Investor Presentaiton
Energy and Energy Related Tax regime
measure
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Overview of measure
The Government proposed measure of increasing the SPT threshold effective 1 January 2021 to US$75 per
barrel for the period 2021-2022 for small onshore oil producers is aimed directly at alleviating this issue. The
Minister indicated that at the end of the two year period the increased threshold will be reviewed for continuity
and a similar measure is also being considered for offshore oil producers.
The Government anticipates that the losses in revenue from SPT will be minimal and will be offset by increased
drilling activity and greater oil production leading to employment generation and the associated increased taxes
paid by contractors and their workers. An increase in the SPT threshold to US$75 per barrel can potentially
ease the financial burden of the small onshore oil producers by improving cash flow when prices hover around
the US$50-60 per barrel range. However, the U.S. Energy Information Administration (EIA) Short-term Energy
Outlook forecasts monthly Brent spot prices will average US$44 per barrel during the fourth quarter of 2020
and rise to an average of US$49 per barrel in 2021. Even by the most optimistic forecast by industry experts,
there is no expectation that prices will reach US$75 per barrel in the near future.
What's Inside
2 Click to Navigate
Territory Leader's message
Tax Leader's thoughts
Budget overview
Budget fundamentals - 2021
Historical economic data
Energy and energy related tax regime
Corporation tax
Value Added Tax & other indirect taxation
Personal Income tax
Stamp Duty
Summary of other measures
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About PwC
PwC | Trinidad and Tobago 2021 national budget
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