Calculating petroleum royalty
Draft royalty ruling
Comments are now open on the draft royalty ruling on flared or vented petroleum (PGA002).
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.