The economic impact of petroleum royalty reform on Turkey's upstream oil and gas industry

Levent Aydın ()

Energy Policy, 2012, vol. 43, issue C, 166-172

Abstract: The aim of this paper is to examine the economic impact of the royalty reform. The draft Turkish petroleum Law introduces two important fiscal changes to increase to increase domestic petroleum production, further national petroleum supply, attract investors and harmonize its laws with those of the European Community: (1) progressive sliding royalty relief on oil and gas production leases and (2) 50% of the royalty shall be transferred to province where the production lease exists.Results included in this analysis indicate that there would be 2% increase in oil production thanks to 128 oil fields extending economic life and 0.5% increase in gas production thanks to 63 gas fields due to their profitability in the forecasted period. Half of royalty is transferred to low per capita income provinces and tends to contribute distribution of income. However, half of gas royalty is transferred to high income per capita provinces.

Keywords: Upstreamn; Oil; Royalty (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421511010548
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:43:y:2012:i:c:p:166-172

DOI: 10.1016/j.enpol.2011.12.048

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().