FIG issues Public Consultation into taxation for the oil industry (Feb 2018)

Today the Falkland Islands Government has issued a public consultation document covering the taxation regime for oil companies operating in the Falkland Islands and their associated supply chain partners. This consultation will be open until Friday 6 April 2018 for responses from interested parties, which will be summarised and fed into final policy and legislative design later during 2018.

FIG and the Portfolio Holder for Government Services (including Taxation and Fiscal Policy), the Hon. Roger Spink MLA feels that this is the right time to consult with Industry on oil taxation given the potential development opportunities within the North Falklands Basin and the wider region. MLA Spink said: “I am pleased to report that this week the Executive Council of the Falkland Islands Government approved the release of the document ‘Open for Investment: a consultation on the Taxation regime for the Falkland Islands’ for public input and discussion. It is important that FIG is open and transparent about future fiscal policy for the oil industry to develop here in the Falkland Islands and we strongly encourage the views and input of the business communities both locally and those based overseas with a view to doing business in the Falkland Islands in the coming years.”

The consultation is the next step in a project to review the tax legislation currently in place and implement a programme of reform and improvement to bring it up to date with international best practice, including the OECD’s Base Erosion Profit Shifting (BEPS) agenda. The consultation is focused on areas of strategic importance to the oil industry developing in the Falkland Islands, including the Corporation Tax treatment of finance and interest expenses, leasing and hire purchase, and decommissioning.

The consultation includes specific consultation questions on the main areas and invites comments and supporting evidence for Industry to provide to shape the future tax legislation to ensure it meets Government objectives whilst being internationally competitive and simple to comply with.

In order to ensure a good level of engagement from stakeholders, FIG will be working with the Falkland Islands Petroleum Licensees Association (FIPLA) and the Falkland Islands Chamber of Commerce to spread the word of the consultation to the maximum number of interested parties.

This consultation will focus on the tax regime for oil activities within Falkland Islands waters, with a separate consultation on the Environmental Impact Statement having already commenced which is focussed on environmental regulations and protecting the natural habits in the region, led by the Department of Mineral Resources.

The outcome of this consultation is expected to be new legislation enacted in 2018. Relevant documentation can be downloaded at

For more information please contact Claire Ralph, Head of Tax on +500 28476 or by e-mail to

Public consultation on Environmental Impact Statement (Jan 2018)

An Environmental Impact Statement (EIS) has been submitted to the Falkland Islands Government by Premier Oil Exploration and Production Limited. The EIS covers the proposed development activity for Phase 1 of the offshore Sea Lion oilfield, located in the North Falklands Basin approximately 120 miles to the north of the Falkland Islands.

The statutory 42-day public consultation period began on 26th January 2018.

Electronic copies of the document in its entirety can now be found on the Premier Oil website (

Copies of the Non-Technical Summary can be obtained from the Department of Mineral Resources, Ross Road, Stanley (telephone 27322 or email

Premier Oil will shortly publish details of public engagement plans during the consultation period. Further information may be found in the next edition of the Penguin News.

Written representations in relation to the Environmental Impact Statement must be received at the Department of Mineral Resources, Ross Road, Stanley (or by email to the above address) by Friday 9th March 2018.

Offshore Minerals Environmental Legislation Consultation (Sep 2017)

The Department of Mineral Resources is carrying out a public consultation on a range of proposed legislative measures applying to the offshore oil and gas industry. The proposed legislation aims to bolster existing environmental regulation provisions in the Offshore Minerals Ordinance and focuses on:
- Environmental management, audit, and reporting requirements
- Oil Pollution Emergency Plan (OPEP) requirements
- Inspection, enforcement, and intervention powers
- Environmental damage liability provisions
A copy of the consultation paper and response form can be downloaded from:

or can be obtained in electronic or hard copy from the Department of Mineral Resources, contact details below.
Responses to the consultation must be submitted to the Department by Friday 20th October 2017.
A public presentation on the proposals will be held at the Chamber of Commerce, Stanley on Thursday 21st September at 5pm.
For further information on the proposed legislation or a copy of the consultation documentation, please contact:
Roddy Cordeiro
Department of Mineral Resources

Telephone +(500) 27322

New Export Guidelines (Dec 2017)

The Falkland Islands Government has recently developed export guidelines for geological items to try and answer frequently asked questions, particularly regarding the export of scientific samples or souvenirs.

These guidelines are available in English and Spanish from the Biosecurity page

New Production Licence Extension Guidance (June 2016)

The Falkland Islands Government has released a new guidance note covering changes to licensing policy for offshore Production Licences. Taking into account the current worldwide difficulties that are being faced by the oil industry, Executive Council recently considered and approved a package of measures to support current Production Licence holders who hold interests in the Falkland Islands.

Over the last six years, the oil and gas industry has invested almost two billion dollars in offshore exploration and data acquisition around the Falkland Islands, discovering several potentially commercial hydrocarbon resources with potentially in excess of 1 billion barrels of recoverable crude oil and gas condensate. The sustained activity throughout this period has delivered significant benefits to the Falkland Islands economy, and private sector businesses have also made significant investments to allow them to participate in the supply chain.

The new measures address the short-term impact of the current oil price environment and put in place a framework that will allow licensees to progress both development of discovered resources, and new exploration work, and to achieve the first successful commercial oil production in the Falkland Islands.

Please visit our Downloads page and scroll to the Guidance Notes section for the new version.

Photo of the Week

Latest News

  • 1
  • 2
  • 3