Calculating petroleum royalty

Petroleum is produced when it is released or recovered to ground level from a natural underground reservoir. Your petroleum royalty liability is based on the volume of liable petroleum produced in a return period.

The volume model is used for calculating petroleum royalty. Under this model, you need to determine:

• the total liable volume of petroleum produced during the period
• the classification (e.g. domestic gas, supply gas, project gas or liquid petroleum)
• the royalty rate that applies to each class of petroleum.

This guide explains the volume model, the rates used to calculate petroleum royalty, arrangements for non-tenure holders and the transitional arrangements for petroleum produced before October 2020.