MONGOLIA: NEW PETROLEUM LAW
Wolf Petroleum Ltd., Perth, reported the passing of a new petroleum law in Mongolia designed to boost foreign investment in the country.
Wolf has exploration licences in the country's Baruun Urt and Jinst blocks and is planning to apply for a production-sharing contract this year.
The new law, made effective on July 1, provides a number of incentives available to petroleum explorers, but will not apply to previously signed PSCs.
New exploration licences will be valid for 8 years, with the option of two 2-year extensions. The production period of 25 years will have two possible extensions of 5 years each.
Wolf says the PSCs themselves will carry the option to be signed and approved by the Mongolian government within 180 days, by company request. The PSCs must meet exploration contract commitments and outline production-sharing terms.
Royalty payments to the government will be at least 5%, but companies will be exempt from customs duty, value-added tax in the first 5 years, and income taxes from oil sales.
Also included in the PSC is a cost recovery program under which 100% of exploration, operation, development, and production costs can be recovered.
Companies also may apply for permission to build pipelines for transport of produced hydrocarbons.
Wolf says the government's objective has been to minimize bureaucracy and create competitive market conditions in relation to other petroleum provinces around the world.
|July, 16, 11:05:00|
|July, 16, 11:00:00|
|July, 16, 10:55:00|
|July, 16, 10:50:00|
|July, 16, 10:45:00|
|July, 16, 10:40:00|
AN - China National Offshore Oil Corp. (CNOOC) is willing to invest $3 billion in its existing oil and gas operation in Nigeria, the Nigerian National Petroleum Corporation (NNPC) said on Sunday following a meeting with the Chinese in Abuja.
REUTERS - Production at Libya’s giant Sharara oil field was expected to fall by at least 160,000 barrels per day (bpd) on Saturday after two staff were abducted in an attack by an unknown group, the National Oil Corporation (NOC) said.
IMF - Output grew by 3.8 percent in 2017, underpinned by a resilient non-hydrocarbon sector, with robust implementation of GCC-funded projects as well as strong activity in the financial, hospitality, and education sectors. The banking system remains stable with large capital buffers. Growth is projected to decelerate over the medium term.
IMF - Higher oil prices and short-term portfolio inflows have provided relief from external and fiscal pressures but the recovery remains challenging. Inflation declined to its lowest level in more than two years. Real GDP expanded by 2 percent in the first quarter of 2018 compared to the first quarter of last year. However, activity in the non-oil non-agricultural sector remains weak as lower purchasing power weighs on consumer demand and as credit risk continues to limit bank lending.