Tax Exemption For Oil Rigs
May 20th, 2009
Energy and Resources Minister Gerry Brownlee says the international oil exploration industry is showing increasing interest in NZ. To build on this, the 2009 Budget will make provision for a 5-year continuation of a tax exemption for offshore oil and gas exploration. The current exemption from tax on the profits of non-resident operators of offshore rigs and seismic vessels, introduced in 2004, was to expire on December 31 this year. Brownlee says the exemption will be extended to December 31, 2014.
The Minister says the number of non-resident offshore rigs operating in NZ has more than doubled over the past 5 years, and the numbers of offshore wells drilled has risen from 12 in 2000-05 to 62 since 2006. Offshore gas reserves have increased by 364PJ from 2005 to 2008, with notable reserve upgrades at Maui and Pohokura. Before the exemption non-resident offshore rig operators and seismic vessels had tended to stay in NZ for a period of less than 183 days, even if exploration had been desirable beyond the 183- day window.
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