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.

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Suggested Solution to Illustration C: 
_: 
a 
ee 
we 
. 
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| a ‘ 
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wens 
* 
bea 
ABC Energies Limited: 
a 
Computation of Gas Tax Credit claimable in'2024 pccounting period. 
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., 
een 
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nae 
Volume of gas produced = 100,000,000 MSCF 
“~~ 
& 
«. 
«- 
ee 
Price per MSCF 
= US$3.00 
SY, 
Rs 
Gas Tax Credit (GTC) Rate: Not applicable 
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t 
EN Sy 
ot 
Company 
to revert to existing legislation 
Illustration D 
As in illustration (A) above, but the company is 
in its 11 year of production. 
The Gas Tax Allowance claimable is computed as follows: 
Suggested Solution to illustration D: 
ee 
ABC Energies Lithited: 
_ 
Computation of Gas Tax Credit claimable ‘in.20X4 accounting period. 
Volume of gas produced =" 00,000,000 MSCE 
PriceperMSCF 
. 
~..=US$3.00 
‘. 
Gas Tax Allowance (GTA) Rate: 
Lower of: 
(a) US$0.5 and; 
(b) 30% of US$3.00 = US$0.9 
Applicable GTA rate = US$0.5 
Gas Tax Allowance Claimable = Production per MSCF x Gas Tax Allowance Rate 
(100,000,000/1000) x US$0.5 
= 
100,000 X US$0.5 
= 
US$50,000 
Illustration E 
XYZ Energies 
Limited operates 
a NAG 
field 
and: commences 
its. first Gas 
production on 15* March 2035 (11 years after Order 40 came into.foree). The NAG 
field contains HCL of 28 barrels per MMSCE of gas.- Assuming the Company, 
produces a 
total of 200,000,000 MSCF in its first year-of production. and the-fiscal’-;- 
gas price is $5.00 per MSCF. 
. 
- 
a 
co 
Be 
Compute the Gas Tax Credit or Gas Tax Allowance ‘as may be applicable, for the 
relevant accounting period. 
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