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Article 10 Amendments of CTA 2010

Original text. Later amendments are not shown.

After section 356 insert—

“356A

“Total field allowance for an additionally-developed oil field”

(1)

For the purposes of this Chapter, the total field allowance for an additionally-developed oil field in relation to which a qualifying project has been authorised as mentioned in section 349A(1)(a) is—

(a)

if the field is not a cross-boundary field, the amount determined in accordance with subsection (2), and

(b)

if the field is a cross-boundary field, the amount determined in accordance with subsection (3).

This is subject to subsections (4) and (7).

(2)

In a case where the field is not a cross-boundary field, the total field allowance for the field is—

AR×50× CPT−£60 20

where—

  • AR is the amount of additional reserves of oil (in tonnes) which the field has as a result of the project, and

  • CPT is—

    1. (a)

      where the cost per tonne of the project is £80 or more, £80, and

    2. (b)

      in any other case (where the cost per tonne of the project is less than £80 but more than £60), the cost per tonne of the project (expressed in pounds).

(3)

In a case where the field is a cross-boundary field, the total field allowance for the field is—

A×UKR

where—

  • A is the amount that would be determined in accordance with subsection (2) as the total field allowance for the field if it were not a cross-boundary field, and

  • UKR is the fraction of the reserves of oil which the field has lying within the UK marine area.

(4)

The total field allowance for an additionally-developed oil field may not exceed the relevant maximum (see subsection (5)).

(5)

The relevant maximum is—

(a)

in the case of a licensee in the field who is liable to PRT, £500,000,000, and

(b)

in any other case, £250,000,000.

(6)

For the purposes of subsection (5) a licensee in an oil field in relation to which a qualifying project has been authorised as mentioned in section 349A(1)(a) is “liable to PRT” if—

(a)

it is reasonably expected, as at the authorisation day, that the licensee will be chargeable with petroleum revenue tax for a chargeable period in respect of its share of the equity in the field, and

(b)

the chargeable period is one in which oil is reasonably expected, as at the authorisation day, to be won from the field as a result of the project.

(7)

In a case where—

(a)

the field is not the only additionally-developed oil field that has additional reserves of oil as a result of the project, and

(b)

the sum of the amounts determined in accordance with subsection (2) or (3) (as the case may be) in relation to each of those oil fields is greater than the relevant maximum (see subsection (5)),

the total field allowance for the field is the relevant percentage of the amount determined in accordance with subsection (2) or (3) (as the case may be) in relation to the field.

(8)

The relevant percentage is—

RM T ×100

where—

  • RM is the relevant maximum, and

  • T is the sum of the amounts determined in accordance with subsection (2) or (3) (as the case may be) in relation to each of the additionally-developed oil fields that has additional reserves of oil as a result of the project.

(9)

For the purposes of this section—

(a)

1,100 cubic metres of gas at a temperature of 15 degrees celsius and pressure of one atmosphere is to be counted as equivalent to one tonne,

(b)

“cost per tonne”, in relation to a project, has the same meaning as in article 2 of the Additionally-developed Oil Fields Order 2013,

(c)

“cross-boundary field” has the meaning given by section 10(9) of the Petroleum Act 1998,

(d)

“qualifying project” means a project meeting the conditions in subsection (1)(aa) and (b) of section 349A, and

(e)

“UK marine area” has the same meaning as in the Marine and Coastal Access Act 2009 (see section 42 of that Act).”