Library / Implementation Guidelines for the Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order, 2024.

Implementation Guidelines for the Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order, 2024.

Page 11 of 29

Open the PDF at page 11

“a 
“Eh 
» 
? 
“A 
“ 
ss 
af, 
ee 
- 
& 
eanree fe 
moe y 
i 
id 
; 
eth 
6.0 Period of Carryover 
ij 
: 
ae 
f 
= 
mh, 
bets 
.s 
A Gas Tax Credit Surplus arising ina yeat can ba calried forwari for a Maximum 
period of three (3) years. 
Theréafter, any- -unutiliged!Gas-Tax:Credit Surplus (i.e. 
after three (3) years) shall lapse. 
, e, 
ae 
7.0 Computation of Gas Tax Credit and Gas Tax Allowiict e. a 
TABLE 1 
- DETERMINATION OF GAS TAX CREDIT AND GAS TAX ALLOWANCE 
Hydrocarbon Liquids Content per MMSCF 
S/N 
Description 
: 
0-30 MMSCF 
Above 30- 100 MMSCF 
Above 100 MMSCF 
; 
R 
rtt 
eo 
age 
1 
. 
Subjectto 
| Lowerof:(a) | 
US$1 per MSCF 
USS0.5 per MSCF 
evert 
to exisiting legistations 
as 
; 
. 
(PPTA, PIA, etc) 
1 
Gas Tax Credit *| maximum of 10 
Revert to 
exisiting 
legislations 
evi 
xisiti 
islation 
# 
dl 
years 
. 
(b) 30% of Fiscal Gas Price| 
30% of Fiscal Gas Price 
(PPT. A, mA ote 
G 
ne 
= 
7 
~ 
* 
fe 
“ 
Revert to exisiting legislations 
; 
Gak Tax 
og B 
Lower of: (a) 
USSO.5 per MSCF 
USSO.5 per MSCF 
_ (PPTA, PIA, etc) 
Allowance. 
., 
P 
» 
Revert 
isiting 
legislati 
9 
(b) 
130% of Fiscal Gas Price} 
30% of Fiscal Gas Price 
evert 
to exisiting legistations 
“eo 
(PPTA, PIA, etc) 
Note: MMSGF 
_ = Million Standard Cubic Feet 
MSCF 
= Thousand Standard ‘Cubic Feet 
8.0 
Illustrations:” 
Illustration A 
ABC 
Energies 
Limited operates 
a NAG 
field 
and commenced 
its 
first Gas 
production on 1% April 2024. The NAG field contains Hydrocarbon liquids (HCL) of 
; 
25 barrels per MMSCF of gas. 
Assuming the Company produced a 
total of 100,000,000 MSCF for-the year, with 
a fiscal gas price of $3.00 per MSCF, the Gas Tax Credit claimable for 2024 
accounting period is computed as follows: 
Suggested Solution to illustration A: 
a 
e 
ita 
we 
ABC Energies Limited: 
o 
_ 
Computation of Gas Tax Credit claimable in 2024 accounting period. 
‘- 
Volume of gas produced = 100,000,000 MSCF 
ae 
- 
Price per MSCF 
= US$3.00 
_ 
3