) + (N 80 \times 0.2)}

(3)

In this regulation—

“C” is £44,734,000 (being the total amount of levy);
“N100” is the total number of licences in respect of which a licensee is liable to pay the non-production levy under regulation 4(1) and in respect of which neither regulation 4(2) nor regulation 4(3) applies;
“N90” is the total number of licences in respect of which a licensee is liable to pay the non-production levy discounted by 90% under regulation 4(3);
“N80” is the total number of licences in respect of which a licensee is liable to pay the non-production levy discounted by 80% under regulation 4(2);
“P” is the total number of offshore production licences in respect of which a licensee is liable to pay the production levy under regulation 3(1).

Annotations

f1: “OGA” is defined in section 1(4) of the Energy Act 2016 as the Oil and Gas Authority.