Calculating petroleum royalty
New petroleum royalty regulation changes gas swap arrangements
The Petroleum and Gas (Royalty) Regulation 2021 applies from 1 September 2021.
Find out about the extended gas swap arrangements.
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 royalty for petroleum produced from 1 October 2020. 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 that apply from 1 October 2020, transitional arrangements from the previous royalty model, and how to calculate royalty.