5. Licensing round opened on July 11, 2019 and closed on November 12, 2019.

Map of licensing area for the 5th round

Download shapefile for the 5th licensing round area

Datapackage

Press here for more info regarding the datapackage

Download the “General Guidance and a Introduction” to the 5th Faroese Licensing Round here.

Download the “Technical Guidance” to the 5th Faroese Licensing Round here.

Download the Application Guidance for the 5th Faroese Licensing Round

 

Download the Parliamentary Act on the Fifth Licensing Round for exploration and exploitation of hydrocarbons.

 

Payment for application:

Cost for a application is DKK 20.000, and should be paid to:

Jarðfeingi (The Faroese Geological Survey):
P/F Bank Nordik
SWIFT FIFBFOTX
acc. no 6460-2600058
IBAN FO31 6460 0002 6000 58
(ref. FEE 142571-2520-0700-0100)
Address:
Føroya Gjaldstova
Kvíggjartún 1
FO-160 Argir
Faroe Islands
*A copy of the receipt for the application-payment must be sent along with the application.

Fiscal terms

Profitability (Internal rate of return – post normal hydrocarbon income tax)

Company income tax:
27% of Taxable Income
Deductibles:
– Costs
– Investments (30% depreciation/year)
18% Tax on Company Income from other activities

SPECIAL TAX:
Rate-of-Return based (ROR)
– Higher return, higher special tax
Calculation basis: Cash flow
Special Tax Rates:
– ROR < 20% 0% Special Tax
– ROR < 25% 10% Special Tax
– ROR < 30% 25% Special Tax
– ROR > 30% 40% Special Tax

Deductibles:
– Costs and investments
– Company Income Tax
– Not interest

Ring-fence (field basis)