Unlimited carry forward of exploration expenditures is allowed, and of development costs up to a seven-year limit. Fiscal Treatment of Different Contracts Production Sharing Contracts Royalty and Income Tax are payable as above. The NOC participates in the JVC, with its percentage of participating interest set by negotiation. Royalty and Income Tax as detailed above. A limited local market supply obligation is in force.
Operations are exempt from most customs duties.
The right to retain proceeds of petroleum sales offshore and to operate foreign currency bank accounts is guaranteed. Minimum exploration work obligations are to be supported by a bank guarantee.