New incentives aimed at promoting the development of new oil resources, facilitate the exploitation of harder-to-reach oil fields and stimulate domestic explorations. These measures are expected to add more than RM50bn petroleum-generated revenue over the next 20 years and would involve a notional trade-off of about RM8bn in the form of revenue foregone from investment tax allowances, reduced tax and the export duty waiver for marginal fields.
Most oil and gas service providers will benefit from the development, either directly or indirectly, as it involves a wide-spectrum of services. As a word of caution, development of these fields are not without risk as any significant drop in crude oil prices will be detrimental to the financial standing of new players.
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