Payments Data
In 2019, the extractives sector continued to make sizeable tax payments to the UK Government. However, principally in the context of oil and gas decommissioning activity, parts of the sector also received repayments from Government of tax paid previously where loss carry back for decommissioning costs reduced earlier years’ taxable profits.
(Please note that payment data from previous years is available in the UK EITI reports that can be found by searching the "Publications and Reports" section of this website).
In order to improve public understanding of these payments, this report analyses these payments against each relevant tax and licence. The data is based on a reconciliation exercise where we asked companies to disclose their payments/repayments to HM Revenue & Customs (HMRC), The Crown Estate (TCE) or Crown Estate Scotland (CES) at group level above a threshold level (£86,000). Additionally, the reconciliation included companies that paid more than £1 million to the Oil & Gas Authority (OGA), even if the company did not make any other payment/repayment above a threshold. Government agencies were also asked to disclose what they receive from oil, gas, mining and quarrying companies. These figures were then reconciled by an independent administrator. The UK EITI website contains information on the oil and gas and mining and quarrying tax regimes.
This is the sixth year the UK has published reconciliation data. The tables below provide detailed information on and a reconciliation of payment streams between companies operating in the UK extractive sector and the relevant government agencies in 2019.
The reconciliation process consisted of the following steps:
- Analysis of the reconciliation scope prepared by the Multi-Stakeholder Group (MSG);
- Collection of payment data from government agencies and extractive companies which provide the basis for the reconciliation;
- Comparison of amounts reported by government agencies and extractive companies to determine if there were discrepancies between the two sources of information; and
- Contact with government agencies and extractive companies to resolve the discrepancies.
A total of 37 oil and gas companies and 17 mining and quarrying companies participated in compiling the report, with continuing high industry participation. This represents 99.30% of potential in-scope payments. We consider this to be a comprehensive picture as the vast majority of companies we approached provided their data. The MSG is grateful to all those companies that participated in the process this year. This report incorporates information collected up to 11 November 2020. Any information collected after this date has not been included in the report.
Scope
This year we have included the following payment streams:
- Oil and gas sector: combined total for Ring-Fence Corporation Tax (RFCT) and Supplementary Charge (SC); Petroleum Revenue Tax (PRT) and Advance Petroleum Revenue Tax; Petroleum Licence Fees; the OGA Levy; and payments to The Crown Estate and Crown Estate Scotland in respect of pipelines operated by companies that are engaged in UK extractive activities. The MSG agreed that companies which paid more than £1 million to the Oil and Gas Authority (OGA) should also be included in the reconciliation.
- Mining and Quarrying sector: Corporation Tax; extractive-related payments to The Crown Estate (TCE) and Crown Estate Scotland (CES); and monetary payments to local planning authorities as part of planning obligations.
Continuing to shadow the Reports on Payments to Government Regulations 2014, the materiality threshold remained at £86,000, applied to each revenue stream at group level. The government agencies required to report for 2019 UK EITI were HMRC, the OGA, TCE and CES.
Extractive Industries Payments to/refunds from UK Government
The two tables below summarise the reconciled extractive industries payments to and repayments by UK government agencies in 2019. All material differences have been reconciled.
Table 1: Detailed Extractive Industries Payments to/refunds from UK Government in 2019 [1]
This table provides an overview of the payments and refunds reported by extractive companies and government agencies in 2019, which provides a net total £1,513.69 million. Most of these transactions cover Ring-Fence Corporation Tax and Supplementary Charge payments to HMRC and licence fee payments to the OGA. A total of £10.55m was reported by out-of-scope and non-participating companies and this is subtracted from the overall total, leaving a total of £1,503.14m reported by government and a total of £1,503.13m reported by UK in-scope companies. The final reconciliation shows an unreconciled difference of £0.01m, which works out at 0.001% of the total, highlighting the transparency of the UK sector.
Payment stream: | Petroleum Licence Fees | OGA Levy | PRT | RFCT & SC | Mainstream CT | Payments to TCE | Payments to TCE | Payments to CES | Payments to CES | Total payments (£million) |
---|---|---|---|---|---|---|---|---|---|---|
Type of payee: | Oil & Gas | Oil & Gas | Oil & Gas | Oil & Gas | Other Mining & Quarrying | Oil & Gas | Other Mining & Quarrying | Oil & Gas | Other Mining & Quarrying | All |
Recipient: | OGA | OGA | HMRC | HMRC | HMRC | TCE | TCE | CES | CES | All |
Total reported by government agencies | 65.72 | 25.28 | -310.10 | 1,658.37 | 48.02 | 2.53 | 22.04 | 1.64 | 0.19 | 1,513.69 |
Total reported by government agencies for out-of-scope and non-participating extractive Companies (a) | 7.60 | 2.05 | 0.07 | -2.03 | 2.63 | 0.00 | 0.00 | 0.04 | 0.19 | 10.55 |
Total reported by government agencies for in-scope extractive companies | 58.12 | 23.23 | -310.17 | 1,660.40 | 45.39 | 2.53 | 22.04 | 1.60 | 0.00 | 1,503.14 |
Total reported by in-scope extractive companies | 58.12 | 23.23 | -310.17 | 1,660.39 | 45.39 | 2.53 | 22.04 | 1.60 | 0.00 | 1,503.13 |
Net unreconciled difference (b) | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 |
(a) Includes extractive companies out of scope of the reconciliation because their payments were below the agreed materiality thresholds and those with material payments that declined to participate in the reconciliation process.
(b) All net unreconciled differences are below the materiality deviation agreed by the MSG.
Table 2: Extractive Industries Payments to/refunds from UK Government in 2019
This table shows a breakdown of payments and refunds of the data in Table 1 (above) by sector (oil and gas and mining and quarrying) and government agency (OGA, HMRC, TCE and CES) for all the companies that participated in UK EITI for 2019.
Type of payee: | Oil & Gas | Other Mining & Quarrying | All | All | All | All | All (£million) |
---|---|---|---|---|---|---|---|
Recipient: | All | All | OGA | HMRC | TCE | CES | All (£million) |
Total reported by government agencies | 1,443.44 | 70.25 | 90.99 | 1,396.30 | 24.57 | 1.83 | 1,513.69 |
Total reported by government agencies for out-of-scope and nonparticipating extractive companies (a) | 7.73 | 2.82 | 9.65 | 0.67 | 0.00 | 0.23 | 10.55 |
Total reported by government agencies for in-scope extractive companies | 1,435.71 | 67.43 | 81.34 | 1,395.63 | 24.57 | 1.60 | 1,503.14 |
Total reported by in-scope extractive companies | 1,435.70 | 67.43 | 81.34 | 1,395.62 | 24.57 | 1.60 | 1,503.13 |
Net unreconciled difference (b) | 0.01 | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 | 0.01 |
(a) Includes extractive companies out of scope of the reconciliation because their payments were below the agreed materiality thresholds and those with material payments that declined to participate in the reconciliation process.
(b) All net unreconciled differences are below the materiality deviation agreed by the MSG.
Adjustments to the EITI reconciliation scope
Each year the number of companies assessed as in-scope changes as new companies slip above or below the threshold of £86,000 or companies’ merge. In 2019 the reconciliation was adjusted slightly during the reconciliation exercise as more information on the extractive nature and materiality of payments emerged and we believe that we have captured all material financial flows. The changes are detailed as follows:
Table 3: Adjustments to the EITI reconciliation scope
Sector | 2018 Scope | + | - | 2019 Scope |
---|---|---|---|---|
Oil & Gas | 39 | 8 | -10 | 37 |
Mining & Quarrying | 16 | 3 | -2 | 17 |
Total | 55 | 11 | -12 | 54 |
Oil & Gas sector
Six companies were added to the reconciliation scope when it was realised that their payments/repayments made to HMRC exceeding £86,000 for the calendar year 2019. One company was added to the reconciliation scope when it was realised that its payments/repayments made to CES exceeding £86,000 for the calendar year 2019. One company decided to participate voluntarily in the EITI reporting process.
Seven companies that were initially sent reporting templates were subsequently excluded from the reconciliation process because as part of the reconciliation exercise it emerged that they made/received no material payments/repayments during the calendar year 2019. Two companies were acquired by another in-scope company that submitted a combined reporting template. Accordingly, this reduced the number of in-scope companies by two.
One company declined to participate in the reconciliation process.
Mining & Quarrying sector
Three companies were added to the reconciliation scope when it was realised that their payments/repayments made to HMRC exceeding £86,000 for the calendar year 2019. Two companies declined to participate in the reconciliation process. The final number of companies (both oil and gas and mining and quarrying) included in the EITI reconciliation scope was therefore 54.
Data collection
Three potentially in-scope companies chose not to submit returns, one oil & gas company and two mining companies. As the total amount reported by government and extractive companies subject to the reconciliation constitutes more than 99% of the total reported by government agencies, the overall reconciliation outcome is substantial and satisfactory.
Breakdown of Reconciled Data by Company and Sector
The two tables below set out the detailed results of the reconciliation exercise with post-reconciliation differences noted between amounts reported as paid by in-scope extractive companies and amounts reported as received by government agencies.
Table 4: Oil & gas companies
This table lists, in alphabetical order, the oil and gas companies that participated in the 2019 reconciliation process and provides a breakdown of their total payments and receipts against each individual tax and licence regime.
£000 | As reported by Government Agencies | Total reported by company | ||||||
---|---|---|---|---|---|---|---|---|
RFCT & SC | PRT | Petroleum Licence Fees | OGA Levy | Payments to TCE | Payments to CES | Total | ||
Alpha Petroleum | 1,151.54 | 282.42 | 1,433.95 | 1,433.95 | ||||
Anasuria Hibiscus UK Ltd | 8,063.66 | 8,063.66 | 8,063.66 | |||||
Apache Corporation | 171,203.43 | 1,243.11 | 638.91 | 173,085.45 | 173,085.45 | |||
BHP Billiton Petroleum Great Britain Ltd | 17,071.02 | 17,071.02 | 17,070.02 | |||||
BP UK Group | -20,735.70 | 4,350.41 | 1,414.93 | 210,64 | -14,759.72 | -14,758.72 | ||
CalEnergy Gas Ltd | -348.96 | -348.96 | -348.96 | |||||
Centrica | 40,543.68 | -70,077.77 | 4,774.87 | 1,846.69 | 395.45 | -22,517.09 | -22,517.31 | |
Chrysaor | 198,515.62 | 1,762.57 | 3,476.26 | 2,431.28 | 397.90 | 176.33 | 206,759.95 | 206,759.95 |
CNOOC Petroleum Europe Limited (formerly Nexen Petroleum UK Ltd) | 274,584.52 | 4,652.88 | 673.61 | 279,911.01 | 279,911.03 | |||
CNR International UK Investments Ltd | 16,474.91 | 304.49 | 724.48 | 17,503.88 | 17,503.88 | |||
Dana Petroleum Ltd | -941.49 | -6,089.16 | 620.30 | 563.75 | -5,846.60 | -5,852.61 | ||
ENI UK Ltd | 129,031.45 | -3,744.71 | 2,407.57 | 355.74 | 910.48 | 128,960.52 | 128,960.52 | |
EnQuest PLC | 8,508.55 | 1,036.57 | 1,005.27 | 86.38 | 10,636.78 | 10,637.78 | ||
Equinor UK Ltd | 2,335.26 | 447.26 | 2,782.52 | 2,782.52 | ||||
ExxonMobil International Ltd | 97,695.27 | -78,693.40 | 19,001.87 | 19,001.87 | ||||
Hurricane Energy Plc | 2,214.78 | 112.04 | 2,326.81 | 2,326.81 | ||||
IGas Energy PLC | 1,073.98 | 94.06 | 1,168.03 | 1,168.03 | ||||
INEOS Industries | -1,296.83 | -705.35 | 3,545.65 | 288.03 | 129.00 | 215.31 | 2,175.81 | 2,175.43 |
Iranian Oil Company (U.K.) Ltd | 15,568.27 | 15,568.27 | 15,568.27 | |||||
Ithaca Energy UK | 168,586.46 | -2,591.99 | 1,072.34 | 560.72 | 111.16 | 167,738.70 | 167,739.17 | |
JX Nippon Exploration and Production UK Ltd | -7,294.36 | -2,066.02 | 86.97 | -9,273.41 | -9,273.41 | |||
Neptune Energy (Engie E&P UK Ltd) | 2,427.12 | 495.21 | 2,922.33 | 2,922.33 | ||||
NOBLE ENERGY GROUP | -707.06 | -707.06 | -706.64 | |||||
NSMP Operations Ltd | 193.42 | 193.42 | 193.42 | |||||
ONE-Dyas UK Ltd (Formerly Oranje-Nassau Energie Resources Ltd) | 25,070.10 | 1,006.77 | 26,076.87 | 26,076.87 | ||||
Perenco UK Ltd | 86,387.17 | 3,369.33 | 2,100.87 | 700.66 | 92,558.02 | 92,557.98 | ||
Premier Oil PLC | -349.52 | 2,404.90 | 676.04 | 2,731.41 | 2,731.41 | |||
Repsol Sinopec Resources UK Ltd | -52,442.92 | -9,977.28 | 2,198.85 | 2,196.27 | -58,025.07 | -58,025.07 | ||
RockRose UKCS8 LLC (formerly Marathon Oil UK LLC) | 28,802.47 | -12,426.83 | 547.38 | 470.17 | 17,393.19 | 17,390.92 | ||
Royal Dutch Shell PLC | -25,421.06 | -87,905.71 | 2,124.23 | 2,749.06 | 220.91 | -108,232.58 | -108,230.95 | |
SAGE North Sea Ltd | 190.61 | 190.61 | 190.61 | |||||
SICCAR POINT ENERGY | 2,886.16 | 97.42 | 2,983.58 | 2,983.58 | ||||
SUMMIT Exploration and Production | 7,435.00 | 7,435.00 | 7,435.00 | |||||
Suncor Energy UK Ltd | 206,500.00 | 206,500.00 | 206,500.00 | |||||
TAQA Bratani Ltd | 33,428.56 | -16,915.31 | 807.72 | 723.40 | 18,044.36 | 18,044.36 | ||
TOTAL Group / Total Holdings UK Limited | 234,741.49 | 5,999.87 | 2,282.22 | 189.66 | 243,213.24 | 243,210.54 | ||
TULLOW OIL PLC | -19,008.52 | -19,008.52 | -19,008.52 | |||||
Total | 1,660,401 | -310,167 | 58,119 | 23,230 | 2,533 | 1,594 | 1,435,711 | 1,435,705 |
Table 5: Other mining & quarrying companies
This table reports, in alphabetical order, the mining and quarrying companies that participated in the 2019 process and provides a breakdown of their total corporation tax payments and receipts and their total payments made to TCE: there were no payments by these companies to CES.
£000 | As reported by Government Agencies | Total reported by company | ||
---|---|---|---|---|
Mainstream Corporation Tax | Payments to TCE | Total | ||
Aggregate Industries UK Ltd(a) | 12,260.78 | 680.18 | 12,940.96 | 12,940.96 |
Albion Stone | 183.06 | 90.63 | 273.70 | 273.70 |
Breedon Group PLC | 15,094.55 | 248.23 | 15,342.78 | 15,342.98 |
Brett Group | -279.26 | -279.26 | -279.26 | |
Britannia Aggregates Ltd | 518.79 | 518.79 | 518.79 | |
Cemex UK Materials Ltd | 281.61 | 5,637.02 | 5,918.63 | 5,918.63 |
Cleveland Potash Ltd | 830.27 | 830.27 | 830.27 | |
DEME Building Materials Ltd | 94.09 | 1,888.41 | 1,982.50 | 1,982.50 |
Hanson UK Group | 3,285.85 | 3,285.85 | 3,279.42 | |
Irish Salt Mining & Exploration Co. Ltd | 1,927.76 | 1,927.76 | 1,927.76 | |
Llanelli Sand Dredging Ltd | 346.85 | 346.85 | 346.85 | |
Saint-Gobain Ltd(b) | 16,500.00 | 16,500.00 | 16,500.00 | |
Tarmac Holdings Limited | -4,299.39 | 5,065.50 | 766.12 | 766.12 |
The Banks Group | 2,620.66 | 2,620.66 | 2,620.00 | |
Van Oord UK Ltd | 668.74 | 460.74 | 1,129.48 | 1,129.48 |
Volker Dredging Ltd | 2,031.37 | 2,031.37 | 2,031.37 | |
Westminster Gravels Ltd | 339.00 | 959.05 | 1,298.05 | 1,298.55 |
Total | 45,392 | 22,043 | 67,435 | 67,428 |
(a) Including the payments made by Kendall Bros (Portsmouth) Ltd
(b) Including the payments made by Saint-Gobain Construction Products UK Limited
There were additional, relatively minor, payments reported by the relevant government agencies for companies that were in scope but whose payments were below the agreed materiality thresholds and for in-scope companies that did not participate in the reconciliation process. The totals of such payments are reported in the summary tables above and, for petroleum licence fees and the OGA Levy, are included in the online disclosure of project level payments and repayments at https://www.ukeiti.org/publication/uk-eiti-payments-report-2019, which also includes reconciled field level data on Petroleum Revenue Tax and some project-level payments to TCE and CES. .
Separate to the UK EITI payment reconciliation exercise and complementing the information in this report, a number of companies have reported their 2019 payments to governments around the world, including to UK government entities, under the EU Accounting and Transparency Directives. There can be differences in the amounts reported under UK EITI and under the EU Accounting and Transparency Directives. These differences can relate to interpretation of the scope of payment categories, reporting currency and timing. The Natural Resource Governance Institute maintains a database of Payments to Governments reports submitted by companies under EU/EEA and equivalent Canadian legislation. [2]
Section 106 (Town and Country Planning Act 1990) Payments
Payments to local planning authorities in England and Wales are required under section 106 of the Town and Country Planning Act 1990 and equivalent legislation in Scotland and Northern Ireland. These are used to mitigate the impact of extractive activities on the local community and benefit local communities. These payments can provide external benefits, including the improvement of local road networks or community facilities.
Only one company reported material payments under section 106 or equivalent legislation. It was Aggregate Industries UK Ltd, who reported total payments for £113,326.
Beneficial Ownership
Further information on the UK’s Beneficial Ownership regime can be found on the Beneficial ownership page. Beneficial Ownership data for each year is available in each individual UK EITI report available in the Publications & Reports section of the website.
Approach and Methodology
The UK EITI approach and methodology to reconciliation has evolved over time and is kept under review by the MSG. The approach and methodology to the collection and publication of information on extractive-related payments to the UK government in 2019 is available in the 2019 Approach and Methodology publication.
Revenue Allocations
The UK government publishes full details of its income and expenditure (outturn figures, estimates and forecasts). Budget forecasting is overseen by the independent Office for Budget Responsibility (OBR). Government accounts are audited by the National Audit Office (NAO) and scrutinised by the Public Accounts Committee. Read more information on the Revenue Allocations in 2019.
- Payments for petroleum licence fees and field-level petroleum revenue tax payments and some payments to TCE and CES are included in the online disclosure of project level payments and repayments at (https://www.ukeiti.org/publications-reports)
- www.resourceprojects.org.
UK-incorporated companies, where a parent company is not reporting in a non-UK jurisdiction, file payments reports online with the Companies House Extractives Service: https://extractives.companieshouse.gov.uk
London Stock Exchange Main Market-listed companies (including those that are both UK and non-UK incorporated) announce or file payments reports online with Morningstar, the UK National Storage Mechanism: http://www.morningstar.co.uk/uk/NSM
- Payments DataMining & Quarrying / Oil & Gas
- Payments DataMining & Quarrying / Oil & Gas
- Payments DataMining & Quarrying / Oil & Gas