Go on then. I'll have a go8 Feb 2026 09:24
Thanks Keith.
If you didn't complete 4th grade...Today 07:23
Get someone to read the big words for you. I have posted re. commerciality declaration and timing several times over the last month, but your playground friends respond with obscenities in order to get the whole thread removed. Thank you to @OlivettiChamp for re-posting this at 0751 6th February:
"1). It is correct that the standard ONHYM hydrocarbon contract states that the 10-year exemption from corporation tax begins upon commercialisation. However, the situation is more nuanced than this simple statement may seem to imply. I appreciate that nuance may be difficult for some to understand.
2). Upon the declaration of a commercial discovery, an Exploitation Concession must then be applied for within a defined period. This application must include timed and costed proposals to proceed to production.
3). Moroccan Hydrocarbon Code (Law No 21-90 and Decree No 2-93-786) then come into play. The concession can be revoked ("déchéance") for non-compliance, explicitly including "failure to timely complete development works and start operations."
4). It should be obvious that a company or its co-developers would not wish to prematurely announce a commercial discovery until it was in a position to be able to commence large scale production right from day 1, otherwise it would be losing serious amounts of tax benefits on the larger scale production likely in the later years of the exemption period.
5). PRD could have announced a commercial discovery a long time ago. They have not done so, and will not do so, until they have all the ducks in a row. These include * Completed quantification of available gas volumes. * Signed a definitive cooperation and gas sales agreement with an appropriate third party. * Ensured that a fully costed Field Development Plan is agreed. *The financial wherewithal and technical expertise are available to complete such an FDP.
6). The overarching reason for delaying announcement of a commercial discovery is for maximising tax benefits."
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