Tax Breaks Offshore Nigeria - Sao Tome
|Thursday, October 02, 2003
Environmental Remediation Holding Corporation ("ERHC"), reports that The Joint Development Authority (JDA) of the Nigeria-DRSTP Joint Development Zone (JDZ) has announced a significant improvement to the fiscal terms applicable to the licensing round.
The JDA announced an introduction of an Investment Tax Allowance (ITA) as an integral part of the fiscal terms. The ITA - 50% of qualifying capital costs – is an additional allowance for Tax and will enhance the overall competitiveness of the JDZ fiscal regime.
The JDA also announced that a variety of other issues have been reviewed and a number of clarifications have been made, including; treatment of exploration costs, treatment of Royalty Oil, treatment of abandonment costs and OML extension.
Mr. Chude Mba, president of ERHC said; "ERHC is delighted that the JDA has seen fit to significantly improve the potential economic value of the entire JDZ. The changes made by the JDA substantially increase the potential success of the licensing round and thus the overall benefits to both nations. I believe the improvements should enhance the rate-of-return of successful exploration efforts for working interest holders and will most likely generate a great deal more excitement in the area."