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EOR programmes to be incentivised-I: 50% cess waiver proposed
Jan 11:
The government will soon come out with a new incentive scheme to promote Enhanced Oil Recovery (EOR) in Indian oil & gas fields which will provide yet another boost to investments in the sector.
8The incentive will be in the form of a waiver of 50% of the applicable cess on gross production of crude oil from designated wells of an approved EOR project for 10 years.
8In case of regimes where cess is not applicable, a notional cess shall be calculated, and the equivalent amount reduced from the government’s share of profit petroleum or revenue share, as applicable.
8Importantly, the waiver on cess would be applicable only if the average crude oil price of Indian Basket is below EOR reference price. Know more about what this price is.
8There will be an incentive equivalent to 10% of gas wellhead price on the gross production of gas from designated well of an approved EOR / unconventional gas production project for a period of 10 years. The incentive will however be capped at USD 0.6 per mmbtu for offshore fields and USD 0.3 per mmbtu for onshore fields.
8For offshore fields, the incentive will be in the form of waiver of applicable royalty on the gross production of gas from designated well of an approved EGR / unconventional gas production project.
8For onshore field the incentive shall be in the form of discount on the governments’ share of profit petroleum or revenue share. For onshore fields where no profit share or revenue share applicable, government will make a budgetary allocation for equivalent incentive.
Click on Reports for more
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8The incentive will be in the form of a waiver of 50% of the applicable cess on gross production of crude oil from designated wells of an approved EOR project for 10 years.
8In case of regimes where cess is not applicable, a notional cess shall be calculated, and the equivalent amount reduced from the government’s share of profit petroleum or revenue share, as applicable.
8Importantly, the waiver on cess would be applicable only if the average crude oil price of Indian Basket is below EOR reference price. Know more about what this price is.
8There will be an incentive equivalent to 10% of gas wellhead price on the gross production of gas from designated well of an approved EOR / unconventional gas production project for a period of 10 years. The incentive will however be capped at USD 0.6 per mmbtu for offshore fields and USD 0.3 per mmbtu for onshore fields.
8For offshore fields, the incentive will be in the form of waiver of applicable royalty on the gross production of gas from designated well of an approved EGR / unconventional gas production project.
8For onshore field the incentive shall be in the form of discount on the governments’ share of profit petroleum or revenue share. For onshore fields where no profit share or revenue share applicable, government will make a budgetary allocation for equivalent incentive.
Click on Reports for more
