Malaysia Offers Incentives to Develop Stranded Oil Resources

摘要

In a bid to encourage further oil and gas development, Malaysian Prime Minister Najib Razak announced Tuesday five new tax incentives aimed at unlocking and monetizing stranded deposits of oil and gas. To encourage investment in marginal fields, the tax rate for such developments will be reduced from 38% to 25%, and capital allowance has been accelerated from 10 years to five years in cases where this can improve project viability. Marginal fields will also be exempt from a duty levied on exported crude, currently at 10%.