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Oil Infrastructure Investment Program (OIIP)

The Oil Infrastructure Investment Program (OIIP) offers transferable royalty/freehold production tax credits for qualified projects at a rate of 20 per cent of eligible program costs.

OIIP recognizes all costs necessary to construct and bring an approved project into service.

The OIIP is open to new or expanded:

  • Transmission pipelines.
  • Feeder pipelines (including trunk and branch pipeline systems).
  • Pipeline terminals.
  • Enabling infrastructure investments that are directly linked and dedicated to an eligible project and is required to bring that project into service, may also be considered as eligible.

OIIP is administered by the Ministry of Energy and Resources.


1. Benefits

  • The credits are fully transferable. This gives non-producers/non-royalty payers an opportunity to benefit from the program because they have the ability to transfer credits to royalty/freehold production tax payers. Also, OIIP encourages multi-company projects as costs can be incurred by an entity other than the principal applicant.
  • OIIP has a project-specific royalty credit cap of $40 million (i.e. a maximum of up to $200 million in recognized project costs).
  • Credits can be claimed at a rate of 20 per cent of total credits in the first calendar year of operations, 30 per cent in the second calendar year, and 50 per cent in the third calendar year.

2. Eligibility

  1. Increases in pipeline capacity in Saskatchewan – the ministry must be satisfied that the project results in an increase in pipeline capacity that is not considered to be redundant service.
  2. Eligible costs – the eligible project must involve a minimum investment of $10 million in eligible costs.

3. How to Apply

To apply for the OIIP, companies need to complete and submit the OIPP Application Form. If you have questions about the application process, refer to the OIIP Program Overview and Application Instructions or contact oiip@gov.sk.ca. Completed OIIP Application Forms may be submitted to the Ministry of Energy and Resources via oiip@gov.sk.ca.

The ministry will be accepting applications from April 8, 2020, to March 31, 2025.


5. Further Information

For additional information on the program, contact oiip@gov.sk.ca.

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