Adoption of new Hydrocarbon Code to promote oil sector investment
16 Jul 2019
The Hydrocarbon Code (Law No. 002/2019 of 16 July 2019) reduces the State's participation in the capital of oil operating companies from 20% to 10% and increases oil cost recovery cap to 70% and 75% (crude oil); 80 and 90% (natural gas). It also withdraws the corporate income tax (which previously amounted to 35%) and decreases the amount of the commensurate mining royalty. It exempts from tax capital gains resulting from sale of oil interests arising from hydrocarbon contracts. Further, it introduces a renegotiation option in the event of marginal discovery and increases the exclusive authorization periods. Finally, it includes best practices in terms of transparency, good governance and corporate social responsibility.
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Type:
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Entry and establishment (Ownership and control)
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Promotion and facilitation (Investment incentives)
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Industry:
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Primary (Mining and quarrying)
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Sources:
