Statutory market values

Where a participator in a U.K. oil field disposes of oil, liquefied petroleum gases (LPGs) and condensate otherwise than by way of a sale at arm's length the disposal is taxed as if it took place at a statutorily defined market value.

A separate market value is produced for each taxable crude blend that is the subject of non arm's length disposals. Under the new pricing rules that will operate from 1 July 2006 (subject to approval of the Finance Bill by the House of Commons), there are two types of crude for valuation purposes.

Category 1 oil

Those crude oils that are valued using Price Reporting Agency data. At 1 July 2006 these crudes are Brent, Ekofisk, Flotta, Forties and Statfjord.

Category 2 oil

All other blends (including LPG’s and Condensates) are classed as category 2. Category 2 oils will be valued with reference to deal data supplied to LBS Oil & Gas (formerly OTO) in PRT returns. The methodologies will aim to resemble the way each particular blend is sold at arms length and will be agreed with Industry.

Category 1 values

• Year ending 31 December 2008 (PDF 43K)
• Year ending 31 December 2007 (PDF 157K)
• Year ending 31 December 2006 (PDF 89K)

Any enquiries or comments on values should be directed by email to Andrew Parrock (Telephone 020 7438 6841).