udvindingsandel

Udvindingsandel is a term used in Danish resource management and contract law to describe the portion of extracted resources or the related economic value that is allocated to a particular party, typically a state actor or partner, under a production sharing framework. In practice, udvindingsandelen defines how much of the produced resource or its revenue remains for the owner of the resource after costs are recovered by the operator.

In a production sharing contract, the operator first recovers its allowable costs (often referred to as cost recovery or cost oil). After costs are recovered, the remaining production is shared between the operator and the government or other parties according to the agreed udvindingsandel. The specific share can be defined as a percentage of gross production or of the net production value, and it may be influenced by factors such as price, production volume, and permitted cost allowances. The concept is commonly applied in oil and gas concessions as well as in mining and other extractive industries, where state involvement or participation is significant.

Udvindingsandel is distinct from fixed royalties, which are a predetermined percentage of production value paid regardless of cost recovery. In production sharing regimes, the government’s or partner’s share can be more variable, depending on project economics and the contract structure. The term is part of broader fiscal regimes for natural resources, alongside royalties, taxes, and direct state participation, and is typically negotiated within licenses or production sharing agreements and subject to regulatory oversight.