22 C
Georgetown
Wednesday, November 25, 2020

Several imported equipment and supplies required for petroleum operations in Guyana are duty-free – GRA

Must Read

Orinduik block partners reviewing multiple light, sweet targets for 2021 drill plans

Eco (Atlantic) Oil and Gas Ltd announced Tuesday via its unaudited results for the six months ended September 30, 2020,...

Tullow to plug over 90% of expenditure in West Africa, will continue to evaluate Guyana acreage

UK-based Tullow Oil will be unveiling a new strategy and plan to generate c. $7 billion of operating cashflow...

South America’s new O&G deepwater players positioning for big opportunities

The governments of Guyana and Suriname, the new oil and gas deepwater hotspots in South America, are focusing on...
OilNOW
OilNow is an online-based Information and Resource Centre which serves to complement the work of all stakeholders in the oil and gas sector in Guyana.

The Guyana Revenue Authority said on Friday that based on the Petroleum Agreement between the Government and ExxonMobil affiliate Esso Exploration and Production Guyana Limited, contractors and sub-contractors are permitted to import a number of equipment and supplies duty-free for use in petroleum operations, as stated in Annex D of the petroleum agreement.

“The Contractor,  and the Sub-Contractors engaged in Petroleum Operations shall be permitted to import, free of duty, VAT or all or any other duties, taxes, levies or imposts, all equipment and supplies required for Petroleum Operations including but not limited to drillships, platforms, vessels, geophysical tools, communications equipment, explosives, radioactive sources, vehicles, oilfield supplies, lubricants, consumable items (other than foodstuffs or alcoholic beverages or fuel), as well as all items listed on Annex D,” said Godfrey Statia, GRA Commissioner-General.

In keeping with the said clause, the Guyana Revenue Authority advises that the supplies outlined in Annex D whether procured locally or overseas shall be sold to the Contractor (Exxon) in accordance with the said Article 21.1, i.e., free of duty, VAT or all or any other duties, taxes, levies or imposts.

GRA said consequently, suppliers of items to Exxon as listed in Annex D, on which taxes were levied and paid upon import, are advised that a credit shall be given for the said taxes, once proven to the satisfaction of the Commissioner General that such items were indeed sold to Exxon, and taxes were paid upon import.

GRA said it should be noted that foodstuffs, alcoholic beverages and fuel are subject to the appropriate tax, “and will be so taxed regardless of whether the supplier is local or otherwise.”

- Advertisement -

Latest News

Tullow to plug over 90% of expenditure in West Africa, will continue to evaluate Guyana acreage

UK-based Tullow Oil will be unveiling a new strategy and plan to generate c. $7 billion of operating cashflow...

Joint billion-dollar-plus Guyana-Suriname deepwater harbour on the cards

With massive volumes of hydrocarbons being found in the Guyana-Suriname basin in recent years, development of these resources will require significant shorebase support services...

Orinduik block partners reviewing multiple light, sweet targets for 2021 drill plans

Eco (Atlantic) Oil and Gas Ltd announced Tuesday via its unaudited results for the six months ended September 30, 2020, that multiple light, sweet, oil...

South America’s new O&G deepwater players positioning for big opportunities

The governments of Guyana and Suriname, the new oil and gas deepwater hotspots in South America, are focusing on strengthening bilateral relations and solidifying...

U.S hedge fund plugs US$30 million into junior firm with stake in Kaieteur block

(Reuters) - Activist hedge fund Elliott Management Corp has invested at least $30 million in Cataleya Energy, a small firm focused on oil exploration...

More Articles Like This