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Date Posted: 2009-08-18 13:08:39
What are the rules for "ring-fencing" Blocks, fields and step-out discoveries for tax and PSC purposes?
Answer
Date Answered: 2009-08-18 13:08:13
According to the Income Tax Law each EPSC will represent a separate Extractive Industry Qualified Taxpayer (QEIT), see Article 84 of the Income Tax Law. Furthermore, each well in the Contract Area is to be treated as a separate QEIT asset, and each year’s investment in such asset amortized separately with its own, separate amortization schedule. There is no ring-fence within the Contract Area apart from the above.