7 - Completing the spreadsheet "Tariffinntekter" and Tariff Costs

Tariff income and tariff costs shall be stated, assuming that they entail a payment obligation.

Tariffs per field

Tariffs shall be equivalent to 100 per cent of the field (or 100 per cent of the Norwegian share). If all licensees do not receive the same tariffs/have the same tariff costs, an estimate must be calculated, e.g., calculated as the operator's tariffs / the operator's share in the joint venture.

Reporting period

Tariff income/tariff costs shall, as for the profile collection, be reported for the entire license period for the project, or for as long as income/costs are expected to occur for the project (longest period).

7.1 Tariff income (only from fields with projects in RC 1-2)

Tariff income shall be reported in the sheet named “Tariffinntekter” for fields that receive tariff from other fields/projects and shall include tariff income only from projects in RC1-2. Tariff income from projects in RC3-4 shall not be included by the receiver but is to be reported as tariff cost by these projects, in the profile sheet, columns BM to BR, ref chapter 7.2.

The fields that pay for services in the form of money, shall be reported in row 7. The income flows are to be stated in separate columns. At the top of the column (row 7), select the name of the field that purchases services from the drop-down list. In row 8 it is possible to select a type of tariff from the drop-down list. Tariff revenues also comprise a possible reimbursement of operating costs because of cost sharing agreements with associated fields. Free text can be added in row 9, if needed. Space has also been allocated for more free text below the table.

Delimitation

Tariff income shall include all payments for services that are performed for another field or outside the Norwegian shelf in connection with treatment, transport, storage, modulation, etc. of petroleum. Tariff income shall also include any reimbursement of operating costs/investments that the relevant project may have covered by other parties because of agreements for treatment and/or transport of petroleum.

Total tariff income is automatically retrieved in Profil 1, from the data entered in the "Tariff income" spreadsheet.

7.2 Tariff costs

Tariff costs are found on the profile spreadsheets and shall be reported for projects in RC3-4 that have such costs. However, if you have any information or data for RC5 concerning OPEX sharing and/or CAPEX sharing, we would appreciate that you also report this data.

With exception of tariffs on foreign installations, tariff costs in RC0-2 shall not be reported. The tariff costs to Norwegian installations, associated with the projects in RC0-2, will be accounted for when the fields report income from third-party processing, and pipelines and terminals provide estimates of their income. The Directorate incorporates and allocates this income as costs for the relevant fields as part of the comparison of the figures associated with National Budget Reporting.

The types of data are divided between import of tariff services (foreign installations), oil transport, gas transport, processing/treatment, land facilities, direct payment of operating costs, and direct payment of investment costs. These are summarized for each project. The total column will be completed and calculated automatically.

You should indicate the intended location where the service is to be performed in the comments space above each data type (row 32). Only one provider per datatype, further explanation and other providers should be described in the larger text box above.

 
Definition and delimitation

Tariff costs shall include all payments for services that are performed by another field on the Norwegian shelf in connection with treatment, transport, storage, modulation, etc. of petroleum.

• Only tariff costs that are or will be included in the licence budget should be reported. Costs that only occur in the operator's internal accounts should not be reported.
  
  
• For the purposes of this reporting, import of tariff services (foreign installations) comprises payments for use of the Brae pipeline, the Brent oil and gas pipeline (Flags) and any other foreign installations. The Directorate receives a calculation basis for Norpipe UK and Norsea Pipeline. Tariffs to Norpipe UK and Norsea Pipeline are therefore not included.
  
  
• Oil transport – Costs associated with oil transport before the norm price point, i.e., transport costs that are deductible in relation to petroleum tax.
  
  
• Gas transport – Costs associated with gas transport up to the sales location, i.e., transport costs that are deductible in relation to petroleum tax.
  
  
• Processing/treatment – Costs associated with processing and treatment on third party facilities, including storage, modulation, etc. of petroleum, i.e., processing and treatment costs that are deductible in relation to petroleum tax.
  
  
• Land – Costs associated with processing and treatment including storage, modulation, etc. of petroleum that takes place in terminals on land, i.e., processing and treatment costs in land facilities that are deductible in relation to petroleum tax.
  
  
• Cost sharing OPEX related to cost sharing agreement: Operating costs connected to a host field. The name of the host field intended to be used, shall be expressed in the comment box above the data type.
  
  
• Cost sharing CAPEX related to cost sharing agreement: Investments that should be made on a host field based on a tie-into this field. The name of the host field intended to be used, shall be expressed in the comment box above the data type.

Note that import of tariff services (foreign installations), i.e., costs associated with the use of transport or processing facilities that are either geographically or in terms of the Petroleum Act outside the Norwegian shelf area, but that nevertheless are deductible in relation to petroleum tax, shall still be reported in a separate column (BL) in the profile collection. This applies both to fields in RC0-2 as well as projects in RC3-4.

Any tariff costs after expiration of the license period for the project, can be reported as an estimated annual amount, e.g., the level before the license period expired.

Only the Norwegian part of the tariffs shall be reported.

If there are other significant operating costs other than tariffs/rebates that are not covered by the joint venture or equivalent budgets, information must be provided separately, if applicable. Amounts are significant if they exceed NOK 50 million per year, or NOK 300 million in total over the next ten years.