Government of A holiday in greece to produce New Licensing Round and Announces Proposal for Significant Tax Cut to inspire Hydrocarbon Investment
At the begining of This summer, the Minister of one’s Atmosphere & Global Warming from the Hellenic Republic and also the Greek Ambassador working in london located the state pre-launch event for any new offshore gas and oil putting in a bid round in the Hellenic Center working in london. The brand new round will offer you twenty blocks located towards the south of The island as well as in the Ionian Ocean, covering a combined section of over 200,000 square kilometers.
The federal government of A holiday in greece seeks landmark contracts for obtaining the very first new gas and oil exploration leases in the united states for pretty much two decades. An investment initiated by individuals contracts could have a worth of around €700 million, with respect to the success from the resulting exploration campaigns. The federal government hopes this latest licensing round announced at July’s pre-launch event working in london will encourage further purchase of Greece’s hydrocarbons sector.
This Year, the federal government of A holiday in greece initiated steps to inspire revitalization of their E&P sector by applying Law 4001/2011, the goal of that was to enhance the present legal framework for E&P set lower legally 2289/1995. The brand new law deliver to: (i) the adoption of best worldwide practices and encounters (ii) growth and development of a transparent, competitive and investment friendly legal framework and (iii) the establishment of “Hellenic Hydrocarbons Sources Management S.A.” (HHRM), empowered because the competent authority to workout the legal rights from the Hellenic Republic to take advantage of hydrocarbon sources within A holiday in greece as well as on its continental shelf.
The gas and oil regime in A holiday in greece is really a licence-based structure, with licensees getting into lease contracts using the recently created HHRM. The lease, in line with the printed model form, provides licensees (“lessees”) with exploration legal rights within the contract area over an 8-year period, which period might be susceptible to extension. The exploration period is split into three phases, because both versions is related to some specific work program. In the finish of every exploration phase, the lessee must relinquish between 20% and 50% from the original contract area. Upon a promise of commerciality, the lease advances in to the exploitation phase. From that date, the lessee has exploitation legal rights on the 25-year period, with the potential of two extension periods of 5 years each. The nation operates a typical tax and royalty based fiscal regime, including royalties payable on “super-profits” with an R-Factor mechanism.
Inside a further proceed to encourage curiosity about the brand new licensing round and purchase of the Greek oil industry, the federal government has announced intends to lessen the tax rate for businesses participating in gas and oil exploration in the united states from 40% to 25%. A 20% tax would apply by having an additional 5% regional tax levied. Up to now, no date continues to be looking for implementation from the tax-cut. The Federal Government has had this task to lessen the tax burden on gas and oil companies and incentivize these to take part in exploitation from the country’s hydrocarbon sources. The aim would be to increase purchase of its gas and oil industry having a view to lowering the nation’s reliance upon imported fuel.
A holiday in greece will formally invite investors to submit bids for that new round in September by posting a phone call for tenders within the Eu gazette. Bids are anticipated inside the following six several weeks. Your customers can submit single or multiple bids for that offered blocks and can also apply individually or included in some pot venture or consortium in order to encourage interest from smaller sized investors, along with the major IOCs.
The Greek government is wishing the new tax measures, a transparent bid process and also the political and legal stability of A holiday in greece, coupled with recent breakthroughs in Italia and Albania that A holiday in greece shares a geological history, will give you a beautiful profile for purchase of its gas and oil sector.
+44 20 7551 7576
View Profile »