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Rig Services and Taxation

Author

Listed:
  • Petter Osmundsen

Abstract

A long period of rig scarcity and high rates has led to innovation in the procurement of rig services and in relationships between oil companies and rig contractors. Discussions have been conducted on joint ventures between companies and contractors, for instance. This paper describes and analyses such a solution from a taxation perspective. Could a joint venture pose problems for revenue capture from the petroleum sector? Challenges in taxing drilling services – including recently adopted British restrictions on determining internal charter rates for drilling units – are also analysed. In addition to analysing topical issues related to taxation and rigs, the paper makes a general contribution by highlighting the connection between taxing rig services at oil-company and rig-contractor levels, and by placing rig taxation in a broader resource management perspective.

Suggested Citation

  • Petter Osmundsen, 2014. "Rig Services and Taxation," CESifo Working Paper Series 4973, CESifo.
    • Handle: RePEc:ces:ceswps:_4973
    as

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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp4973.pdf
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    References listed on IDEAS

    as
    1. Osmundsen, Petter & Rosendahl, Knut Einar & Skjerpen, Terje, 2012. "Understanding Rig Rates," UiS Working Papers in Economics and Finance 2012/9, University of Stavanger.
    2. Kenneth S. Corts, 2004. "The Effect of Repeated Interaction on Contract Choice: Evidence from Offshore Drilling," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 20(1), pages 230-260, April.
    3. Osmundsen, Petter & Toft, Anders & Agnar Dragvik, Kjell, 2006. "Design of drilling contracts--Economic incentives and safety issues," Energy Policy, Elsevier, vol. 34(15), pages 2324-2329, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    rig services; transfer pricing; tax planning;
    All these keywords.

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H27 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other Sources of Revenue

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