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On behalf of the Nation; We, Habib Bourguiba, President of the Republic of Tunisia; The Chamber of Deputies having adopted; Promulgate the Law the terms of which are the following:
It applies to prospecting authorizations, prospecting permits, exploration permits and exploitation concessions for mineral substances of the second group which are granted after the date on which it is promulgated.
It is mandatory for the Consultative Committee on Hydrocarbons to be consulted in all the instances provided for under the Decree on Mines dated January 1, 1953, as well as in all instances provided hereunder.
The Minister of Energy and Mines may, if he sees fit, request the Consultative Committee's opinion on any other matter relating to hydrocarbons.
The membership and by-laws of the Consultative Committee on Hydrocarbons will be defined by decree.
Prospecting authorizations are only issued for areas which are little known and require basic prospecting works.
Beneficiaries of prospecting authorizations may carry out any preliminary prospecting surveys and work except seismic surveys or profiling. The licensing Authority may appoint a representative to take part in this work. Upon the expiry of the authorization, the beneficiary must give the Licensing Authority a copy of all surveys and work undertaken.
The Holder of a prospecting permit has the priority right to the conversion of a prospecting permit into an exploration permit in accordance with conditions agreed upon in advance by the Licensing Authority and the beneficiary.
The Holder must apply to the Licensing Authority for the conversion of a prospecting permit into an exploration permit at the latest two months before the expiry of the prospecting permit.
The beneficiary of a prospecting permit must make commitments with regard to expenditures and undertake to carry out geological and geophysical work. Upon the expiry of the term of the prospecting permit, he must give the Licensing Authority a copy of all the surveys and work undertaken.
Exploration permits are granted for an initial period having a maximum duration of 5 years and may be renewed in accordance with the conditions stipulated under the Special Convention.
Subject to the results of a public enquiry and on the condition that the Special Convention is approved, once the Order establishing the prospecting permit has been published, the Holder of the exploration permit is admitted to the benefits of the Decree of December 13, 1948 establishing special provisions to facilitate the exploration and exploitation of mineral substances of the second group, the Decree on Mines dated January lst.,1953, Law n°ree; 58-36 dated March 15, 1958 amending the royalty on hydrocarbons, and the Decree-Law hereunder.
The Minister of Energy and Mines may authorize the Holder to modify his work program. However, the expenditure commitments remain unchanged.
a) In the event of a potentially exploitable discovery the Holder is required to carry out an evaluation program lasting at the most three(3) years for discoveries of liquid hydrocarbons and four (4) years for discoveries of gaseous hydrocarbons.The expenditure relating to evaluation work carried out before applying for a concession is entered into the accounts as a minimum expenditure obligation for the period durlng which the work in question was undertaken.
b) When the evaluation work has been completed, if the Holder considers the discovery to be exploltable he is entitled to be granted an exploitation concession covering the deposit which has been discovered, the latter being marked off in compliance with the special conventions.
If, however, the Holder establishes without any additlonal evaluation work that the discovery is economically exploitable, the Licensing Authority may grant him an nioitation concession covering the deposit whirh hrl~ h~n ~
c) Applications for a concession must be accompanied by a development notification and a development plan as provided for under Article 10 hereunder; the development notification date is the date on which the application for a concession is filed. In the event that, other than in cases of unforeseen circumstances and contrary to the implementation schedule provided for under Article 10 hereunder, development work does not commence within two years as from the date of granting the concession, the Licensing Authority may cancel the latter and dispose of it sees fit.
d) Whatever the circumstances, if no decision has been taken to develop a commercially exploitable discovery within six (6) years as from the discovery date for liquid hydrocarbon discoveries and eight (8) years for gaseous hydrocarbon discoveries, the Licensing Authority may require the Holder to make the discovery in question over to it without any compensation.
e) Notwithstanding the provisions of the paragraphs (c) and (d) of the present Article, the Licensing Authority may, upon the Holder's request, extend the time limits foreseen in the above-mentioned paragraph if former judges that the economic conditions do not allow for the development of a given concession.
- a geological and geophysical survey of the deposit giving in particular an estimate of the reserves present and the reserves shown to be recoverable; - a study of the reservoir showing the planned production methods and backing up the forecast production profile; - a comprehensive study of the plan which is required for the production, processing, transport and storage of hydrocarbons; - an economic study with a detailed estimate of development and exploitation costs, establishing the discovery's commercial nature; - a study of personnel requirements with a plan for the recruitment and training of local staff; - a study on the valorization of petroleum by-products, particulary dissolved or associated gas, liquefied petroleum gas and condensates; - a schedule of the implementation of development work.
The Holder is required to communicate to the Licensing Authority without delay any contracts for the supply of services, work or materials which are for an amount of over 100, 000 Dinars. The Licensing Authority may ask the Holder for any supporting documents with regard to expenditures including that incurred by the parent company and/or affiliate companies in the same group as the latter.
The Minister of Energy and Mines sets by Order the technical regulations governing the exploration and production of hydrocarbons, particularly with regard to the conservation of natural resources, the protection of the environment and the security of staff and plant.
Upon the request of the Licensing Authority, the Holder is required to have the production plant certified by an independant, internationally recognized bureau which has been approved by the Licensing Authority in compliance with current regulations and the sound practices of the Petroleum industry.
The participation option is forfeited by Entreprise Tunisienne d'Activites Petrolieres six (6) months at the latest after the date of notification of development or any late date agreed upon in the contract or agreement mentioned above
As soon as it gives notice of its Participation in a concession, Entreprise Tunisienne d'Activites Petrolieres bears the cost of its quota of development and exploitation expenses up to its rate of participation in the concession in question.
a) Exploration and evaluation expenditures undertaken by the Holder in the permit area slnce the date on which the permlt was establlshed if It Is the flrst concesslon, and slnce the date of flling the appllcatlon for the previous concession If it is not the first concesslon, and b) Development expendltures incurred by the Holder In relatlon to the deposit located wlthin the concesslon. from the date of flling the appllcation for a concession through to the date on whlch Entreprise Tunlsienne d'Actlvltes Petrolleres glves notice of its particlpation.
Entreprlse Tunisienne d'Activltes Petrolieres relmburses its quota of the above-mentioned expenditures by deducting a percentage of its productlon quota, In compllance with the terms speclfled in the Contract of Assoclation or Agreement mentioned under Article 13.
a) Set duty and registratlon duty for permits and concesslons, in compllance with the provisions of the Decree on Mlnes dated January 1,1953; b) A Royalty in proportion with the value or quantities of hydrocarbons, in complTances with the provisions of the Special Conventlons; c) A tax on the profits deriving from hydrocarbons, such proflts being determined either in compllance with the provisions of the Special Conventions, or in accordance with the optional and statutory regulatlons provided under Article 20 and 31 of the Decree-Law hereunder; d) Payments to the State, public and prlvate organlzations, agencies and institutions and to concessionaries of public services, In remuneratlon for the direct or indirect utlllzation by the Holder of public roads and other networks or of public services in compllance with fhe terms and condltlons of utlllzatlon defined under the special conventlons; e) The duties, tax and levies paid by the suppliers of services, materials or equipment which are normally included in the purchase prlce, excludlng, however, Income tax; f) Tax on customs procedures (T.F.D.) due on imports and exports; g) The registration of supply, works and service contracts for exploration, evaluation, development, production, transport, storage and marketing, in accordance wlth the set duty; h) Notwithstanding the above provisions of the Article hereto, the Holder is, for exploration work, compelled to pay the tax on customs procedures (T.F.D.) due on importation and exportation of all equipment and materials allocated to these works as per the tariff by weight.Notwithstanding the provisions foreseen in the Article 16 bis of the Code governing the Income tax on Profits of the companies, the Holder's mother company is exempted from the tax on the royalty for studies, and technical assistance carried out directly by the latter on behalf of its subsidliary company in Tunisia. In return for the payment stipulated under the artlcle hereto, the Tunisian Government exempts the Holder from all dlrect or Indirect levles, taxes, duties and tariffs already Introduced by the Tunlslan Government and/or all other public institutions or organizations with the exception of those listed under the Article hereto. It is understood that dlvidends distributed to the Holder's shareholders are exempt from tax on income from stocks and shares (I.R.V.M.)
a) The duties, levies, taxes and tariffs mentioned under paragraphs (a), (b), (d), (e), (f) and (g) of article 16 of the said Decree-Law are taken to be deductible costs.
b) The exploration and evaluation expenditures incurred in a permit may be amortized, at the Holder's optlon, over all the concessions derlving from the same permit.
Should productlon be stopped In a concesslon, the development costs relatlng to thls concesslon which have stlll to be amortized may be amortized over other concessions in the same permit.
c) Interest on loans for development investment Is only consldered to be a deductible cost for amount not in excess of 70% of such loans. The conditlons of loans contracted by the Holder as well as any credlts whlch might be granted to the latter must be approved by the Llcensing Authorlty.
d) The Holder is entltled to bulld up a reinvestment reserve exclusively intended to finance subscriptlon for equity in new companies in the agricultural and/or industrial sectors other than that of hydrocarbon exploration and production. This reserve may be deducted from taxable profit for the fiscal year in question up to the limit of 20% of such profit.
The reserve built up during a given fiscal year which has not been reinvested in full or part within five years from the date on which it was established must be reincorporated into the taxable earnings of the fifth fiscal year following the fiscal year in which it was established. The corresponding tax will bear a rate interest equal to that applied by the Central Bank of Tunisia for short term overdrafts on the date of payment, increased by two (2) points
This interest will be calculated for the period running between the date on which the tax should normally have been paid and the date on which it is actually paid,
e) The prices to be taken into consideration for the calculation of taxable profit are actual market prices as defined under the Special Conventions.
f) The tax is paid quarterly within three (3) months of the end of a calendar quarter, on the basis of provisional balance sheets. Final settlement is within six months at the latest after the end of the fiscal year in question.
However, if the Holder establishes that one or more hydrocarbon discoveries located on one or more permits are not commercially exploitable on an individual basis, the Licensing Authority may make an exception and authorize them to be grouped together in order to enable them to be exploited.
The Licensing Authority may, for the same reasons, authorize hydrocarbon discoveries located on permits belonging to different Holders to be grouped together.
The price for such sales is the FOB price obtained by the Holder for other export sales, reduced by 10%.
If the Licensing Authority uses its priority purchasing right, the Holder is required to make the corresponding deliveries in accordance with the conditions specified in the notification. Deliveries made in this way are considered to be local sales, particularly with regard to foreign exchange procedures, and are paid in Tunisian Dinars.
The Holder benefits from following provisions:
a) For hydrocarbn exports, the Holder transfers back to Tunisia each month funds kept abroad of an amount equal to that due to the Government of Tunisia and to that of local running costs in the event that the Holder does not have sufficient funds available in Tunisia.
b) Adjustments are made as a function of positions or balances showing the Holder's cash available in Dinars in Tunisia, the credit balance being transferred in accordance with the provisions of the Special Conventions. These adjustments are made every four months for concessions which are mainly for the exploitation of gas for the requirements of the domestic market, and every six months for all other concessions.
c) The Holder is authorized to use procedures of the sale of gas from concession developed for requirements of the domestic market in order to settle development and exploitation costs for this concession in compliance with exchange procedures applying to approved resident exporters within the framework of Law n°ree; 72-38 dated 27 April 1972 setting up special regulations for export industries.
The special fiscal regulations cover amortization, the proportional royalty and the tax on profit which are established in accordance with the ratio (R) of accrued net earnings to total accrued expenditures for the concession in question.
The term "accrued net earningsN means the sum of the gross income of all fiscal years, reduced by the amount of tax and levies due or paid for all fiscal years previous to the year in question for the concession in question.
The term "accrued total expendituresn means the sum of all exploration and evaluation costs incurred in the permit and all development and exploitation costs for the concessions in question, except for taxes and levies due or paid by the Holder for the exploitation thereof. It is pointed out that exploration expenditures incurred in the permit and taken into consideration in determining the ratio (R) for a given concession is no longer to be considered when determining the aforestated ratio for other concessions.
It is understood that amortization relating to the concession as well as all types of resorption are not taken into consideration when calculating the sum of the above mentioned costs.
a) The Holder has the option of amortizing all his capitalized investments at a rate of up to 30% year.
b) The proportional royalty due varies with the R ratio 2% for R less than or equal to 0,5 5% for R exceeding 0,5 and less than or equal to 0,8 7% for R exceeding 0,8 and less than or equal to 1,1 10% for R exceeding 1,1 and less than or equal to 1,5 12% for R exceeding 1,5 and less than or equal to 2,0 14% for R exceeding 2,0 and less than or equal to 2,5 15% for R exceeding 2,5 c) The rate of Income Tax on Proflts due varies wlth the R Ratlo: 50% for R less than or equal to 1,5 55% for R exceeding 1,5 and less than or equal to 2,0 60% for R exceeding 2,0 and less than or equal to 2,5 65% for R exceeding 2,5 and less than or equal to 3,0 70% for R exceeding 3,0 and less than or equal to 3,5 75% for R exceeding 3,5
By Commercial Gas is meant a natural gas from which liquids and possibly gases which are not hydrocarbons have been extracted with a vlew to making them suitable for consumption in accordance with specifications agreed upon between the vendor and the purchaser of commercial gas and in compliance with statutory regulations.
1) Use by the Holder for his own requirements on extraction sites or in processing plants for productlon operations and/or reinJectlon in the Holder's flelds.
2) To satisfy the needs of the Tunisian domestlc market.
3) Export elther as is or after belng transformed into by-products.
The Holder may undertake an isolated export proJect for a gas fleld, group all his fields producing gas for export in an integrated proJect, or form a group with other Holders to undertake a jolnt gas export proJect.
Provlded that accounts are kept for gas, the Licensing Authority undertakes to give the Holder access to any gas transport or processing facillties belonging to the Government of Tunisia or to a Tunislan State-Owned Compagny against reasonable remuneration when such facilities have available capaclty or when an extension of their capacity may be carried out by minor modiflcations or reinforcements.
When granting authorizations for the construction, exploitation or development of plant for the transport or processlng of gas, the Licensing Authority will make every endeavour to favor both the undertaking of Joint plant and access for the Holder on reasonable terms, for the purposes of exporting his gas to plant undertaken before the latter's concession was brought into production.
A Holder who disposes of existing plant or solicits buildlng of new plant may not refuse one or more Holders nominated by the Licensing Authority for access to his plant. In the latter event, the Holder may opt either to make the newcomers partners to the project, participating in the investment and exploitation expenditure, or for remuneration for his services to cover his costs and a reasonable margln set, if necessary by arbitration of the Licensing Authorlty.
All natural gas produced a national field is guaranteed an outlet on the local market insofar as domestic demand allows.
Any increase in domestic demand that may be economically satisfied from natural gas is reserved by order of priority, for following sources
- The production of Holders who are already established and committed to the Lincensing Authorlty by a program and reciprocal productlon/outlet commitments.
- The production of new flelds. In order to determine the priority of access to the local market, the date of firm notification of the evaluation of the discovery provided for under Article 25 hereto will be taken within the bounds of the quantities thus notified.
In the event of simultaneous discoveries, the outlets available will be shared between the applicants in proportion with the recoverable reserves as notified the Licensing Authority, unless one of the two applicants withdraws in favor of the other. A Holder who withdraws will take priority over any new applicants.
Within six months of such notification, the Authorities inform the Holder of the quantities for which they can guarantee an outlet in accordance with the conditions defined below. A commitment thus taken by the Licensing Authority is only valid if the Holder undertakes the evaluation program mentioned under Article 28 hereto within six months and if he notifies his decision to develop within four years as from the notification date of the discovery.
In return, Entreprise Tunisienne d'Activites Petrolieres will pay the Holder each year 20% of the exploitation profit calculated, for takings, on the basis of the development and exploitation expenditure incurred by Entreprise Tunisienne d'Activites Petrolieres in the field.
Entreprise Tunisienne d'Activites Petrolieres is released from any commitments vis-a-vis of the Holder once its reimbursements have reached the equivalent of one and a half times the amount of expenditure undertaken by the Holder resulting in the discovery of gas.
The following are considered to be expenditures directly related to the discovery:
1) Evaluation costs following the discovery of the productive structure.
2) Drill hole(s) which have brought the structure to light as well as drill hole(s) intended to delineate the structure in question, even if they were undertaken after encountering the first shows.
3) A quota of the seismic, geophysical or other exploration costs incurred in the permit. This quota is proportionate to the number of holes drilled in relation to the structure in question, related to all the holes drilled in the permit on the date on which it was decided to transfer the discovery to Entreprise Tunisienne d'Activites Petrolieres.
The Holder has the option of renouncing the lump-sum reimbursement defined above and of opting to keep all the expenditure in his acounts in order to amortize it in later discoveries.
The Licensing Authority may request the Holder to provide certain equipment in order to be able to recover gas, the corresponding investment being charged to the Licensing Authority.
If the Holder has provided in the development plan mentioned under Article 10 hereto, for the economic exploitation of associated gas and dissolved gas and if, other than due to force majeure, contrary to the implementation schedule provided for under Article 10 hereto, the corresponding work has not been commenced within two years as from the date planned in the implementation shedule, the Licensing Authority may request the Holder to surrender this gas to it free of charge. Any possible alterations made to the Holder's plant are charged to the Licensing Authority.
The Licensing Authority may have the proven reserves as well as the production profile certified by a bureau of independant consultants of its choice and at its expense; in this case, the Holder is required to supply the consultants bureau selected by the Licensing Authority with all the requisite information and basic documentation.
For concessions covering mainly the exploitation of gas which is not associated with crude petroleum, the fiscal regulations to be applied comply with the provisions of the Special Conventions except for rate of the proportional royalty on gas which is due in compliance with the provisions of Article 30 hereto. However, the proportional royalty on liquid products extracted from the concession is due in compliance with the provisions stipulated under the Special conventions.
2% for R than or equal to 0,5
4% for R exceeding 0,5 and less than or equal to 0,8
6% for R exceeding 0,8 and less than or equal to 1,1
8% for R exceeding 1,1 and less than or equal to 1,5
9% for R exceedlng 1,5 and less than or equal to 2.0
10% for R exceedlng 2,0 and less than or equal to 2,5
11 % for R exceeding 2,5 and less than or equal to 3,0
13% for R exceeding 3,0 and less than or equal to 3,5
15% for R exceeding 3.5
50% when R is less than or equal to 2.5
55% when R is exceedlng 2.5 and less than or equal to 3.0
60% when R is exceeding 3,0 and less than or equal to 3.5
65% when R is exceeding 3
5
For the calculation of the Income Tax on Proflts, the Holder has the optlon of amortizing his capltallzed investments at a rate up to 30% per year.
The contract for the supply of gas must deflne the obllgations of the contracting parties with regard to the delivery and removal of commercial gas, these obligations being agreed upon on an equitable and reciprocal basis between the vendor and the purchaser.
The contract must in particular specify the period of the reciprocal commitment, the quantities, quality standards and delivery point for the commercial gas.
If the contract is concluded on a long term basis and the development of the discovery intended malnly for the domestlc market, the above mentioned contract may, upon the Holder's request, comprise a clause obllging the purchaser to pay part of the price should he fail to remove the quantities specified under the contract.
In the latter event, the contract must stlpulate a reciprocal commltment to deliver the gas or an undertaking to compensate the purchaser In the event of fallure to dellver the amounts under contract. This obligation to pay compensation is none the less restricted to three consecutive years. If the failure to deliver persists beyond three years. the purchaser is released from the obligatlon to pay for gas which is not delivered.
The payment of gas deliveries to the local market will be done In Tunisian Dinars and in foreign currencies in proportions whlch wlll be fixed In the purchase and sale contracts concluded between the Holder and the Organization In charge of the gas distribution withln Tunisia.
Thus the guarantee of price Is valid for the utlllzation of gas as a fuel. For its utilization as a raw material, the price is defined by mutual agreement between the Licensing Authority and the Holder in such a way as to guarantee the latter fair remuneration whilst respecting the specific economic constraints of the industry utllizing it. The Holder may request the Licensing Authority to set thls prlce prior to the evaluation and development of the discovery.
Gasoline is considered to be a liquid hydrocarbon and may be blended with crude petroleum, unless there is a prohibition by the Licenslng Authorlty.
Liquefied Petroleum Gas (LPG) will be considered as being a liquid hydrocarbon and may be sold on the local market. The transfer price of LPG at the nearest Tunisian port is equal to the international price in the Mediterranean area for FOB export. In the event of upstream deliveries, the transfer price is adjusted accordingly.
b) Entreprise Tunisienne d'Activites Petrolieres, as Holder, concludes a Production Sharing Contract with a contractor who proves that he possesses the necessary financial resources and technical experience. This contractor may either be a company or group of companies, one of which has the responsability of Operator.
c) The Contractor finances at his own and expense all exploration evaluation, development and exploitation work and conducts it on behalf of Entreprise Tunisienne d'Activites Petrolieres under the control of the latter.
d) If hydrocarbons are produced, Entreprise Tunisienne d'Activites Petrolieres gives the Contractor a percentage of this production in order to reimburse expenditure incurred by the latter in the context of the contract, until the said expenditure has been reimbursed.
e) Entreprise Tunisienne d'Activites Petrolieres gives the Contractor an agreed percentage of the remainder of the production as remuneration.
f) The Contractor is subject to the payment of the duties and taxes mentioned under Article 16 with the exception of those provided for under paragraphs a) and b).
With regard to the tax on profit, it may be settled, in acordance with what has been agreed upon, either directly by the Contractor or by Entreprise Tunisienne d'Activites Petrolieres on behalf of the Contractor.
In the latter event, the percentage of production finally kept by Entreprise Tunisienne d'Activites Petrolieres includes a percentage corresponding to the amount of this tax.
However, concessions established and development prior to the date of promulgation of this Decree-Law are excluded from the application of the above-mentioned option.
Any permit for which the Holder has not opted the application of the provisions of this Decree-Law remains governed by the Special Convention relative hereto.
a) The deadlines of 3 and 4 years for carrying out discoveries appraisal programs are meant as from the date of July 1 st,1987.
b) The deadlines of 6 and 8 years for the transfer of liquid and gaseous hydrocarbons discoveries are meant as from the date of July lst,1987.
c) The date of notification of the discovery mentioned in Article 25 is fixed at June 30th, 1987.
The personnel of foreign nationality being non-resident prior to their hiring or secondment to Tunisia and assigned to the exploration work may:
- Choose a system of Social security other than the Tunisian regime, in which case the employee and the employer are not compelled to pay the Social Security contribution in Tunisia.
- Benefit from the exemption of Income Tax of Wages, and Salaries of the Personnel Contribution to Government, as well as the "Contribution of SolidarityN due on wages and salaries which are based upon the latter. He is, in return, subject to a fiscal contribution fixed at 20% of the total amount of his remuneration.
The benefit of these provisions is subject to the presentation of an attestation from the Ministry of Energy and Mines.
The personnel of foreign nationality employed by the Holder during the exploration phase benefits from the regime of exemption of duties and taxes for the importation of his personal effects and a car for each of hls personnel. The transfer to a resident person of the imported vehicle and or belongings is subject to the formalitles of External trade and to the payment of duties and taxes in force at the date of the transfer, calculated on the basis of the value vehicle or of the belongings on that date.
Article 41: Article 42: The provisions of the aforementioned Law n°ree; 87-6 Mars 1987 will apply to the Holder having opted the application of the provisions of the Decree-Law n°ree; 85-9 of 14 Septembre 1985, unless written opposition is expressed by him.
All previous provisions contrary to the aforementioned Law n°ree; 87-9 of 6 March 1987 are abrogated, which Law becomes effective one month as from date of its promulgation.
The present Law will be published in the "Journal Officiel de la Republique TunisienneD (Offlcial Gazette of the Tunisian Republic) and executed as Law of the State.
Executed In Carthage Palace on March 6th, 1987 rhe Presldent of the Tunlslan Republlc
Dated June 18, 1990 LAW 90-56
PROMOTING THE EXPLORATION AND PODUCTION OF LIQUID AND GASEOUS
HYDROCARBONS
The Minister responsible for Energy may, upon the request of the Holder of an exploration permit, and based on the substantiated advice of the Consultative Committee on Hydrocarbons, issue an order reducing the time period specified in Article 26 of the Decree on Mines dates January 1 st, 1953.
At the time of renewal of exploration permits the Minister responsible for Energy may, according to the substantiated advice of the Consultative Committee on Hydrocarbons, authorize permit holders to adjust their expenditure commitments.
In order to promote exploration activities in areas which are not easily accessible or where the prospect is either gas or is located in a deep geological structure the Minister responsible for Energy may authorize the Holders of exploration permits to increase the expenditure related there to by 10-30% for fiscal amortization purposes. The criteria for admission to the benefit of this incentive, the definition of areas which are not easily explored and the level beyond which a well may be considered to be deep shall be decided by order of the Minister responsible for Energy with the agreement of the Consultative Committee on Hydrocarbons.
The terms of the present article apply to the holders of permits granted either before or after the date of promulgation of the law hereunder.
Article 6 Article 7 Arlicle 8 Anicle 9 Article 10 Holders of exploration permits may be authorized by order of the Minister responsible for Energy, in accordance with the substantiated advice of the Consultative Committee on Hydrocarbons, to amortize a discovery deriving from another permit any exploration expenditure incurred as a result of new commitments which were taken additional to contractual commitments, provided that such discovery was made after the implementation of the new commitments.
New commitments are considered to be all commitments made by holders in addition to contractual commitments, notwithstanding the fact that the holder has benefitted from a reduction in his initial commitments in compliance with Article 4 hereunder.
By order of the Minister responsible for Energy, in accordance with the substantiated advice of the Consultative Committee on Hydrocarbons, holders of one or more exploration expenditure incurred in permits obtained after the date of promulgation of the law hereunder on all of the discoveries made after the attribution of the new permit(s) in their previous permit(s).
The terms of the present article do not apply to any permit located in areas in which the holder held interests during the three years prior to the date on which such permit was granted.
The annual expenditure amount which may be amortized in accordance with Articles 6 and 7 hereunder shall not exceed half of the income deriving to the holder from discoveries for the year in question.
The benefit of the terms of Article 5 hereunder may not be accrued with the benefit of the terms of Articles 6 and 7 hereunder.
All previous provisions which are in conflict with the law hereunder are hereby repealed.
Zine El Abidine Ben Ali