Updated August 2026 · Verified against Government of Saskatchewan — Ministry of Energy and Resources guidelines
Tax Credit Offset Est. 2019
Tax Credit Provincial Active

Saskatchewan Oil and Gas Processing Investment Incentive (OGPII)

Government of Saskatchewan — Ministry of Energy and Resources
Maximum Credit
15% of eligible costs
Continuous intake — applications accepted until March 31, 2029
Visit Official Program →
Difficulty
Hard
Payment
Tax Credit Offset
Trend
Stable
First-Timers
Credit rate
15%
Saskatchewan Oil and Gas Processing Investment Incentive (OGPII) provides up to 15% of eligible project costs — CAD$1.5 million at the CAD$10 million minimum eligible-cost threshold, to a CAD$75 million per-project cap (reached at CAD$500 million in eligible costs). A transferable Crown royalty and freehold production tax credit worth 15% of eligible costs for greenfield or brownfield value-added processing projects in Saskatchewan's oil and gas sector, plus chemical fertilizer facilities. The program covers up to 15% of eligible costs. Applications are accepted on an ongoing basis.
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Eligibility & Details

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Program Description

A transferable Crown royalty and freehold production tax credit worth 15% of eligible costs for greenfield or brownfield value-added processing projects in Saskatchewan's oil and gas sector, plus chemical fertilizer facilities. Eligible project types are fixed by regulation: refineries, upgrading facilities, petrochemical facilities, associated gas commercialization projects, associated gas pipeline gathering systems, carbon capture utilization and storage for enhanced oil recovery, byproduct and waste commercialization, and chemical fertilizer facilities. The project must involve at least CAD$10 million in eligible costs and deliver a significant increase in processing capacity. Per-project credits are capped at CAD$75 million. Helium and lithium processing projects moved to the Critical Minerals Processing Investment Incentive (CMPII) in 2024 and should apply there instead.

Eligibility Requirements

  • Must be an incorporated corporate entity — the application form requires a copy of the company's Certificate of Incorporation, and the program defines the applicant as "the corporate entity that submits an application to the OGPII program"
  • Project must be located in Saskatchewan
  • Project must be one of the types fixed by regulation: a refinery; an upgrading facility; a petrochemical facility; an associated gas commercialization project; an associated gas pipeline gathering system; a carbon capture, utilization and storage for enhanced oil recovery project; a commercialization of oil and gas production byproducts or waste products project; or a chemical fertilizer facility
  • Project must add or create value by processing, transforming and/or upgrading upstream oil, gas or associated gas products, by commercializing upstream oil and gas production byproducts and waste products, or by increasing value-added chemical fertilizer production
  • Project must result in a significant increase in processing capacity in Saskatchewan's oil, gas or chemical fertilizer industry, as determined by the Minister
  • Project must involve a minimum investment of CAD$10 million in eligible costs
  • Project must not have become operational before the application is submitted
  • Both new (greenfield) facilities and expansions (brownfield) of existing facilities are eligible, along with the enabling infrastructure required to bring the project into operation
  • Carbon capture, utilization and storage projects must be fully located in Saskatchewan and must show either that more than 50% of all incrementally captured CO2 will be used for enhanced oil recovery once operations begin, or that an annual average of at least 25,000 tonnes of incrementally captured CO2 will be used for enhanced oil recovery for 10 consecutive years after operations commence
  • Helium and lithium processing projects are no longer eligible under OGPII — that eligibility moved to the Critical Minerals Processing Investment Incentive (CMPII)
  • Final eligible costs must be audited by a qualified arm's-length third party, normally a licensed Chartered Professional Accountant issuing an Assurance Report under Canadian Auditing Standards (CAS) 805
  • Applicants do NOT need to be a producer or a Crown royalty payer — credits are fully transferable to any corporate entity holding an IRIS Business Associate ID
Provinces
Industries
Natural Resources Energy Manufacturing
Business Stage
Growth Expansion Established

Quick Assessment

Difficulty
Hard
Competition
Low
First-Timer
Not rated

Funding Details

Amount
15% of eligible project costs — CAD$1.5 million at the CAD$10 million minimum eligible-cost threshold, to a CAD$75 million per-project cap (reached at CAD$500 million in eligible costs).
Type
Tax Credit
Level
Provincial
Credit rate
Up to 15% of eligible costs
Deadline
Continuous intake — applications accepted until March 31, 2029

Program Scorecard

Competition, effort, and approval at a glance

Competition
Low
Deadline
Ongoing
Approval
Varies
Accessibility
--/5
Competition
--/5
Approval Rate
--%
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What's in this Playbook

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How to claim

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Insider Tip

Credits arrive slowly by design — 20% of the total in the first calendar year of operations, 30% in the second, 50% in the third — so model this as a three-year receivable rather than a lump sum, and note that the clock only starts once the facility is commercially operational, which on a refinery or petrochemical build can be years after the spend.

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Rejection Pitfalls 9

  • Eligible costs fall below the CAD$10 million minimum investment threshold
+8 more pitfalls
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Success Profile

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Evaluation Criteria

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Application Playbook

Step-by-step process, required documents, and expenses

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Application Steps

1 Confirm the project category with the program team Email [email protected] to confirm your project falls within one of the eight regulated project types and that the increase in processing capacity will satisfy the Minister. Confirm too that it is not a helium or lithium processing project, which now belongs to CMPII.

Required Documents 9

OGPII Application Form (from the program webpage)
Copy of the company's Certificate of Incorporation

Eligible Expenses 13

Ineligible Expenses 11

Claim timing

Deadline Notes

Ineligible Organizations

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Funding Stack Strategy

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Compatible Programs

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Clawback Risk

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How OGPII Compares

Side-by-side with similar programs

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Program Amount Difficulty Payment Deadline
Saskatchewan Oil and Gas Processing I... 15% of eligible project Hard Tax Credit Offset Continuous intake —...
Saskatchewan Petroleum Innovation Inc... up to $20,000,000 Hard Tax Credit Offset Continuous intake —...
Strategic Response Fund (formerly Str... Minimum $10 million contribution Hard Mixed (Advance + Reimb.) Ongoing — continuous...
CanExport SMEs Up to $50,000 Moderate Mixed (Advance + Reimb.) Applications accepted...
Ontario Innovation Tax Credit Up to 8% tax credit Moderate Tax Credit Offset Ongoing

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Frequently Asked Questions

Quick answers to the questions founders most often ask about OGPII

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Do I need to be a producer or pay Crown royalties?
No. Saskatchewan states the 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, gas and helium crown royalty and freehold production taxpayers" through the province's IRIS system.
Can a sole proprietor or partnership apply?
No. The application form requires a copy of the company's Certificate of Incorporation, and the program defines the applicant as "the corporate entity that submits an application to the OGPII program."
What is the smallest project that qualifies?
CAD$10 million in eligible costs, which earns CAD$1.5 million in credits. Unlike the sibling SCMII program there is no aggregation route below the threshold, though a phased project can reach it across phases as long as the phases are directly connected.
When does the money actually arrive?
Only after the facility is operating, and then over three years: 20% of total credits in the first calendar year of operations, 30% in the second and 50% in the third. Credits must first be verified through an Eligible Cost Submission Form filed in IRIS with third-party cost verification.
Are helium or lithium processing projects still eligible?
No. Saskatchewan moved helium and lithium eligibility to the Critical Minerals Processing Investment Incentive (CMPII) in 2024 and directs any new helium or lithium processing project to apply there instead.

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