Guidance: Statutory market values for oil

Updated: The daily values for all Category 1 crude oils for September 2016 have been added.

Introduction

Statute provides for the use of a defined market value where a participator in a UK oil field disposes of crude oil, liquefied petroleum gases (LPGs) and condensate otherwise than by way of a sale at arm’s length.

A separate market value is produced for each taxable crude blend and there are 2 types of crude oil for valuation purposes.

Category 1 oil

The crude oils that are valued using Price Reporting Agency data. At present these crudes are:

  • Brent
  • Ekofisk
  • Flotta
  • Forties
  • Statfjord

The category 1 values for:

Category 2 oil

All other blends (including LPGs and condensates) are classed as category 2. Category 2 oils are valued with reference to deal data supplied to the Large Business Service Oil and Gas Sector in Petroleum Revenue Tax Returns. The methodologies used resemble the way each particular blend is sold at arm’s length and are agreed with industry.

Source: HMRC