Uzbekistan adopts regulation for use of utilized flare gas
Uzbekistan, Tashkent, August 6 / Trend D. Azizov /
The Ministry of Finance and the State Tax Committee of Uzbekistan adopted a regulation on order of payment of tax for use of interior for utilized natural (flare) gas.
The document was published by mass media.
According to the document, the amount of utulized natural (flare) gas without the volume of gas pumped back into the reservoir to maintain reservoir pressure and extract hydrocarbons within the closed loop process is subject to tax.
Taxable base for tax on use of interior for utilized natural (flare) gas is the cost of the volume of utilized natural (flare) gas, calculated at average weighted price for realized gas in the reporting period.
The tax rate is set at 9 percent from taxable base. The tax is paid by enterprises, realizing utilized flare gas.
The State Budget of Uzbekistan for 2010 determined the tax rate at 30 percent for mineral exploitation while producing natural gas, unstable gas condensate - 20 percent, underground natural gas production - 2.6 percent.
The 2009 budget has not provided the tax for mineral exploitation while producing utilized natural gas.
Uzbekistan is among the 10 largest countries on natural gas production. Uzbekneftegaz is the monopoly operator of oil and gas industry in Uzbekistan. It can provide natural gas production in the volume of 58-59 billion cubic meters and liquid hydrocarbons to the amount of 8 million tons per year.
It was reported that in January-June 2010, Uzbekistan reduced the production of liquid hydrocarbons (oil and gas condensate) by 19.7 percent compared up to 1.895 million tons in 2009. Extraction of gas condensate decreased by 25.3 percent - up to 859.700 tons, oil - by 14.3 percent to 1,035 million tons.
Natural gas production in January-June 2010 decreased by 3.8 percent - up to 30.548 billion cubic meters.
Oil and gas condensate production reduced by 7,4 percent in 2009 compared up to 4.455 million tons, including gas condensate - by 5,4 percent up to 2.124 million tons, oil - by nine percent up to 2.331 million tons in 2008.
Data on natural gas production for 2009 has not been published.