Oil Infrastructure Investment Program (OIIP)
The Oil Infrastructure Investment Program (OIIP) offers transferable Crown royalty and freehold production tax credits for qualified projects at a rate of 20 per cent of eligible project costs.
OIIP is open to new or expanded oil, refined petroleum product, natural gas liquids or carbon dioxide pipeline projects, including:
- 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 are required to bring that project into service, may also be considered as eligible.
OIIP is administered by the Ministry of Energy and Resources.
- The 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, gas and helium Crown royalty and 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 awarded credit cap of CAD$40 million (i.e., a maximum of up to CAD$200 million in recognized eligible costs per project).
- 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.
- OIIP can be used alongside other incentive and grant programs available in Saskatchewan.
- Directly increases oil or carbon dioxide 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 a redundant service.
- Eligible costs – the eligible project must involve a minimum investment of CAD$10 million in eligible costs.
- Has not become operational before the eligible project application is submitted.
3. How to Apply
To apply for OIIP, companies must complete and submit the OIIP Application Form. If you have questions about the application process, refer to the OIIP Program Overview and Application Instructions or contact email@example.com. Completed OIIP Application Forms may be submitted to the Ministry of Energy and Resources via firstname.lastname@example.org.
The Ministry of Energy and Resources will be accepting applications from April 8, 2020, to March 31, 2025.
4. Application Documents
5. Further Information
For additional information on the program, contact email@example.com.