Oil and Gas Processing Investment Incentive (OGPII)

The Oil and Gas Processing Investment Incentive (OGPII) offers transferable oil and gas royalty/freehold production tax credits for qualified greenfield or brownfield value-added projects at a rate of 15 per cent of eligible program costs -The oil and gas royalty credits are fully transferable which gives non-producers/non-royalty payers an opportunity to benefit from the program, because they have the ability to transfer credits to oil and gas royalty/freehold production tax payers. Also, OGPII encourages multi-company projects as costs can be incurred by a firm other than the principal applicant. -OGPII has a project-specific awarded credit cap of CAD$75 million (i.e., a CAD$500 million project) for oil, gas, and helium projects, and CAD$70 million for chemical fertilizer projects. -Credits can be claimed at a rate of 20% of total credits in the first calendar year of operations, 30% in the second calendar year, and 50% in the third calendar year. -OGPII can be used alongside other incentive and grant programs available in Saskatchewan.

2029-03-31

$500,000,000

Tax Credit

Oil & Gas

For Profit

This grant is restricted to whole of Canada

This grant is age restricted from 18 to 100

Company Requirements

Companies in the oil, gas, and helium sector as well as chemical fertilizer facilities in Saskatchewan

Project Eligibility

OGPII is open to value-added projects across all segments of Saskatchewan's oil, gas, and helium sector as well as chemical fertilizer facilities. Eligible projects include:
Refineries/upgrading facilities (i.e.,. partial upgraders, asphalt production, and sulphur removal units);
Petrochemical facilities (i.e., methanol, ammonia, polypropylene, olefins, and ethylene);
Associated gas commercialization projects (ex. processing facilities, waste-gas-to-power etc.);
Regional gas gathering projects and projects with multiple phases may also be considered under a single project application;
Helium processing or liquefaction facilities;
Carbon capture, utilization, and storage for enhanced oil recovery;
Commercialization of oil and gas production byproducts and waste products (i.e., lithium extraction from produced water); and
Chemical fertilizer facilities.

Eligible Activities

Eligible Activity – all activities that add or create value by processing, transforming, and/or upgrading upstream oil, gas, and helium industry products, by commercializing upstream oil and gas production byproducts and waste products, or by increasing value-added chemical fertilizer production may be considered eligible. Eligible projects can include new (greenfield) facilities or expansions (brownfield) of existing facilities, as well as all enabling infrastructure that is required to bring the project into operation.
Increase in Processing Capacity – the Ministry of Energy and Resources must be satisfied that the project results in a significant increase processing capacity in Saskatchewan's oil, gas, helium or chemical fertilizer industry.
Eligible Costs – the eligible project must involve a minimum investment of CAD$10 million in eligible costs.