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Probability of success; Probability of geological success; Chance of success

Probability of success is established by considering both geological and commercial factors. The probability of geological success includes the four main geological components needed to have a petroleum system for commercial production and include: (1) presence of source rock available which is capable to generate hydrocarbons; (2) presence of adequate quality reservoir rock and better …

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Ring-fence; Ring-fencing; Ring fence; Ring fencing

In countries where there is significant production by investors the state can decide whether to allow the investor to offset the cost of incremental exploration and development work against the taxable income being generated by the producing fields. Thus it is very important to establish the entity that is liable to tax and/or other fiscal …

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Re-powering; Repowering; Full re-powering

As power plants age, the efficiency of the equipment declines and/or the equipment becomes technologically obsolete, even with regular maintenance. Rather than replace production equipment, some utilities have chosen to replace it with new technology. This process is called “repowering” and offers the opportunity to increase the efficiency of the process through the installation of …

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Accepted Tax Benefits in Oil & Gas Fiscal Regimes

1. Accelerated capital cost allowances 2. Depletion Allowances 3. Interest Deduction Rules 4. Loss Carry Forward 5. Tax Holidays In Israel there is a special tax regime for oil and gas production, which includes tax benefits for oil and gas exploration expenses and tax benefits on revenues. The revenues stem from the Tax Authority Regulations …

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Interest deduction rules

Common manner of funding large projects or for small oil and gas companies. Usually it is possible to deduct the interest on the loan from the taxed income as an approved expense. Even interest within the company can be deducted from the taxable income, when they are calculated in a fair manner.