an overview of the turkish mine and petroleum regulations & … · 2019-06-17 · regulations....
TRANSCRIPT
An Overview of the Turkish Mine and
Petroleum Regulations & Incentives on
Coal Mine Methane Production
Emre Özgür, Ph.D.
Energy Expert (Petroleum and Natural Gas Engineer)
General Directorate of Mining and Petroleum Affairs
Ministry of Energy and Natural Resources
Workshop on Best Practices in Methane Capture and Utilization
10.06.2019
Ankara, Turkey
Presentation Plan
Regulations
Petroleum License Map
Royalty
Incentives
Regulations
Offshore-2
Following article has been added to Turkish Petroleum Law No. 6491 with the Law No. 6719 adopted on the date of 04.06.2016 regarding to the Bringing the Coal Mine Methane Gas in the Economy.
(8) (Annex: 4/6/2016-6719/Article 27) «Methane gas in the mines which are described as
Group IV in the paragraph (b) of Article 2 of the Mining Law No. 3213 dated 04.06.1985
and which should be operated underground, are produced on the surface or within the
quarry. The operation license is granted to the mine owner within the scope of this Law,
provided that the methane gas is produced within the borders of the mine operation
license. However, the condition that the amount of methane gas within the mines
mentioned should be at least five cubic meters per ton is sought in order to issue an
operation license…..»
If methane content is ≥ 5 m3 / ton for coal seams, operating license can be
given based on the Turkish Petroleum Law.
The borders and sizes of the exploration licenses are designed according to international geographical grid system.
Turkey’s territory is divided into 2 districts as onshore and offshore. Offshore district is divided into 2 parts as “Within territorial waters” and “Outside of territorial waters (Exclusive Economic Zone)”.
Petroleum License Application Map
Offshore-2Offshore
Offshore
Onshore
Royalty
1/8 (12,5%) royalty is collected for natural gas production.
The royalty is calculated based on wholesale price for natural gas.
Following article has been added to Turkish Petroleum Law No. 6491 with the Law No.6719 adopted on the date of 04.06.2016 regarding to the Bringing the Coal MineMethane Gas in the Economy.
(8) (Annex: 4/6/2016-6719/Article 27) «…The state’s right to be taken from the methane gas to be produced
is taken at the rate stated in the Article 9 (12.5%). The President is authorized to increase this rate up to four
times or to reduce it by half upon proposal of the Ministry.»
Incentives
Materials Tax & Dues Exploration Production
Casing Exempted Exempt from VAT and SCT Exempt from SCT
Drilling Rig and Equipment Exempted Exempt from VAT and SCT Exempt from SCT
Seismic Equipment Exempted Exempt from VAT and SCT Exempt from SCT
Drilling Bits Exempted Exempt from VAT and SCT Exempt from SCT
Vehicles Exempted Exempt from VAT and SCT Exempt from SCT
Chemicals Exempted Exempt from VAT and SCT Exempt from SCT
Contracts ---- Exempt from Stamp Tax Exempt from Stamp Tax
Fuel Exempted Exempt from VAT and SCT Exempt from SCT
Investment Guarantees ---- Available ----
Expropriation ---- Available Available
Administrative Goods and Service
Purchases
----Available No
VAT: Value Added TaxSCT: Special Consumption Tax
Capital Investment and Profit Transfers
Foreign investors have the right to transfer their capitalinvestments after starting to production on conditionthat paying royalty.
Until the investment capital registered by the Ministry isfully transferred, revenue is exempted from the alltaxes.
After the payment of taxes, duties, fees, rentals androyalties, a petroleum right holder may transfer theirprofit abroad.
Incentives
Incentives
Employment of foreign personnel will be exempted from the Law no 4817 for 6 monthor shorter periods. The permission is given by the Ministry of Energy and NaturalResources. After 6 months, they have to apply Ministry of Labor, Social Services andFamily for the working permission.
Foreign Staff
Temporary working permit
Incentives
No storage obligation for thewholesale license to the naturalgas producers.
An Overview of the Turkish Mine and
Petroleum Regulations & Incentives on
Coal Mine Methane Production
Emre Özgür, Ph.D.
Energy Expert (Petroleum and Natural Gas Engineer)
General Directorate of Mining and Petroleum Affairs
Ministry of Energy and Natural Resources
www.linkedin.com/in/dremreozgur
Workshop on Best Practices in Methane Capture and Utilization
10.06.2019
Ankara, Turkey
Thank you